emendrix

Annex III

European Market Infrastructure Regulation · 32012R0648 · every event for this act · on EUR-Lex

List of infringements referred to in Article 25j(1)

3 changes recorded across 3 events, newest first.

in force 2025-01-17 MODIFIED+172 −41

Amended by Regulation (EU) 2022/2554 32022R2554

applies from: unchanged

Point II(c), on infringing Article 26(3), now adds a reference to systems, resources or procedures including ICT systems managed in accordance with Regulation (EU) 2022/2554, a phrase absent from the earlier text.

Point III(a), on infringing Article 34(1), replaces the earlier reference to a disaster recovery plan with a response and recovery plan set up in accordance with Regulation (EU) 2022/2554, while the rest of the description of the business continuity policy's purpose is otherwise unchanged.

Cited: Annex III, v2 · Annex III, v1

text before / after

02012R0648-20241224 → 02012R0648-20250117

ANNEX III List of infringements referred to in Article 25j(1) I. Infringements relating to capital requirements: (a) a Tier 2 CCP infringes Article 16(1) by not having a permanent and available initial capital of at least EUR 7,5 million; (b) a Tier 2 CCP infringes Article 16(2) by not having capital, including retained earnings and reserves, which is proportionate to the risk stemming from its activities and at all times sufficient to ensure an orderly winding-down or restructuring of that activities over an appropriate time span and an adequate protection of the CCP against credit, counterparty, market, operational, legal and business risks which are not already covered by specific financial resources as referred to in Articles 41 to 44. II. Infringements relating to organisational requirements or conflicts of interest: (a) a Tier 2 CCP infringes Article 26(1) by not having robust governance arrangements which include a clear organisational structure with well-defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks to which it is or might be exposed and adequate internal control mechanisms, including sound administrative and accounting procedures or by becoming a clearing member, a client, or establishing indirect clearing arrangements with a clearing member with the aim to undertake clearing activities at another CCP, unless such clearing activities are undertaken under an interoperability arrangement under Title V or where conducting its investment policies under Article 47; (b) a Tier 2 CCP infringes Article 26(2) by not adopting policies and procedures which are sufficiently effective to ensure compliance including that of its managers and employees, with this Regulation; (c) a Tier 2 CCP infringes Article 26(3) by not maintaining or operating an organisational structure that ensures continuity and orderly functioning in the performance of its services and activities or by not employing appropriate and proportionate systems, resources or procedures; procedures including ICT systems managed in accordance with Regulation (EU) 2022/2554; (d) a Tier 2 CCP infringes Article 26(4) by not maintaining a clear separation between the reporting lines for risk management and those for other operations of the CCP; (e) a Tier 2 CCP infringes Article 26(5) by not adopting, implementing … 1,408 unchanged words … not offering the different levels of segregation referred to in that paragraph on reasonable commercial terms. III. Infringements relating to operational requirements: (a) a Tier 2 CCP infringes Article 34(1) by not establishing, implementing or maintaining an adequate business continuity policy and disaster response and recovery plan aimed at ensuring set up in accordance with Regulation (EU) 2022/2554, aiming to ensure the preservation of its functions, the timely recovery of operations and the fulfilment of the CCP's CCP’s obligations, which at least allows for the recovery of all transactions at the time of disruption to allow the CCP to continue to operate with certainty and to complete settlement on the scheduled date; (b) a Tier 2 CCP infringes Article … 2,627 unchanged words … due time with a supervisory measure required by a decision adopted by ESMA pursuant to Article 25q; (e) a Tier 2 CCP does not submit to an on-site inspection required by an inspection decision adopted by ESMA pursuant to Article 25h.

in force 2024-12-24 MODIFIED

Amended by Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2022/1671 32022R1671

applies from: unchanged

Section II(a) now also treats as an infringement a Tier 2 CCP becoming a clearing member, client, or setting up indirect clearing arrangements with a clearing member to undertake clearing activities at another CCP, with exceptions for interoperability arrangements under Title V and for investment activity under Article 47, and section II(ab) now additionally covers not having admission criteria ensuring that CCPs or clearing houses cannot be clearing members directly or indirectly, while a new point (aba) addresses accepting non-financial counterparties as clearing members without required demonstrations or reviews on margin and default fund contribution capacity.

In section III, point (h) replaces the reference to procyclicality safeguards with a duty to continuously monitor and revise margin levels for current market conditions, point (j) adds a prohibition on holding intraday variation margin payments instead of passing them on where possible, new point (oa) covers breaching an ESMA-imposed suspension of certain actions under Article 45a(1), a new point (pa) governs the acceptance of public or commercial bank guarantees under Article 46(1), and point (ai) now also covers making a material change to an approved interoperability arrangement under Title V without ESMA's prior approval.

In section IV, points (g) and (h) are reworded to refer to margin simulation at portfolio level with secured access and to clearer disclosure of initial margin model information, a new point (ha) covers failing to provide, or significantly delaying, information requested by a clearing member under Article 38(8), and in section V points (b) and (c) now name the actor as "a Tier 2 CCP" rather than simply "a CCP".

Cited: Annex III, v2 · Annex III, v1

text before / after, on the event page →

in force 2020-01-01 INSERTED

Amended by Regulation (EU) 2019/2099 32019R2099

applies from: unknown (an inserted provision states its own application date only in prose)

Sources disagree about the kind of change — they agree this provision changed and disagree about how: the text comparison called it INSERTED, the EU's own amendment metadata called it INSERTED and the amending act's instructions called it MODIFIED. All are shown; none is overruled.

A new Annex III has been added, setting out a categorized list of infringements referred to in Article 25j(1), grouped under headings covering capital requirements, organisational requirements or conflicts of interest, operational requirements, transparency and availability of information, and obstacles to supervisory activities.

Each listed item describes a specific infringement by a Tier 2 CCP, or in some cases any CCP, of a named article and paragraph of the Regulation, paired with a description of the conduct that constitutes that infringement.

Cited: Annex III, v2

text before / after, on the event page →