What changed between the draft committee report and the plenary report

Added:3b. Within 15 working days of receipt of both the ESMA opinion and the college opinion, ESMA shall adopt its decision and transmit it to the applicant CCP, the CCP’s competent authority and the college.

Removed:Regulation (EU) No 648/2012

Added:Where ESMA does not agree with an opinion of ESMA or the college, including any conditions or recommendations contained therein, its decision shall contain full reasons and an explanation of any significant deviation from that opinion or conditions or recommendations.

Removed:Article 1 – paragraph 1 – point 18, Article 23b – paragraph 2 – introductory par: 2. Joint supervisory activities shall include, but are not limited to, all of the following:

Added:▌

Removed:Regulation (EU) No 648/2012

Added:(e) paragraph 4 is replaced by the following:

Removed:Article 1 – paragraph 1 – point 18, Article 23b – paragraph 2 – point a: (a) provide input to the competent authorities, ESMA and the colleges pursuant to Article 17a (2), (4) and (5)and Article 21(3) and Article 49(1b);

Added:‘4. ESMA shall, after duly considering the opinions of ESMA and the college referred to in paragraph 3, including any conditions or recommendations contained therein, grant authorisation as referred to in Articles 14 and Article 15(1), second subparagraph, point (a), only where it is fully satisfied that the applicant CCP:

Removed:Regulation (EU) No 648/2012

Added:(a) complies with all the requirements laid down in this Regulation including, where applicable, for the provision of clearing services or activities for non-financial instruments; and

Removed:Article 1 – paragraph 1 – point 18, Article 23b – paragraph 2 – point c: (c) participate in relevant supervisory assessments;

Added:(b) is notified as a system pursuant to Directive 98/26/EC.

Removed:Regulation (EU) No 648/2012

Added:Where an applicant CCP requests an extension of authorisation pursuant to Article 15, ESMA may rely on part of the assessment previously carried out pursuant to this Article to the extent that no change to such part would arise as a result of such request for extension of authorisation. The CCP shall confirm to ESMA that there is no change to the underlying facts of the part of the assessment on which ESMA chooses to rely.

Removed:Article 1 – paragraph 1 – point 18, Article 23b – paragraph 2 – point d: (d) contribute to the annual review and evaluation process, carried out by ESMA in accordance with Article 21(1).

Added:The CCP shall not be authorised where all the members of the college, excluding ESMA, reach a joint opinion by mutual agreement, pursuant to Article 19(1), that the CCP not be authorised. That opinion shall state in writing the full and detailed reasons why the college considers that the requirements laid down in this Regulation or other Union law are not met.

Removed:Regulation (EU) No 648/2012

Added:▌

Removed:Article 1 – paragraph 1 – point 18, Article 23b – paragraph 2 a (new): 2 a. ESMA may also coordinate, with input from the college, joint supervisory activities in areas not foreseen at the time of the previous annual review, notably in assessing the CCP’s compliance with the requirements of this Regulation and assessing any material supervisory concerns that may have arisen since.

Added:(f) paragraph 7 is replaced by the following:‘7. ESMA shall maintain a central database providing access to the CCP’s competent authority, ESMA, and the members of the college for that CCP

Removed:Regulation (EU) No 648/2012

Added:▌, to all documents registered within the database for that CCP. The CCP shall submit the application referred to in Article 14, Article 15(1), second subparagraph, point (a), and Article 49 via that database.

Change 6

Changed:ArticleQuestions 1submitted –by paragraphESMA 1and –the pointmembers 18,of Articlethe 23bcollege –during paragraphthe 3:risk 3.assessment ESMAperiod shallreferred beto in chargeArticle of17(3a) establishingshall andbe coordinatingincluded thein jointthe supervisorycentral activities.database.

Change 7

Removed:Change to reflect the move to ESMA as the supervisor of EU CCPs. See explanatory statement for greater details.

Added:The registered recipients shall upload promptly all documents they receive from the CCP in relation to an application pursuant to paragraph 1 and the central database shall automatically inform the registered recipients when changes have been made to its content. The central database shall contain all documents provided by an applicant CCP under paragraph 1 and all other documents relevant for the assessment by the CCP’s competent authority, ESMA and the college.

Removed:Regulation (EU) No 648/2012

Added:Members of the CCP Supervisory Committee shall also have access to the central database for the performance of their tasks pursuant to Article 24a(7). The Chair of the CCP Supervisory Committee may limit access to some of the documents for the members of the CCP Supervisory Committee referred to in Article 24a, points (c) and (d)(ii), where justified based on confidentiality concerns.’;

Removed:Article 1 – paragraph 1 – point 18, Article 23c – paragraph 1 – point ca (new): (c a) representatives of the central banks of issue of the currencies other than the euro in which the derivative contracts referred to in Article 7a(2) are denominated.

Added:(12) the following Articles 17a and 17b are inserted:

Removed:One of the JMM main tasks is to monitor the implementation of the requirements set out in the proposed Articles 7a and 7b. These requirements pertain to certain categories of derivative contracts denominated in euro, as well as in Polish zloty. Therefore, the participation of the relevant central banks in their capacity as central banks of issue is warranted.

Added:‘Article 17a

Removed:Regulation (EU) No 648/2012

Added:Non-objection procedure for granting a request for extension of activities or services

Removed:Article 1 – paragraph 1 – point 18, Article 23c – paragraph 2 – point c: (c) contribute to the development of Union-wide assessments of the resilience of CCPs focussing on horizontal credit and operational risks as well as liquidity risks concerning CCPs, clearing members and clients;

Added:1. The non-objection procedure shall apply to non-material changes to a CCP’s existing authorisation in any of the following cases where the proposed additional clearing service or activity does one or more of the following:

Removed:To allow the JMM to have a holistic perspective on risks affecting Union central clearing, in addition to liquidity risks, the JMM should also carry out Union-wide assessments of credit and operational risks concerning CCPs, clearing members and clients. Furthermore, the JMM’s task in relation to identifying concentration risk should include additional aspects of concentration risks that are relevant for central clearing (below).

Added:▌

Removed:Regulation (EU) No 648/2012

Added:(a) adds a new ▌ currency to a class of financial instruments already covered by the CCP’s authorisation for which the CCP does not have in place the relevant payment facility;

Removed:Article 1 – paragraph 1 – point 18, Article 23c – paragraph 2 – point d: (d) identify concentration risks, in particular in client clearing, due to the integration of Union financial markets, including where several CCPs, clearing members or clients use the same service providers, due to clients accessing the same CCP via different clearing members of that CCP, or due to clients maintaining large positions in markets of products that the CCP clears;

Added:(b) offers a new settlement or delivery mechanism or service which involves establishing links with a different securities settlement system, central security depositories or payment system that the CCP did not previously use;

Removed:See above.

Added:(c) offers contracts that cannot be liquidated in the same manner, such as via direct offer or auction, or together with contracts already cleared by the CCP.

Removed:Regulation (EU) No 648/2012

Added:2. The proposed additional clearing service or activity shall be considered a material change and subject to the procedure set out in Article 17 where it results in the CCP doing any of the following:

Removed:Article 1 – paragraph 1 – point 18, Article 23c – paragraph 3: 3. ESMA shall, in cooperation with the other bodies participating to the Joint Monitoring Mechanism, and after consulting relevant national competent authorities, should it deem it necessary, submit an annual report to the European Parliament, the Council and the Commission on the results of its activities pursuant to paragraph 2. / Where appropriate, this report shall include recommendations for potential Union-level action to address identified horizontal risks.

Added:(a) ▌significantly adapting its operational structure, at any point in the contract cycle:

Removed:Regulation (EU) No 648/2012

Added:(b) ▌offering a service or performing an activity relating to a new class of financial instruments or a new type of products or a new type of transactions;

Removed:Article 1 – paragraph 1 – point 18, Article 23c – paragraph 4 – point a: deleted

Added:(c) offering a service or performing an activity for contracts traded on a trading venue, where the CCP was previously providing a service or performing an activity for those contracts traded on a bilateral basis only;

Removed:Given the changes introduced on Article 7a and in relation to the role of ESMA in the supervisory framework and in the implementation of the AAR, point (a) of this Article should be removed.

Added:(d) offering a service or performing an activity for contracts traded on a bilateral basis, where the CCP was previously providing a service or performing an activity for those contracts on a trading venue only;

Removed:Regulation (EU) No 648/2012

Added:(e) taking into account material new contract specifications, such as a new option exercise styles within a category of contracts;

Removed:Article 1 – paragraph 1 – point 19, Article 24 – paragraph 4 – subparagraph 3 (new): Where a meeting is held following an emergency situation as specified in paragraph 1, point (c), the Chair shall always invite the relevant central banks of issue to participate to that meeting.

Added:(f) the introduction of materially new risks, linked to the different characteristics of the assets referenced.

Removed:Developments in financial markets could have direct implications for the performance of the responsibilities of the relevant central banks of issue, which should therefore always be invited to participate in the coordination meetings of the CCP Supervisory Committee in response to such emergencies.

Added:2a. ESMA shall, in close cooperation with the ESCB, develop draft regulatory technical standards further specifying the criteria referred to in paragraphs 1 and 2.