RECOMMENDATION FOR A DECISION to raise no objections to the Commission delegated regulation of 4 October 2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty
19.10.2016 - (C(2016)06329 – 2016/2930(DEA))
Committee on Economic and Monetary Affairs
Rapporteur: Werner Langen
B8‑1124/2016
Draft European Parliament decision to raise no objections to the Commission delegated regulation of 4 October 2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty
(C(2016)06329 – 2016/2930(DEA))
The European Parliament,
– having regard to the Commission delegated regulation (C(2016)06329),
– having regard to the Commission’s letter of 4 October 2016 asking Parliament to declare that it will raise no objections to the delegated regulation,
– having regard to the letter from the Committee on Economic and Monetary Affairs to the Chair of the Conference of Committee Chairs of 13 October 2016,
– having regard to Article 290 of the Treaty on the Functioning of the European Union,
– having regard to Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories[1] (European Market Infrastructure Regulation – EMIR), and in particular Article 11(15) thereof,
– having regard to Article 13 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC[2], of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC[3] and of Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC[4],
– having regard to the draft regulatory technical standards submitted by the European Supervisory Authorities (ESAs – the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) on 8 March 2016 pursuant to Article 11(15) of Regulation (EU) No 648/2012,
– having regard to the recommendation for a decision by the Committee on Economic and Monetary Affairs,
– having regard to Rule 105(6) of its Rules of Procedure,
A. whereas EMIR lays down clearing and bilateral risk-management requirements for over-the-counter (OTC) derivative contracts, reporting requirements for derivative contracts and uniform requirements for the performance of activities of central counterparties (CCPs) and trade repositories;
B. whereas Article 11(15) of EMIR provides that the ESAs shall develop common draft regulatory technical standards (RTSs) specifying the risk-management procedures, including the levels and type of collateral and segregation arrangements required for compliance with Article 11(3) of EMIR, the procedures to be followed by the counterparties and the relevant competent authorities when applying exemptions under Article 11(6) to (10) of EMIR and the applicable criteria referred to in Article 11(5) to (10) of EMIR, including in particular what should be considered as a practical or legal impediment to the prompt transfer of own funds and repayment of liabilities between the counterparties;
C. whereas Article 11(15) of EMIR empowers the Commission to adopt those RTSs, depending on the legal nature of the counterparty, in accordance with Articles 10 to 14 of either Regulation (EU) No 1093/2010 (the EBA Regulation), Regulation (EU) No 1094/2010 (the EIOPA Regulation) or Regulation (EU) No 1095/2010 (the ESMA Regulation);
D. whereas the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) released their joint global framework establishing margin requirements for non-centrally cleared derivatives in September 2013, and revised it in March 2015;
E. whereas the ESAs submitted the draft RTSs to the Commission on 8 March 2016;
F. whereas the Commission notified the ESAs on 28 July 2016 of its intention to endorse the draft RTSs subject to a number of changes in accordance with Article 10(1) of the EBA, EIOPA and ESMA Regulations;
G. whereas the ESAs submitted a formal opinion, in accordance with Article 10(1) of the EBA, EIOPA and ESMA Regulations, and revised draft RTSs to the Commission on 8 September 2016;
H. whereas the Commission adopted the delegated regulation on 4 October 2016;
I. whereas the delegated regulation may only enter into force at the end of the scrutiny period of Parliament and the Council if no objection has been expressed by either Parliament or the Council, or if, before the expiry of that period, both Parliament and the Council have informed the Commission that they will not object;
J. whereas the scrutiny period provided for under Article 13(1) of the EBA, EIOPA and ESMA Regulations is three months from the date of notification of the RTSs; whereas this scrutiny period therefore expires on 4 January 2017;
K. whereas the calendar of implementation of the margin requirements for non-centrally cleared derivatives was agreed at international level (BCBS and IOSCO); whereas the Union, while having missed the agreed date of 1 September 2016 for the first stage of implementation, can still have its rules in place in time for the second deadline of 1 March 2017, when a large number of financial counterparties and non-financial groups should start exchanging margins;
L. whereas an early non-objection should therefore be declared as soon as possible with a view to allowing the Union to fulfil its international commitment and to allowing counterparties to prepare for the new requirements with sufficient prior notice; whereas such an approach will contribute to providing legal certainty for market participants in both the Union and third countries as soon as possible;
1. Declares that it has no objections to the delegated regulation;
2. Instructs its President to forward this decision to the Council and the Commission.