BETA

69 Amendments of Philippe LAMBERTS related to 2017/0136(COD)

Philippe LAMBERTS

Proposal for a regulation
Recital 2

(2) Since the adoption of Regulation (EU) No 648/2012, the volume of CCP activity in the Union and globally has grown rapidly in scale and in scope. The expansion in CCP activity is set to continue in the coming years with the introduction of additional clearing obligations and the rise in voluntary clearing by counterparties not subject to a clearing obligation. The Commission’s proposal of 4 May 201747 to amend Regulation (EU) No 648/2012 in a targeted manner, to improve its effectiveness and proportionality, will create further incentives for CCPs to offer central clearing of derivatives to counterparties and facilitate access to clearing to small financial and non- financial counterparties. Deeper and more integrated capital markets resulting from the Capital Markets Union (CMU) ~~will~~should further increase the need for cross-border clearing in the Union, thus further increasing the importance and the interconnectedness of CCPs within the financial system. __________________ 47 Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivatives contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories, COM/2017/0208 final.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 10

(10) A specific E~~xecutive Session (“CCP Executive Session”) should be created within the Board of S~~SMA internal committee (“CCP Supervisory Committee”) should be created within ESMA for the purposes of preparing decisions and carrying out the tasks relating to the supervis~~ors~~ion of ~~ESMA to~~CCPs, handleing tasks related to CCPs in general, and superviseing Union and third- country CCPs in particular. In order to guarantee a smooth establishment of the CCP Executive Session, it is necessary to clarify its interactions with the Board of Supervisors of ESMA, its organisation and the tasks it should performThe CCP Supervisory Committee should be composed of authorities experienced in the supervision of CCPs. In order to ensure the smooth integration of the CCP Supervisory Committee within the structure of ESMA, while taking due account of the specific needs of CCP supervision, as well as to preserve a swift decision-making process. Its decisions should be subject to the non- objection of the Board of Supervisors of ESMA or as appropriate by the ESMA Executive Board.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 11

(11) In order to ensure a coherent supervisory approach and to reflect the mandates of relevant authorities involved in the supervision of CCPs, the CCP ~~Executive Session~~Supervisory Committee should be composed of two permanent and ~~CCP-specific members. Permanent members should include the Head of the CCP Executive Session and two independent Directors, who~~independent members, a head and a Vice- Head. These members should act independently and objectively in the interest of the Union as a whole. ~~The Commission and the ECB should also appoint permanent members.~~ Members specific to each CCP should include a representative of the competent national authorities of the Member States where the CCP is established, designated in accordance with Regulation (EU) No 648/2012, and a representative of the relevant central bank(s) of issue. The Head of the CCP ~~Executive Session~~Supervisory Committee should be able to invite members of the supervisory college, as well as representatives of authorities of third- country CCPs recognised by ESMA as observers to ensure that the views of the other relevant authorities are taken into account by the CCP ~~Executive Session~~Supervisory Committee. While the permanent members should participate in all meetings of the CCP ~~Executive Session~~Supervisory Committee, CCP specific members and observers should participate only where necessary and appropriate for CCPs under their supervision. The presence of two independent ~~permanent~~ members and of CCP-specific members should ensure that decisions made in the CCP ~~Executive Session~~Supervisory Committee are consistent, appropriate and proportionate across the Union and that the relevant national competent authorities, central banks of issue and observers are involved in the decision-making on issues concerning a CCP established in a Member State.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 12

(12) When deciding on issues concerning a CCP established within a Member State, the CCP ~~Executive Session~~Supervisory Committee should convene and ensure that its permanent members and the relevant member(s) representing the competent national authorities designated by the Member State in accordance with Regulation (EU) No 648/2012 are involved in the decision-making process as well as observers appointed by the relevant central banks of issue. When deciding on a third- country CCP, only the permanent members, the relevant central bank(s) of issue and any relevant observers of the CCP ~~Executive Session~~Supervisory Committee should participate in the decision-making process.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 13

(13) In order to ensure an appropriate, effective and swift decision-making process, the Head, the ~~two Directors of the CCP Executive Session~~Vice-Head of the CCP Supervisory Committee, and the representative of the competent authority of the Member State where the CCP is established should have voting rights. The representatives of the ECB, of the Commission and of the relevant central bank(s), as well as observers, should have no voting rights. The CCP ~~Executive Session~~Supervisory Committee should take its decisions by a simple majority of its members, and the Head should have a casting vote in case of a tie.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 14

(14) The CCP ~~Executive Session~~Supervisory Committee should be responsible for specific tasks assigned to it pursuant to Regulation (EU) No 648/2012 to ensure the proper functioning of the internal market as well as the financial stability of the Union and its Member States.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 15

(15) In order to ensure effective supervision, the CCP ~~Executive Session~~Supervisory Committee should have a dedicated staff and adequate resources to guarantee its autonomy, independence and adequate functioning in relation to its tasks. The budgetary impact needs to be considered in the statement made by ESMA in accordance with Regulation (EU) No 1095/2010.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 16

(16) To provide for an appropriate level of expertise and accountability, the Head and the ~~two Directors of the CCP Executive Session~~Vice-Head of the CCP Supervisory Committee should be appointed on the basis of merit, skills, knowledge of clearing, post-trading and financial matters, as well as experience relevant to the supervision and regulation of CCPs. They should be chosen on the basis of an open selection procedure. The Commission should submit a proposal for the appointment of candidates to the European Parliament for approval. Following the European Parliament’s approval of that proposal, the Council should adopt an implementing decision.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 17

(17) In order to ensure transparency and democratic control, as well as to safeguard the rights of the Union institutions, the Head ~~and the two Directors of the CCP Executive Session~~of the CCP Supervisory Committee should be accountable to the European Parliament and to the Council for any decisions taken on the basis of this Regulation.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 18

(18) The Head and the ~~two Directors of the CCP Executive Session~~Vice-Head of the CCP Supervisory Committee should act independently and objectively in the interest of the Union. They should be full- time members of the ESMA Executive Board. They should ensure that appropriate account is taken of the proper functioning of the internal market as well as financial stability in each Member State and in the Union.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 19

(19) In order to promote consistency in the supervision of Union and third-country CCPs across the Union, the Head of the CCP ~~Executive Session~~Supervisory Committee should chair and manage colleges, and the permanent members of the CCP ~~Executive Session~~Supervisory Committee should attend them. The ECB should, where relevant and in accordance with Council Regulation (EU) No 1024/2013, also join the colleges to be able to exercise its mandate in accordance with Article 127 of the TFEU.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 20

(20) In order to ensure an appropriate and effective decision-making process, the permanent members of the CCP ~~Executive Session~~Supervisory Committee should have one vote each in the colleges, with the exception of the representative of the Commission, who should be non-voting. The current members of the colleges should continue to exercise their current voting rights.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 21

(21) While national competent authorities continue to exercise their current supervisory responsibilities under Regulation (EU) No 648/2012, the prior consent of ESMA should be required for certain decisions in order to promote consistency in the supervision of CCPs throughout the Union. ESMA may also request any specific supervisory action as provided for in this Regulation within a specified timeframe. A specific mechanism is introduced for cases of disagreement between ESMA and the national competent authorities. Similarly, there is a need to better reflect the mandates of the central banks of issue concerning their monetary policy responsibilities, due to the potential risks that the malfunctioning of a CCP could pose to the implementation of the monetary policy of the Union and the promotion of the smooth operation of payment systems. Therefore, the ~~prior consent~~consultation of the relevant central banks of issue should be required on certain decisions envisaged by national competent authorities, in particular when it relates to a CCP’s payment and settlement arrangements and related liquidity risk management procedures for the transactions denominated in that central bank of issue’s currency.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 25

(25) As part of its commitment to integrated financial markets, the Commission should continue to determine by way of equivalence decisions that the legal and supervisory frameworks of third countries fulfil the requirements of Regulation (EU) No 648/2012. In order to enhance the implementation of the current equivalence regime in relation to CCPs, the Commission should be able to, if necessary, specify further the criteria for assessing the equivalence of third-country CCP regimes. It is also necessary to empower ESMA with the supervision of regulatory and supervisory developments in those third-country CCP regimes that have been deemed equivalent by the Commission. This is in order to ensure that the equivalence criteria and any specific conditions set for their use continue to be satisfied by third countries. ESMA should report its findings to the Commission, the European Parliament and the Council on a confidential basis.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 32

(32) In order to ensure the proper involvement of the central bank(s) of issue, the systemically important third-country CCP should also fulfil ~~any addition~~the relevant requirements that the central bank(s) of issue consider necessary for carrying out of their monetary policy tasks. Such requirements should be limited to requirements relating to stress testing, reporting requirements, liquidity or collateral requirements, thate right for the central bank~~(s)~~ of issue ~~consider necessary~~to participate in on- site inspections and the requirement for the CCP to obtain a banking licence and open a cash account at a central bank. The central bank(s) of issue should provide ESMA with confirmation whether or not the CCP complies with ~~any~~those additional requirements as quickly as possible and in any case ~~180 days from~~in due time before the deadline for ESMA to reply to the CCP’s application ~~to ESMA~~.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 33

(33) The degree of risk posed by a systemically-important CCP to the financial system and stability of the Union varies. The requirements for systemically- important CCPs should therefore be applied in a manner proportionate to the risks that the CCP may present to the Union. Where ESMA ~~and~~or the relevant central bank(s) of issue conclude that a third-country CCP is of such systemic importance that additional requirements will not ensure the financial stability of the Union, ESMA or the relevant central bank(s) should be able to recommend to the Commission that that CCP should not be recognised. The Commission should be able to adopt an implementing act declaring that the third- country CCP should be established in the Union and authorised as such to provide clearing services in the Union.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 35

(35) ESMA should also be able to take into account the extent to which the compliance of a systemically-important third-country CCP with the requirements applicable in that third country can be compared to the compliance of that CCP with the requirements of Regulation (EU) No 648/2012. The Commission should adopt a delegated act specifying further the modalities and conditions to assess such comparable compliance as well as a delegated act for specifying the criteria for considering that a CCP is of substantial systemic importance.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 36

(36) ESMA should have all the powers necessary to supervise recognised third- country CCPs to ensure their ongoing compliance with the requirements of Regulation (EU) No 648/2012. In certain areas, ESMA’s decisions should ~~be subject to the prior consent of~~consult the relevant central bank(s) of issue.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Recital 48

(48) The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the further specification of the type of fees, the matters for which fees are due, the amount of the fees to be paid and the manner in which they are to be paid; specifying the conditions under which the criteria are specified to determine if a third- country CCP is, or is likely to become, systemically important for financial stability of the Union or for one or more of its Member States as well as for specifying the criteria for considering that a CCP is of substantial systemic importance; the further specification of the criteria to be used in its equivalence assessments of third countries; specify how and under what conditions certain requirements shall be complied with by third-country CCPs; further rules of procedure relating to the imposition of fines or periodic penalty payments, including provisions on the rights of defence, time limits, the collection of fines or periodic penalty payments and the limitation periods for the imposition and enforcement of penalty payments or fines; measures to amend Annex IV in order to take account of developments in the financial markets.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 1095/2010
Article 6 – point 1 a

2. In Article 6, the following point (1a) is inserted: ‘ (1a) a Board of Supervisors in Executive Session for CCPs (CCP Executive Session), which shall exercise the tasks set out in Article 44b; ‘deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 3

Regulation (EU) No 1095/2010
Article 35 – paragraph 6 – introductory part

Where complete or accurate information is not available or is not made available in a timely fashion under paragraph 1 or 5, the Authority may request information, by way of a duly justified and reasoned request directly to the relevant financial market participants or, directly from:

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 1095/2010
Article 40 – paragraph 1 – point f

~~4. In Article 40(1), the following point (f) is added: ‘ (f) the permanent members of the CCP Executive Session, referred to in point (i) of Article 44a(1)(a), who shall be non-voting. ‘~~deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) No 1095/2010
Article 42 – subparagraph 1

5. In Article 42, the first subparagraph is replaced by the following: ‘When carrying out the tasks conferred upon it by this Regulation, the Chairperson, the voting permanent members and the voting members specific to each CCP of the CCP Executive Session referred to in point (i) of Article 44a(1)(a) and the voting members of the Board of Supervisors shall act independently and objectively in the sole interest of the Union as a whole and shall neither seek nor take instructions from Union institutions or bodies, from any government of a Member State or from any other public or private body. ‘deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) No 1095/2010
Article 43 – paragraphs 1 and 8

6. Article 43 is amended as follows: (a) paragraph 1 is replaced by the following: ‘1. give guidance to the work of the Authority. It shall be responsible for the tasks referred to in Chapter II, except for those tasks for which the CCP Executive Session is responsible pursuant to Article 44b(1). ‘ (b) paragraph 8 is replaced by the following: ‘8. exercise disciplinary authority over the Chairperson and may remove him or her from office in accordance with Article 48(5). The Board of Supervisors, in agreement with the CCP Executive Session, shall exercise disciplinary authority over the Executive Director and may remove him or her from office in accordance with Article 51(5). ‘deleted The Board of Supervisors shall The Board of Supervisors shall

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 7

Regulation (EU) No 1095/2010
Chapter III – section 1A

~~[...]~~deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 8

Regulation (EU) No 1095/2010
Chapter III – Section 3 – title

~~8. The title of Section 3 of Chapter III is replaced by the following: ‘Chairperson, Head and Directors’~~deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 1095/2010
Article 48 a

~~[...]~~deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 1095/2010
Article 49

10. Article 49 is replaced by the following: ‘Without prejudice to the role of the Board of Supervisors, in relation to the tasks of the Head of the CCP Executive Session and the Directors referred to in point (i) of Article 44a(1)(a) and Chairperson, shall neither seek or take instructions from the Union institutions or bodies, from any government of a Member State or from any other public or private body. Neither Member States, the Union institutions or bodies, nor any other public or private body shall seek to influence the Head of the CCP Executive Session and the Directors referred to in point (i) of Article 44a(1)(a) or the Chairperson in the performance of his or her tasks. In accordance with the Staff Regulations referred to in Article 68, the Chairperson, the Head of the CCP Executive Session and the Directors referred to in point (i) of 44a(1)(a) shall, after leaving service, continue to be bound by the duty to behave with integrity and discretion as regards the acceptance of certain appointments or benefits. ‘deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 11

11. Article 50 is replaced by the following: ‘1. Council may invite the Chairperson or his alternate, or the Head of the CCP Executive Session, to make a statement while fully respecting their independence. The Chairperson or the Head shall make a statement before the European Parliament and answer any questions put by its members, whenever so requested. 2. The Chairperson or the Head of the CCP Executive Session shall report in writing on the main activities of Board of Supervisors and of the CCP Executive Session, respectively, to the European Parliament where requested and at least 15 days before making the statement referred to in paragraph 1. 3. referred to in Articles 11 to 18 and Articles 20 and 33, the Chairperson shall report any relevant information requested by the European Parliament on an ad-hoc basis. In addition to the information referred to in Article 33, the Head of the CCP Executive Session shall report any relevant information requested by the European Parliament on an ad-hoc basis.’deleted The European Parliament or the In addition to the information

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 12

12. Article 53 is amended as follows: (a) following: ‘2. responsible for implementing the annual work programme of the Authority under the guidance of the Board of Supervisors and the CCP Executive Session and under the control of the Management Board. ‘ (b) following: ‘4. prepare a multi-annual work programme, as referred to in Article 47(2). For the tasks and powers referred to in Article 44b(1), the Executive Director shall obtain the consent of the CCP Executive Session prior to submitting it to the Management Board. ‘ (c) following: ‘7. shall prepare a draft report with a section on the regulatory and supervisory activities of the Authority and a section on financial and administrative matters. For the tasks and powers referred to in Article 44b(1), the Executive Director shall obtain the consent of the CCP Executive Session prior to submitting it to the Management Board. ‘deleted Paragraph 2 is replaced by the The Executive Director shall be Paragraph 4 is replaced by the The Executive Director shall Paragraph 7 is replaced by the Each year the Executive Director

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 1095/2010
Article 63 – paragraph 1 a

13. In Article 63, the following paragraph 1a is inserted: ‘1a. ESMA’s expenditure and fees relating to the tasks and powers referred to in Article 44b (1) shall be separately identifiable within the statement of estimates referred to in paragraph 1. Prior to the adoption of that statement of estimates, the draft prepared by the Executive Director relating to such expenditure and fees shall be approved by the CCP Executive Session. The annual accounts of ESMA drawn up and published in accordance with Article 64(6) shall include the income and expenses related to the tasks referred to in Article 44b(1). ‘deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 14

Regulation (EU) No 1095/2010
Article 70 – paragraph 1

14. In Article 70, paragraph 1 is replaced by the following: ‘1. Supervisors, the CCP Executive Session and the Management Board, the Executive Director, and members of the staff of the Authority, including officials seconded by Member States on a temporary basis and all other persons carrying out tasks for the Authority on a contractual basis, shall be subject to the requirements of professional secrecy pursuant to Article 339 TFEU and the relevant provisions in Union legislation, even after their duties have ceased. ‘deleted Members of the Board of

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 1095/2010
Article 76 – paragraph 2 a

15. In Article 76, the following paragraph 2a is inserted: ‘2a. Until such time as the Head of the CCP Executive Session and the Directors of the CCP Executive Session referred to in Article 44a(1) take up their duties following their appointment in accordance with Article 48a, the functions of the CCP Executive Session shall be carried out by the Board of Supervisors. ‘deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 3 – point a

Regulation (EU) No 648/2012
Article 18 – paragraph 1 – subparagraph 2

The Head of the CCP ~~Executive Session referred to in Article 48a of Regulation (EU) No 1095/2010~~Supervisory Committee shall chair and manage the college.”

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 3 – point b

Regulation (EU) No 648/2012
Article 18 – paragraph 2 – point a

(a) the permanent members of the CCP ~~Executive Session~~Supervisory Committee referred to in Article ~~44a of Regulation (EU) No 1095/2010~~22a;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 2 –subparagraph 1

Competent authorities shall ~~prepare and submit draft decisions to~~consult the central banks of issue referred to in Article 18(2)(h) before adopting any decision related to requirements pursuant to Articles ~~14, 15, 20,~~ 44, 46, 50 and 54.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 2 – subparagraph 2

Competent authorities shall obtain, in accordance with Article 21(b) the consent of the central banks of issue referred to in the first subparagraph in respect of any aspect of those decisions relating toentral banks of issue as referred to in the first subparagraph may require the CCP to obtain an authorisation granting access to the activity of credit institution pursuant to Article 8 of Directive 2013/36/EU whenever such authorisation is deemed necessary for the effective carrying out of the monetary policy objectives. When such a requirement is imposed, the competent authority may only prepare a draft decision pursuant to Article 14 or 15 in accordance with the procedure referred to in paragraph 1 when the central banks of issue referred to therein have provided ESMA with written confirmation, within 180 days of the submission of an application, that the CCP complies with such authorization or that such authorization is not required. The written confirmation shall provide a duly justified and reasoned explanation of the relevance of such authorisation for the carrying out of their monetary policy tasks.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 3

3. ESMA shall transmit to competent authorities any relevant information which may result in the adoption of a decision referred to in paragraph 1 and may request specific supervisory actions as provided for in this Regulation within a specified timeframe, including withdrawal of authorisation. Competent authorities shall keep ESMA informed of any subsequent action or inaction thereto.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 4

4. For the purposes of paragraph 1, the consent of ESMA shall be deemed to be given unless it proposes amendments or objects to the draft decision within a maximum period of 1530 calendar days after having been notified of that decision. Where ESMA proposes amendments or objects to a draft decision, it shall provide full and detailed reasons, in writing.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 6

6. Where the competent authority disagrees with the proposed amendment or the objection of ESMA, it may submit within 5 days a reasoned request to the Board of Supervisors referred to in Article 6(1) of Regulation (EU) No 1095/2010 to assess that objection or amendment. ~~The Board of Supervisors shall either endorse or reject ESMAs objections or amendments within 10 days of that request and paragraph 5 shall apply accordingly~~ESMA’s objections or amendments shall be deemed adopted unless the Board of Supervisors decides on the basis of a qualified majority, as defined in Article 16(4) of the Treaty on European Union and in Article 238(2) TFEU, to reject the draft decision within five working days of its transmission.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 7 – subparagraph 1 – introductory part

Without prejudice to the powers of the Commission under Article 258 TFEU, ESMA ~~may~~shall adopt a decision addressed to a financial market participant requiring the necessary action to comply with its obligations under Union law, including the cessation of any practice in the following cases:

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 7 – subparagraph 1 – point a

(a) where a competent authority does not comply with paragraph 5 in case of ESMAs objection or amendments to a final draft decision or in situations referred to in Article 24;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 a – paragraph 7 – subparagraph 1 – point b

(b) where a competent authority, following a request from ESMA in accordance with paragraph 3, fails to take the requested action within ~~a reasonable time where that failure results in a financial market participant breaching the applicable requirements in Titles IV and V of this Regulation~~the specified timeframe by ESMA referred to in paragraph 3.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 b

~~[...]~~deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 b – Title

~~Consent of the Central Bank of Issue~~deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 b – paragraph 1

1. The consent referred to in Article 21a(2) shall be deemed to be given unless the central bank of issue proposes amendments or objects to the draft decision within a maximum period of 15 calendar days after its submission. Where the central bank of issue proposes amendments or objects to a draft decision, it shall provide full and detailed reasons, in writing. Where ESMA has proposed amendments pursuant to Article 21a(4) to the draft decisions to be adopted pursuant to Articles 14, 15, 20 and 54, it shall also submit them also to the central bank of issue. In that case, the deadline referred to in the first subparagraph shall be extended by 5 days.deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7

Regulation (EU) No 648/2012
Article 21 b – paragraph 2

2. Where the central bank of issue proposes amendments, the competent authority may only adopt the decision as amended by that central bank of issue. Where the central bank of issue objects to a draft decision, the competent authority shall not adopt that decision.deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7 a (new)

Regulation (EU) No 648/2012
Article 22 a (new)

7a. The following Article 22a is inserted: Article 22a ESMA CCP Supervisory Committee 1. Notwithstanding Article 41 and 45b of Regulation (EU) No 1095/2010, ESMA shall establish a permanent internal committee for the purposes of preparing decisions and carrying out the tasks relating to the supervision of Union and third country CCPs referred to in this Regulation as well in the CCP recovery and resolution Regulation, except the tasks conferred to the CCP resolution unit. The CCP Supervisory Committee established pursuant to the first subparagraph shall, in accordance with the provisions of Article 43 and 47 of Regulation (EU) No 1095/2010 submit to the ESMA Board of Supervisors or as appropriate to the ESMA Executive Board complete draft decisions for adoption in accordance with Article 22c. 2. The CCP Supervisory Committee shall be composed of: (a) the following permanent members: (i) a Head who shall be responsible for preparing the work of the CCP Supervisory Committee, shall chair its meetings and shall be voting; (ii) A Vice-Head who shall carry out the tasks of the Chairperson in his or her absence or reasonable impediment and who shall be voting; (iii) a representative of the Commission, who shall be non-voting; and (iv) a representative of the ECB, who shall be non-voting; (b) the following non-permanent members specific to each CCP in relation to which the CCP Supervisory Committee is convened: (i) a representative of the competent authority for each CCP established in the Union in relation to which the CCP is convened, who shall be voting; and (ii) a representative of each of the relevant central banks of issue referred to in point (h) of Article18(2) for each CCP established in the Union in relation to which the CCP Supervisory Committee is convened, who shall be non-voting. The Head may invite as an observer to the meetings of the CCP Supervisory Committee, where and as appropriate and necessary, other members referred to in Article 18(2) of Regulation (EU) No 648/2012 of the college of the relevant CCP. Where the CCP Supervisory Committee is exercising any of the tasks referred to in point (b) of paragraph 3, authorities of third country CCPs recognized by ESMA pursuant to Article 25 of Regulation (EU) No 648/2012 may be invited, where and as appropriate and necessary, as observers. Where discussing decisions pertaining to Article 25(2a) and (2c), Article 25b and Articles 41, 44 and 46, central banks of issue of the financial instruments cleared or to be cleared by the third country CCP in relation to which the CCP Supervisory Committee convenes may be invited to participate in the CCP Supervisory Committee as observers. Meetings of the CCP Supervisory Committee shall be convened by its Head at its own initiative or at the request of any of its members. The CCP Supervisory Committee shall meet at least six times a year. Where a task of the CCP Supervisory Committee does not relate to a specific CCP established in the Union, the Committee shall be composed only of the permanent members referred in point (a) of this paragraph and, where relevant, the central banks of issue referred to in point (b)(ii) of this paragraph. 3. The CCP Supervisory Committee shall be responsible for all of the following: (a) providing the consent referred to in Article 21a(1); (b) recognizing and supervising third- country CCPs in accordance with Article 25 and the monitoring of regulatory and supervisory developments in third countries under Chapter 2 of Title II of this Regulation and; (c) other tasks and decisions than those referred to in points (a) and (b) of the first subparagraph conferred to ESMA in Regulation (EU) No1095/2010 or in Regulation [CCP recovery and resolution] with the exception of task sand decisions attributed to the ESMA resolution unit. 4. The Head and the Vice-Head of the CCP Supervisory Committee shall be a full-time, independent professional. They shall be full-time members of the ESMA Executive Board and shall be assigned to the responsibilities referred to in paragraph 2 by the Chairperson of the ESMA Executive Board for their 5 year term of office as full-time members of the ESMA Executive Board on the basis of merit, skills, knowledge of clearing, post- trading and financial matters, and of experience relevant to CCP supervision and regulation. The appointments shall respect the principles of gender balance, experience and qualification. The Head and the Vice-Head shall not hold any other office at national, international level or another Union agency or institution. 5. The CCP Supervisory Committee shall be supported by a dedicated staff possessing sufficient knowledge, skills and experience and shall be granted adequate resources by ESMA to carry out its tasks. 6. The CCP Supervisory Committee shall inform the relevant supervisory college of the complete draft decisions it submits to the ESMA Board of Supervisors or as appropriate to the ESMA Executive Board pursuant to paragraph 1. 7. The CCP Supervisory Committee shall ensure that members of the college referred to in Article 18(2), the authorities referred to in Article 25(3) and the ESRB, in accordance with Article 15 of Regulation (EU) No 1092/2010, have access to all information necessary for the purpose of carrying out their tasks. 8. The Head of the CCP Supervisory Committee on behalf of the permanent members of the CCP Supervisory Committee shall report any relevant information requested by the European Parliament in written on an ad-hoc basis.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7 b (new)

Regulation (EU) No 648/2012
Article 22 b (new)

7b. The following Article 22b is inserted: Article 22b Decision-making within the CCP Supervisory Committee The CCP Supervisory Committee shall take its decisions by a simple majority of its members. In the event of a tie, the Head shall have the casting vote.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 7 c (new)

Regulation (EU) No 648/2012
Article 22 c (new)

7c. The following Article 22c is inserted: Article 22c Decision-making within the Board of Supervisors Where the CCP Supervisory Committee submits draft decisions to the ESMA Board of Supervisors or pursuant to Article 21c to the ESMA Executive Board those draft decisions shall be deemed adopted by ESMA unless the Board of Supervisors or the Executive Board decide on the basis of a qualified majority as defined in Article 16(4) of the Treaty on European Union and in Article 238(2) TFEU, to reject the draft decision within five working days of its transmission. In cases of particular urgency, the aforementioned period shall not exceed 24 hours. Where the Board of Supervisors rejects a draft decision, it shall state the reasons for doing so in writing.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – point a

(a) the nature, size and complexity of the CCP's business, including the value in aggregate terms and in each Union currency of transactions cleared by the CCP, or the aggregate exposure of the CCP engaged in clearing activities to its c~~ounterparties;~~learing members as well as the share and the complexity of the contracts cleared. And, to the extent that they can be readily identified, their clients and indirect clients, in particular where any of those members or clients have been designated as a global or other systemically important institutions (G-SIIs or O-SIIs) pursuant to Directive 2013/36/EU.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Paragraph 25 – paragraph 2 a – subparagraph 1 – point b

(b) the effect that the failure of or a disruption to the CCP would have on financial markets, financial institutions, or the broader financial system, or on the financial stability of the Union or for one or more of its Member States and whether the CCP is subject to recovery and resolution plans deemed equivalent by ESMA;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – point c

(c) the CCP's clearing membership structure as well as the structure of its network of clients and indirect clients;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – point c a (new)

(ca) the availability of substitutable clearing services in the currencies concerned to clearing members, their clients and indirect clients;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 b – point a

(a) the CCP complies, at the moment of recognition and thereafter on an ongoing basis, with the requirements set out in Article 16 and in Titles IV and V. ESMA shall take into account, in accordance with Article 25a(2), ~~the extent to which an CCP's compliance with those requirements is satisfied by~~ the CCP's compliance with the comparable requirements applicable in the third country;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 b – point b

(b) following the consultation referred to in point (f) of paragraph 3, the central banks of issue referred to therein have provided ESMA with written confirmation, within 180 days of the submission of an application, that the CCP complies with ~~any~~specific requirements imposed by those central banks of issue relevant in the carrying out of their monetary policy tasks in relation to stress testing, reporting, liquidity, collateral, the right of the central bank of issue to participate in on- site inspections, and as appropriate, the requirement of establishing a subsidiary in the Union to obtain an authorisation granting access to the activity of credit institution pursuant to Article 8 of Directive2013/36/EU and thereby the opening by the CCP of a cash account at a central bank. The written confirmation shall provide a duly justified and reasoned explanation of the relevance of the requirements pursuant to this paragraph for the carrying out of monetary policy tasks. Where the relevant central bank of issue has not provided a written response to ESMA within the deadline, ESMA may consider this requirement to be fulfilled;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 b – point d

(d) the CCP has put in place all necessary measures and procedures that ensure the effective compliance with the requirements laid down in points (a) and (c); including procedures to ensure compliance with requests addressed by ESMA that appropriate action is taken within a set timeframe in relation with the requirements set out in Article 16 and in Titles IV and V;

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 c – subparagraph 1

ESMA~~, in agreement with~~ or the relevant central banks of issue and commensurate with the degree of systemic importance of the CCP in accordance with paragraph 2a, may conclude that a CCP is of such substantial systemic importance that compliance with the conditions set out in paragraph 2b does not sufficiently ensure the financial stability of the Union or of one or more of its Member States and should not therefore be recognised. In such a case, ESMA or the relevant central banks of issue shall recommend that the Commission adopt an implementing act confirming that that CCP should not be recognised in accordance with paragraph 2b.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b

Regulation (EU) No 648/2012
Article 25 – paragraph 2 c – subparagraph 2 a (new)

The Commission shall adopt a delegated act in accordance with Article 82 to further specify the criteria for considering that a CCP is of substantial systemic importance as referred to in the first subparagraph within [six months from the entry into force of this Regulation].

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point e

Regulation (EU) No 648/2012
Article 25 – paragraph 6 a

6a. The Commission ~~may~~shall adopt a delegated act in accordance with Article 82 to further specify the criteria referred to in points (a), (b) and (c) of paragraph 6.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point e

Regulation (EU) No 648/2012
Article 25 – paragraph 6 b – subparagraph 2

Where ESMA identifies any regulatory or supervisory development in those third countries that may impact the financial stability of the Union or for one or more of its Member States, it shall inform the Commission, the European Parliament and the Council confidentially and without delay.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 10

Regulation (EU) No 648/2012
Article 25a – paragraph 3 – subparagraph 1 – point b

(b) the modalities and conditions to carry out the assessment including the definition of categories of obligations by which the comparable compliance shall be assessed.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 10

Regulation (EU) No 648/2012
Article 25 b – paragraph 1 a (new)

1a. Where ESMA receives a notification under the third subparagraph of paragraph 1 or where a Tier 2 CCP fails to provide ESMA with the confirmation referred to in the second subparagraph of paragraph 1, the CCP shall be considered as no longer meeting the conditions for recognition pursuant to Article 25(2b) and the procedures set out in Article 25m(2), (3)and (4) shall therefore be applied.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 10

Regulation (EU) No 648/2012
Article 25 b – paragraph 2 – subparagraph 1

ESMA shall ~~prepare and submit draft decisions to~~consult the central bank of issue of the relevant currency referred to in Article 18(2)(h) before adopting any ~~decision~~request that appropriate action is taken within a set timeframe in relation to requirements pursuant to Articles 41, 44, 46, 50, and 54.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 10

Regulation (EU) No 648/2012
Article 25 b – paragraph 2 – subparagraph 2

ESMA shall obtain, in accordance with this paragraph, the consent of the relevant central bank of issue in respect of any aspect of those decisions relating to the carrying out of their monetary policy tasks. The consent of the central bank of issue referred to in the second subparagraph shall be deemed to be given unless it proposes amendments or objects to the draft decision within 15 calendar days after having been notified of the draft decision. Where the central bank of issue proposes amendments or objects to a draft decision, it shall provide full and detailed reasons, in writing.deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 10

Regulation (EU) No 648/2012
Article 25 b – paragraph 2 – subparagraph 3

Where the central bank of issue objects to a draft decision, ESMA shall not adopt that decision. Where the central bank of issue proposes amendments, ESMA may only adopt the decision as amended by that central bank of issue.deleted

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 10

Regulation (EU) No 648/2012
Article 25 b – paragraph 3

3. ESMA shall carry out assessments of the resilience of recogniszed CCPs to adverse market developments in accordance with Article 32(2) of Regulation (EU) No 1095/2010. Where, further to the review referred to in paragraph 5 of Article 25 and the confirmation referred in the second subparagraph of paragraph 1, ESMA determines that a Tier 1 CCP has become significant for the financial stability of the Union or for one or more of its Member States, and is therefore a Tier 2 CCP, Articles 25b to 25f shall start to apply to that CCP within six months following the completion of the review. Where, following the review referred to in paragraph 5 of Article 25, ESMA assesses that a Tier 2 CCP is no longer significant for the financial stability of the Union or for one or more of its Member States, and is therefore a Tier 1 CCP, Articles 25b to 25f shall cease to apply to that CCP.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 11 – point a

A CCP shall regularly review the models and parameters adopted to calculate its margin requirements, default fund contributions, collateral requirements and other risk control mechanisms. It shall subject the models to rigorous and frequent stress tests to assess their resilience in extreme but plausible market conditions and shall perform back tests to assess the reliability of the methodology adopted. The CCP shall obtain independent validation, shall inform its competent authority and ESMA of the results of the tests performed and shall obtain their validation of the competent authority in accordance with paragraphs (1a) and Article 21a before adopting any significant change to the models and parameters.

2018/04/13
Committee: ECON

Philippe LAMBERTS

Proposal for a regulation
Article 2 – paragraph 1 – point 11 a (new)

Regulation (EU) No 648/2012
Article 85 – paragraph 4 a (new)

11a. In Article 85, the following paragraph 4a is added: "4a. Until the entry into force of the [ESAs review] Regulation the duties of the Head and the Vice-Head of the CCP Supervisory Committee referred to in Article 22a (1) shall be carried out by, respectively, the Chairperson and the Executive Director of ESMA."

2018/04/13
Committee: ECON