in force 2021-06-28 MODIFIED+215 −1,437§
Amended by Regulation (EU) 2019/2033 32019R2033 · Regulation (EU) 2019/876 32019R0876 · Regulation (EU) 2021/558 32021R0558 · Regulation (EU) 2020/873 32020R0873
applies from: unchanged
The provision no longer refers to a notification that a CCP has stopped calculating KCCP under Article 50b of Regulation (EU) No 648/2012, and the trigger condition is now stated as a single condition rather than two alternative conditions, with the actor changed from an institution to institutions.
The separate process for verifying the reasons why a CCP stopped calculating KCCP, including the competent authority's assessment and disclosure of reasons, and the option to apply Article 310 treatment, has been removed.
The remaining steps for institutions to take within three months, previously listed as four actions including ceasing to apply the Article 301(2) treatment, are now listed as three actions without that ceasing step, and the cross-references within the list of points have been adjusted accordingly.
Cited: Art. 311, v1 · Art. 311, v2
text before / after
02013R0575-20201228 → 02013R0575-20210629
Article 311
Own funds requirements for exposures to CCPs that cease to meet certain conditions
1. An institution Institutions shall apply the treatment set out in this Article where one or both of the following conditions have been met:
(a) the institution has received from a CCP a notification required by point (j)(ii) of Article 50b of Regulation (EU) No 648/2012 that the CCP has stopped calculating KCCP;
(b) it has become known to the institution, them, following a public announcement or notification from the competent authority of a CCP used by the institution those institutions or from that CCP itself, that the CCP will no longer comply with the conditions for authorisation or recognition, as applicable.
2. Where only the condition in point (a) of paragraph 1 has been met, the competent authority of the institution shall verify the reasons why the CCP has stopped calculating KCCP.
Where the competent authority considers that the reasons referred to in the first subparagraph are valid, it may permit institutions in its Member State to apply the treatment set out in Article 310 to their trade exposures and default fund contributions to that CCP. Where it grants such permission, it shall disclose the reasons for its decision.
Where the competent authority considers that the reasons referred to in the first subparagraph are not valid, all institutions in its Member State, irrespective of the treatment they chose in accordance with Article 301(2), shall apply the treatment set out in points (a) to (d) of paragraph 3 of this Article.
3. Where the condition in point (b) of paragraph 1 has been is met, irrespective of whether the condition in point (a) of that paragraph has been met or not, an institution institutions shall, within three months of becoming aware of the circumstance set out in point (b) of that paragraph arising, referred to therein, or at an earlier where time if the competent authority authorities of the institution requires it, those institutions so require, do the following with respect to its their exposures to that CCP:
(a) cease to apply the treatment it chose in accordance with Article 301(2);
(b) apply the treatment set out in point (b) of Article 306(1) to its their trade exposures to that CCP;
(c) (b) apply the treatment set out in Article 309 to its their pre-funded contributions to the default fund of that CCP and to its unfunded contributions to that CCP;
(d) (c) treat their exposures to that CCP, other than those the exposures listed in points (a) and (b) and (c) to that CCP of this paragraph, as exposures to a corporate in accordance with the Standardised Approach for credit risk as set out in Chapter 2.