BETA

Activities of Peter SIMON related to 2016/0360A(COD)

Reports (1)

REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements and amending Regulation (EU) No 648/2012 PDF (2 MB) DOC (1 MB)

2016/11/22
Committee: ECON
Dossiers: 2016/0360A(COD)
Documents: PDF(2 MB) DOC(1 MB)

Amendments (28)

Peter SIMON, Udo BULLMANN

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b a (new)

Regulation (EU) No 575/2013
Article 6 – paragraph 4

(ba) Paragraph 4 is replaced by the following: "4. Credit institutions and investment firms that are authorised to provide the investment services and activities listed in points (3) and (6) of Section A of Annex I to Directive 2004/39/EC shall comply with the obligations laid down in Part Six on an individual basis. Credit institutions that are recognised as Central Counterparties Parties (CCPs) as laid down in Article 14 of Regulation (EU) No 648/2012 and that do not perform maturity transformation shall be exempted from the obligations laid down in Article 413(1) on an individual basis. Pending the report from the Commission in accordance with Article 508(3), competent authorities may exempt investment firms from compliance with the obligations laid down in Part Six taking into account the nature, scale and complexity of the investment firms' activities." ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=DE)~~Or. en

2018/02/02
Committee: ECON

Peter SIMON, Udo BULLMANN

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b a (new)

Regulation (EU) No 575/2013
Article 6 – paragraph 5

(ba) Paragraph 5 is replaced by the following "5. Institutions, except for investment firms referred to in Article 95(1) and Article 96(1) and institutions for which competent authorities have exercised the derogation specified in Article 7(1) or (3), shall comply with the obligations laid down in Part Seven on an individual basis.~~" (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=DE)~~ Credit institutions that are recognised as Central Counterparties (CCPs) as laid down in Article 14 of Regulation (EU) No 648/2012 shall be exempted from the obligations laid down in Part Seven on an individual basis." Or. en

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 13 a (new)

Regulation (EU) No 575/2013
Article 35

(13a) Article 35 is replaced by the following: "Article 35 Unrealised gains and losses measured at fair value 1. Except in the case of the items referred to in Article 33, institutions shall not make adjustments to remove from their own funds unrealised gains or losses on their assets or liabilities measured at fair value.~~" (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=~~ 2. Institutions shall remove from their own funds unrealised gains on their assets or liabilities measured at fair value as referred to in paragraph 3. 3. The EBA shall develop draft regulatory technical standards to specify the conditions in accordance with which the requirements shall be applied for the purposes of paragraph 1. The EBA shall submit those draft regulatory technical standards to the Commission by [one year after entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010." Or. en)

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 32

1a. An institution shall obtain the prior permission of the resolution authority to do either or both of the following: (a) effect the call, redemption, repayment or repurchase of eligible liabilities instruments that are not covered by paragraph 1, prior to the date of their contractual maturity; (b) effect the call, redemption, repayment or repurchase of instruments with a residual maturity below one year that previously qualified as eligible liabilities instruments and that are not covered by paragraph 1, where the institution on an individual basis or the resolution group of which the institution is a subsidiary on a consolidated basis, as applicable, does not comply with the minimum requirement for own funds and eligible liabilities. 1b. The competent authorities may substitute the prior permission requirement in paragraph 1 by a notification requirement if the reduction of the Common Equity Tier 1 capital, Additional Tier 1 capital and Tier 2 capital as applicable is immaterial.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 49

Regulation (EU) No 575/2013
Article 104 a – paragraph 2 – subparagraph 1

CApart from re-classifications directly enforced under Article 104, competent authorities shall grant permission to re- classify a trading book position as a non- trading book position or conversely a non- trading book position as a non-trading book for the purposes of determining their own funds requirements only where the institution has provided the competent authorities with written evidence that its decision to re-classify that position is the result of an exceptional circumstance that is consistent with the policies set out by the institution in accordance with paragraph 1. For that purpose, the institution shall provide sufficient evidence that the position no longer meets the condition to be classified as a trading book or non- trading book positions pursuant to Article 104.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 49

Regulation (EU) No 575/2013
Article 104 a – paragraph 5

5. The re-classification of a position in accordance with this article apart from re- classifications directly enforced under Article 104, shall be irrevocable.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 65

Regulation (EU) No 575/2013
Article 279 a – paragraph 1 – point a – definition of sign

sign = -1, where the transaction is a sold call option or a bought put option +1, where the transaction is a ~~call~~bought call or sold put option

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 65

Regulation (EU) No 575/2013
Article 279 a – paragraph 1 – point a – definition of type

type = -1, where the transaction is ~~a bough~~put option +1, where the transaction is a ~~sold~~call option

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 65

Regulation (EU) No 575/2013
Article 280 – definition of ϵ

ϵ= for the hedging sets established in accordance with Article 2757a(1), ϵ= for the hedging sets established in accordance with point (a) of Article 2757a(2), ϵ= for the hedging sets established in accordance with point (b) of Article 2757a(2).

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 c – paragraph 1 – introductory part

1. ~~Any~~The competent authorities may permit an institution to exclude certain foreign exchange risk positions which an institution has deliberately taken in order to hedge against the adverse effect of foreign exchange rates on its ratios referred to in Article 92(1) ~~may, subject to permission of the competent authorities, be excluded~~ from the calculation of own funds requirements for market risks, provided the following conditions are met: (See the ECB's opinion (CON/2017/47))

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 v – paragraph 2 – point a

(a) the instrument references an exotic underlying;. Instruments with an exotic underlying are trading book instruments with an underlying exposure that is not in the scope of the delta, vega or curvature risk treatments under the sensitivities-based method laid down in Section 2 or the default risk charge laid down in Section 5. Exotic underlying exposures include: longevity risk, weather, natural disasters and future realised volatility.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 v – paragraph 2 – point b

(b) the instrument bears other residual risks. Instruments bearing other residual risks are those that meet the following criteria: (i) An instrument is subject to vega and curvature risk own funds requirements in the sensitivities-based method laid down in Section 2 and generates pay-offs that cannot be replicated as a finite linear combination of plain-vanilla options with a single underlying equity price, commodity price, exchange rate, bond price, credit default swap price or interest rate swap; or (ii) An instrument is a securitisation position that belongs to the correlation trading portfolio, as referred to in Article 104 paragraph 7 to paragraph 9. Non- securitisation hedges that belong to the CTP shall not be considered.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 v – paragraph 5 – subparagraph 2

When developing those draft regulatory technical standards, EBA shall take the following elements into account: (a) exposures that are not in the scope of the delta, vega or curvauture risk tretaments under the sensitivities-based method laid down in Section 2 or the default risk charge laid down in Section 5. EBA shall at least examine whether longevity risk, weather, natural disasters and future realised volatility should be considered as exotic underlying exposures. (b) are exposed to other residual risks, EBA shall at least examine instruments that meet any of the following criteria: (i) and curvature risk own funds requiredeleted Exotic underlying shall include When defining which instruments An instruments in the sensitivities based method laid down in Section 2 and generates pay-offs that cannot be replicated as a finite linear combination of plain-vanilla options; (ii) position that belongs to the CTP, as referred to in Article 104(7) to (9). Non- securitisation hedges that belong to the CTP shall not be considered.s subject to vega An instrument is a securitisation

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 b a – paragraph 2 – introductory part

2. Institutions that have been granted the permission referred to in paragraph 1 to use their internal models for ~~each~~one or more trading desk shall report to the competent authorities as follows:

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 b a – paragraph 2 – point b

(b) for each desk for which this permission has been granted, the monthly own funds requirements for market risks calculated in accordance with Chapter 1a of this Title as if the institution not been granted the permission referred to in paragraph 1 and with all the positions attributed to the trading desk considered on a standalone basis as a separate portfolio. These calculations shall be reported to the competent authorities on a monthly basis.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 b f – paragraph 2 – point c

(c) there is a clear and apparent relationship between the value of the risk factor and each verifiable price identified by the institution in accordance with point (a), which means that any verifiable price that is observed for a transaction should be counted as an observation for all of the risk factors concerned.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 84

9. Institutions shall consider risk factors derived from a combination of modellable and non-modellable risk factors as non-modellable. Institutions may add modellable risk factors, and replace non-modellable risk factors by a basis between these additional modellable risk factors and these non- modellable risk factors. This basis will then be considered as a non-modellable risk factor.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 d – paragraph 2

2. By way of derogation from Article 428c(1), institutions shall take into account the ~~accounting~~market value of derivative positions on a net basis where those positions are included in the same netting set that fulfils the requirements set out in Articles 295, 296 and 297. Where that is not the case, institutions shall take into account the ~~accounting~~market value of derivative positions on a gross basis and they shall treat those derivatives positions as their own netting set for the purpose of Chapter 4 of this Title.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 a c – point f a (new)

(fa) assets used for providing clearing and settlement services of precious metals such as gold, silver, platinum and palladium;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 a c – point f b (new)

(fb) assets used for providing financing transactions of precious metals such as gold, silver, platinum and palladium of a term of 180 days or less;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 a f – point g

(g) physical traded commodities, including gold, but excluding commodity derivatives and assets held for transactions that are not covered by Article 428ac (fa) and (fb).

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 a r (new)

3a. Article 428ar 10% required stable funding factor 1. Unencumbered assets eligible as Level 1 extremely high quality covered bonds in accordance with point (f) of Article 10(1) of Delegated Regulation (EU) 2015/61 shall be subject to a 10% required stable funding factor, regardless of their compliance with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in Articles 8 and 17 of that Delegated Regulation. 2. For all netting sets of derivative contracts that are not subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 10% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 a – paragraph 1 – point f – point i

(i) ,the guarantee is provided by an e~~xport credit agency or by a~~ligible provider of unfunded credit protection in accordance with Articles 201 and 202, including export credit agencies or central governments;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 g a (new)

Article 429ga Average exposure values for the purposes of reporting and disclosure for large institutions (1) For the purposes of Articles 430 and 451, large institutions according to Article 4 paragraph 1 point 144b shall calculate: (a) the sum of the total exposure values of the assets falling within Article 429(4)(a) as they stand on each day of the reporting period divided by the number of days in the reporting period; (b) the sum of the total exposure values of the contracts falling within Article 429(4)(b) as they stand on the last day of each month in the reporting period divided by the total number of months in the reporting period; (c) the sum of the total exposure values of the add-ons for counterparty credit risk of Securities Financing Transactions falling within Article 429(4)(c) as they stand on the last day of each month in the reporting period divided by the total number of months in the reporting period; (d) the sum of the total exposure values of the regular-way purchases or sales falling within Article 429(4)e) as they stand on the last day of each month in the reporting period divided by the total number of months in the reporting period.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 116

Regulation (EU) No 575/2013
Article 438 – point b

(b) the composition ~~of the additional c~~in terms of Common eEquity Tier 1, Additional Tier 1 and Tier 2 of the additional own funds requirements based on the supervisory review process as referred to in point (a) of Article 104(1) of Directive 2013/36/EU; (See the ECB's opinion (CON/2017/46))

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 116

Regulation (EU) No 575/2013
Article 450 – paragraph 1 – point e a (new)

(ea) the exposure values calculated in accordance with Article 429(h) for large institutions according to Article 4 paragraph 1 point 144b

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 117 a (new)

Regulation (EU) No 575/2013
Article 458 – paragraph 2

(117a) In Article 458, paragraph 2 is replaced by the following: "2. Where the authority determined in accordance with paragraph 1 identifies changes in the intensity of macroprudential or systemic risk in the financial system with the potential to have serious negative consequences to the financial system and the real economy in a specific Member State and which that authority considers would better be addressed by means of stricter national measures, it shall notify the European Parliament, the Council, the Commission, the ESRB and EBA of that fact and submit relevant quantitative or qualitative evidence of all of the following: (a) the changes in the intensity of macroprudential or systemic risk; (b) the reasons why such changes could pose a threat to financial stability at national level; (c) a justification of why Articles 124 and 164 of this Regulation and Articles 101, 103, 104, 105, 133, and 136 of Directive 2013/36/EU cannot adequately address the macroprudential or systemic risk identified, taking into account the relative effectiveness of those measures; (d) draft national measures for domestically authorised institutions, or a subset of those institutions, intended to mitigate the changes in the intensity of risk and concerning: (i) the level of own funds laid down in Article 92; (ii) the requirements for large exposures laid down in Article 392 and Article 395 to 403; (iii) the public disclosure requirements laid down in Articles 431 to 455; (iv) the level of the capital conservation buffer laid down in Article 129 of Directive 2013/36/EU; (v) liquidity requirements laid down in Part Six; (vi) risk weights for targeting asset bubbles in the residential and commercial property sector; or (vii) intra financial sector exposures; (ed) an explanation as to why the draft measures are deemed by the authority determined in accordance with paragraph 1 to be suitable, effective and proportionate to address the situation; and (fe) an assessment of the likely positive or negative impact of the draft measures on the internal market based on information which is available to the Member State concerned. ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=FR)~~(f) an explanation as to how the outcome of the coordination mechanism between national designated authorities and the ECB as set out in Article 5(4) of Council Regulation (EU) No 1024/2013, have been considered in the draft national measures." (See the ECB's opinion (CON/2017/46) See Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions) Or. en

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 130 a (new)

Regulation (EU) No 575/2013
Article 513

(130a) Article 513 is replaced by the following: "Article 513 Macroprudential rules 1. By 30 June 20149, and every three years thereafter, the Commission shall, after consulting the ESRB and EBA, review whether the macroprudential rules contained in this Regulation and Directive 2013/36/EU are sufficient to mitigate systemic risks in sectors, regions and Member States including assessing: (a) whether the current macroprudential tools in this Regulation and Directive 2013/36/EU are effective, efficient and transparent; (b) whether the coverage and the possible degrees of overlap between different macroprudential tools for targeting similar risks in this Regulation and Directive 2013/36/EU are adequate and, if appropriate, propose new macroprudential rules; (c) how internationally agreed standards for systemic institutions interacts with the provisions in this Regulation and Directive 2013/36/EU and, if appropriate, propose new rules taking into account those internationally agreed standards. 2. By 31 December 20149, and every three years thereafter, the Commission shall, on the basis of the consultation with the ESRB and EBA, report to the European Parliament and the Council on the assessment referred to in paragraph 1 and, where appropriate, submit a legislative proposal to the European Parliament and the Council." ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=FR)~~Or. en

2018/02/05
Committee: ECON