in force 2019-01-01
02012R0648-20170630 → 02012R0648-20190101
Amended by Regulation (EU) 2017/2402 32017R2402
Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012
detected 2026-08-13
3 provisions touched — 3 substantive, 0 date-only, 0 disputed · every change carries an explanation that passed its citation check
MODIFIED +197 −6 Art. 2 Definitions§
applies from: unchanged
The list of definitions gains two new entries following the existing one for senior management: a definition of covered bond referencing the requirements of Article 129 of Regulation (EU) No 575/2013, and a definition of covered bond entity referring to the covered bond issuer or cover pool of a covered bond.
The prior version's text ended with the definition of senior management and did not include any definition for covered bond or covered bond entity.
Cited: Art. 2, v2 · Art. 2, v1
text before / after
02012R0648-20170630 → 02012R0648-20190101
Article 2
Definitions
For the purposes of this Regulation, the following definitions shall apply:
(1) CCP means a legal person that interposes itself between the counterparties to the contracts traded on one or more financial markets, becoming the buyer to every seller and … 1,326 unchanged words … no such relationship during the five years preceding his membership of the board;
(29) senior management means the person or persons who effectively direct the business of the CCP or the trade repository, and the executive member or members of the board. board;
(30) covered bond means a bond meeting the requirements of Article 129 of Regulation (EU) No 575/2013;
(31) covered bond entity means the covered bond issuer or cover pool of a covered bond.
MODIFIED +2,159 −0 Art. 4 Clearing obligation§
applies from: unknown (the text changed beyond its dates, so no date that moved can be read as the application date)
dates added to the text: 2017-12-12, 2018-07-18
The AFTER text adds a new paragraph 5 stating that paragraph 1 does not apply to OTC derivative contracts concluded by covered bond entities in connection with a covered bond, or by securitisation special purpose entities in connection with a securitisation within the meaning of Regulation (EU) 2017/2402, subject to conditions on the securitisation meeting certain requirements, the derivative being used only to hedge interest rate or currency mismatches, and arrangements adequately mitigating counterparty credit risk.
The AFTER text also adds a new paragraph 6 directing the ESAs to develop draft regulatory technical standards on criteria for adequate mitigation of counterparty credit risk under paragraph 5, with submission to the Commission by 18 July 2018 and delegation of power to the Commission to adopt those standards.
The BEFORE text contains only paragraphs 1 through 4 and does not include these provisions on covered bonds or securitisation special purpose entities.
Cited: Art. 4, v2 · Art. 4, v1
text before / after
02012R0648-20170630 → 02012R0648-20190101
Article 4 Clearing obligation 1. Counterparties shall clear all OTC derivative contracts pertaining to a class of OTC derivatives that has been declared subject to the clearing obligation in accordance with Article 5(2), if those contracts fulfil both of the following conditions: (a) … 654 unchanged words … draft regulatory technical standards to the Commission by 30 September 2012. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.5. Paragraph 1 of this Article shall not apply with respect to OTC derivative contracts that are concluded by covered bond entities in connection with a covered bond, or by a securitisation special purpose entity in connection with a securitisation, within the meaning of Regulation (EU) 2017/2402 of the European Parliament and of the CouncilRegulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012 (OJ L 347, 28.12.2017, p. 35). provided that: (a) in the case of securitisation special purpose entities, the securitisation special purpose entity shall solely issue securitisations that meet the requirements of Article 18, and of Articles 19 to 22 or 23 to 26 of Regulation (EU) 2017/2402 (the Securitisation Regulation); (b) the OTC derivative contract is used only to hedge interest rate or currency mismatches under the covered bond or securitisation; and (c) the arrangements under the covered bond or securitisation adequately mitigate counterparty credit risk with respect to the OTC derivative contracts concluded by the covered bond entity or securitisation special purpose entity in connection with the covered bond or securitisation. 6. In order to ensure consistent application of this Article, and taking into account the need to prevent regulatory arbitrage, the ESAs shall develop draft regulatory technical standards specifying criteria for establishing which arrangements under covered bonds or securitisations adequately mitigate counterparty credit risk, within the meaning of paragraph 5. The ESAs shall submit those draft regulatory technical standards to the Commission by 18 July 2018. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in this paragraph in accordance with Articles 10 to 14 of Regulations (EU) No 1093/2010, (EU) No 1094/2010 or (EU) No 1095/2010.
MODIFIED +699 −127 Art. 11 Risk-mitigation techniques for OTC derivative contracts not cleared by a CCP§
applies from: unknown (the text changed beyond its dates, so no date that moved can be read as the application date)
dates added to the text: 2018-07-18
Paragraph 15 no longer includes a separate technical-standard item on the level of capital required for compliance with paragraph 4, and the remaining items are consolidated so that what was point (d) on impediments to fund transfers becomes point (c), with its wording changed from what should be considered to what is to be considered a practical or legal impediment.
A new paragraph is added after the list of specifications addressing how the level and type of collateral is to be determined for OTC derivative contracts concluded by covered bond entities or securitisation special purpose entities, referencing conditions in Article 4(5) and requirements in Articles 18 to 26 of Regulation (EU) 2017/2402.
The deadline for the ESAs to submit the common draft regulatory technical standards to the Commission is changed from 30 September 2012 to 18 July 2018, and the delegation of power to adopt those standards is now expressed as applying to this paragraph rather than to the first subparagraph.
Cited: Art. 11, v1 · Art. 11, v2
text before / after
02012R0648-20170630 → 02012R0648-20190101
Article 11
Risk-mitigation techniques for OTC derivative contracts not cleared by a CCP
1. Financial counterparties and non-financial counterparties that enter into an OTC derivative contract not cleared by a CCP, shall ensure, exercising due diligence, that appropriate procedures and arrangements are … 1,394 unchanged words … 1095/2010.
15. In order to ensure consistent application of this Article, the ESAs shall develop common draft regulatory technical standards specifying:
(a) the risk-management procedures, including the levels and type of collateral and segregation arrangements, required for compliance with paragraph 3;
(b) the level of capital required for compliance with paragraph 4;
(c) the procedures for the counterparties and the relevant competent authorities to be followed when applying exemptions under paragraphs 6 to 10;
(d) (c) the applicable criteria referred to in paragraphs 5 to 10 including in particular what should is to be considered as a practical or legal impediment to the prompt transfer of own funds and repayment of liabilities between the counterparties.
The level and type of collateral required with respect to OTC derivative contracts that are concluded by covered bond entities in connection with a covered bond, or by a securitisation special purpose entity in connection with a securitisation within the meaning of this Regulation and meeting the conditions of Article 4(5) of this Regulation and the requirements set out in Article 18, and in Articles 19 to 22 or 23 to 26 of Regulation (EU) 2017/2402 (the Securitisation Regulation) shall be determined taking into account any impediments faced in exchanging collateral with respect to existing collateral arrangements under the covered bond or securitisation.
The ESAs shall submit those common draft regulatory technical standards to the Commission by 30 September 2012. 18 July 2018.
Depending on the legal nature of the counterparty, power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph this paragraph in accordance with either Articles 10 to 14 of Regulations (EU) No 1093/2010, (EU) No 1094/2010 or (EU) No 1095/2010.
The full entry, with the citation mapping v1 = 02012R0648-20170630, v2 = 02012R0648-20190101, is committed at eu/32012R0648/CHANGELOG.md.