# Official Journal C 310/2012

| | ISSN 1977-091X
  doi:10.3000/1977091X.C_2012.310.eng |
| --- | --- |
| Official Journal
  of the European Union | C 310 |
| | |
| English edition | Information and Notices | Volume 5513 October 2012 |

ISSN 1977-091X

doi:10.3000/1977091X.C_2012.310.eng

Official Journal

of the European Union

C 310

English edition

Information and Notices

Volume 5513 October 2012

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| Notice No | Contents | page |
| --- | --- | --- |
| | II   Information |
| | INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | European Commission |
| 2012/C 310/01 | Monetary Agreement between the European Union and the Principality of Monaco | 1 |

Notice No

Contents

page

II   Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

2012/C 310/01

Monetary Agreement between the European Union and the Principality of Monaco

1

| | III   Preparatory acts |
| --- | --- |
| | European Central Bank |
| 2012/C 310/02 | Opinion of the European Central Bank of 1 August 2012 on a proposal for a regulation on improving securities settlement in the European Union and on central securities depositories (CON/2012/62) | 12 |

III   Preparatory acts

European Central Bank

2012/C 310/02

Opinion of the European Central Bank of 1 August 2012 on a proposal for a regulation on improving securities settlement in the European Union and on central securities depositories (CON/2012/62)

12

| | IV   Notices |
| --- | --- |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | Council |
| 2012/C 310/03 | List of national football information points (NFIPs) | 32 |
| | European Commission |
| 2012/C 310/04 | Euro exchange rates | 36 |

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

Council

2012/C 310/03

List of national football information points (NFIPs)

32

European Commission

2012/C 310/04

Euro exchange rates

36

| | V   Announcements |
| --- | --- |
| | ADMINISTRATIVE PROCEDURES |
| | European Commission |
| 2012/C 310/05 | Call for expressions of interest in membership in the multisectoral and independent expert panel to provide advice on effective ways of investing in health | 37 |
| | PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON COMMERCIAL POLICY |
| | European Commission |
| 2012/C 310/06 | Notice to economic operators — New round of requests for the suspension of the autonomous Common Customs Tariff duties on certain industrial and agricultural products | 40 |
| | PROCEDURES RELATING TO THE IMPLEMENTATION OF COMPETITION POLICY |
| | European Commission |
| 2012/C 310/07 | Prior notification of a concentration (Case COMP/M.6721 — First Reserve Management/SK Capital Partners/TPC) — Candidate case for simplified procedure (
  1
  ) | 41 |

V   Announcements

ADMINISTRATIVE PROCEDURES

European Commission

2012/C 310/05

Call for expressions of interest in membership in the multisectoral and independent expert panel to provide advice on effective ways of investing in health

37

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON COMMERCIAL POLICY

European Commission

2012/C 310/06

Notice to economic operators — New round of requests for the suspension of the autonomous Common Customs Tariff duties on certain industrial and agricultural products

40

PROCEDURES RELATING TO THE IMPLEMENTATION OF COMPETITION POLICY

European Commission

2012/C 310/07

Prior notification of a concentration (Case COMP/M.6721 — First Reserve Management/SK Capital Partners/TPC) — Candidate case for simplified procedure (
  1
  )

1

41

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| | (1)   Text with EEA relevance |

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(1)   Text with EEA relevance

1

| EN | |
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EN

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II Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

| 13.10.2012 | EN | Official Journal of the European Union | C 310/1 |
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13.10.2012

EN

Official Journal of the European Union

C 310/1

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MONETARY AGREEMENT

between the European Union and the Principality of Monaco

2012/C 310/01

THE EUROPEAN UNION, represented by the French Republic and the European Commission,

and

THE PRINCIPALITY OF MONACO,

Whereas:

| (1) | On 1 January 1999, the euro replaced the currency of each Member State participating in the third stage of Economic and Monetary Union, among which France, pursuant to Council Regulation (EC) No 974/98 of 3 May 1998. |
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(1)

On 1 January 1999, the euro replaced the currency of each Member State participating in the third stage of Economic and Monetary Union, among which France, pursuant to Council Regulation (EC) No 974/98 of 3 May 1998.

| (2) | The French Republic and the Principality of Monaco were linked before the creation of the euro by bilateral agreements in the monetary and banking fields, most notably through the Franco-Monegasque Agreement of 14 April 1945 concerning foreign exchange control and by the Neighbourhood Agreement of 18 May 1963. |
| --- | --- |

(2)

The French Republic and the Principality of Monaco were linked before the creation of the euro by bilateral agreements in the monetary and banking fields, most notably through the Franco-Monegasque Agreement of 14 April 1945 concerning foreign exchange control and by the Neighbourhood Agreement of 18 May 1963.

| (3) | The Principality of Monaco has been authorised to use the euro as its official currency since 1 January 1999 by virtue of the Council Decision of 31 December 1998 (1). |
| --- | --- |

(3)

The Principality of Monaco has been authorised to use the euro as its official currency since 1 January 1999 by virtue of the Council Decision of 31 December 1998 (1).

| (4) | The European Union, represented by the French Republic in association with the European Commission and the ECB, concluded, on 24 December 2001, a Monetary Agreement with the Principality of Monaco. Said Agreement resulted in an amendment of the previously established Neighbourhood Agreement between the French Republic and the Principality of Monaco. |
| --- | --- |

(4)

The European Union, represented by the French Republic in association with the European Commission and the ECB, concluded, on 24 December 2001, a Monetary Agreement with the Principality of Monaco. Said Agreement resulted in an amendment of the previously established Neighbourhood Agreement between the French Republic and the Principality of Monaco.

| (5) | In accordance with the present Monetary Agreement, the Principality of Monaco has the right to continue using the euro as its official currency and to grant legal tender status to euro banknotes and euro coins. The rules of the European Union listed in Annex of the present Agreement shall be applied within the territory of the Principality of Monaco under the conditions and within the limitations foreseen under the present Agreement. |
| --- | --- |

(5)

In accordance with the present Monetary Agreement, the Principality of Monaco has the right to continue using the euro as its official currency and to grant legal tender status to euro banknotes and euro coins. The rules of the European Union listed in Annex of the present Agreement shall be applied within the territory of the Principality of Monaco under the conditions and within the limitations foreseen under the present Agreement.

| (6) | The Principality of Monaco should ensure that European Union rules on banknotes and coins denominated in euros are applicable within its territory; these coins and banknotes shall be appropriately protected against counterfeiting; it is important that the Principality of Monaco undertakes all measures necessary to combat counterfeiting and cooperates with the European Commission, the ECB, the French Republic and the European Police Office (Europol) in this domain. |
| --- | --- |

(6)

The Principality of Monaco should ensure that European Union rules on banknotes and coins denominated in euros are applicable within its territory; these coins and banknotes shall be appropriately protected against counterfeiting; it is important that the Principality of Monaco undertakes all measures necessary to combat counterfeiting and cooperates with the European Commission, the ECB, the French Republic and the European Police Office (Europol) in this domain.

| (7) | The present Agreement shall not confer any right upon credit institutions or, where appropriate, any other financial institutions authorised to carry out their activities in the territory of the Principality of Monaco in matters related to the freedom of establishment or the provision of services in the European Union. The present Agreement shall not confer any right upon credit institutions or, where appropriate, any other financial institutions authorised to carry out their activities in the territory of the European Union in matters related to the freedom of establishment or the provision of services in the Principality of Monaco. |
| --- | --- |

(7)

The present Agreement shall not confer any right upon credit institutions or, where appropriate, any other financial institutions authorised to carry out their activities in the territory of the Principality of Monaco in matters related to the freedom of establishment or the provision of services in the European Union. The present Agreement shall not confer any right upon credit institutions or, where appropriate, any other financial institutions authorised to carry out their activities in the territory of the European Union in matters related to the freedom of establishment or the provision of services in the Principality of Monaco.

| (8) | This Agreement does not impose any obligation on the ECB or national central banks to include the financial instruments of the Principality of Monaco in the list(s) of securities eligible for monetary policy operations of the European System of Central Banks. |
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(8)

This Agreement does not impose any obligation on the ECB or national central banks to include the financial instruments of the Principality of Monaco in the list(s) of securities eligible for monetary policy operations of the European System of Central Banks.

| (9) | Without prejudice to Article 11, paragraph six of this Agreement, the Principality of Monaco maintains certain institutions exclusively involved in portfolio management for third parties or the transmission of instructions within its territory whose services are exclusively regulated by Monegasque legislation. These institutions shall not have access to the payment and securities settlement systems. |
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(9)

Without prejudice to Article 11, paragraph six of this Agreement, the Principality of Monaco maintains certain institutions exclusively involved in portfolio management for third parties or the transmission of instructions within its territory whose services are exclusively regulated by Monegasque legislation. These institutions shall not have access to the payment and securities settlement systems.

| (10) | In the interest of maintaining the historical links existing between the French Republic and the Principality of Monaco and the principles set forth on the Monetary Agreement of 24 December 2001, the European Union and the Principality of Monaco shall cooperate in good faith to ensure the effective implementation of the present Agreement in its entirety. |
| --- | --- |

(10)

In the interest of maintaining the historical links existing between the French Republic and the Principality of Monaco and the principles set forth on the Monetary Agreement of 24 December 2001, the European Union and the Principality of Monaco shall cooperate in good faith to ensure the effective implementation of the present Agreement in its entirety.

| (11) | A Joint Committee composed of representatives of the Principality of Monaco, the French Republic, the European Commission, and the ECB has been established in order to examine the application of this Agreement; decide, under the conditions presented in Article 3, the annual ceiling for coin issuance; examine the adequacy of the minimum proportion of coins to be introduced at the face value; and assess the measures taken by the Principality of Monaco for implementing relevant EU legislation. |
| --- | --- |

(11)

A Joint Committee composed of representatives of the Principality of Monaco, the French Republic, the European Commission, and the ECB has been established in order to examine the application of this Agreement; decide, under the conditions presented in Article 3, the annual ceiling for coin issuance; examine the adequacy of the minimum proportion of coins to be introduced at the face value; and assess the measures taken by the Principality of Monaco for implementing relevant EU legislation.

| (12) | The Court of Justice of the European Union shall be the body in charge of settling any disputes which may arise from the application of this Agreement, in cases in which no agreement has been reached by the parties to this Agreement, |
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(12)

The Court of Justice of the European Union shall be the body in charge of settling any disputes which may arise from the application of this Agreement, in cases in which no agreement has been reached by the parties to this Agreement,

HAVE AGREED AS FOLLOWS:

Article 1

The Principality of Monaco shall be entitled to use the euro as its official currency in accordance with Regulations (EC) No 1103/97 and (EC) No 974/98 as amended. The Principality of Monaco shall grant legal tender status to euro banknotes and coins.

Article 2

The Principality of Monaco shall issue neither banknotes nor coins, as long as the conditions for issuance have not been agreed to with the European Union. The conditions for issuing euro coins as from 1 January 2011 are laid down in the following Articles.

Article 3

1.   The annual ceiling (in value terms) for the issuance of euro coins by the Principality of Monaco shall include:

| | A fixed part, whose initial amount for 2011 is set at EUR 2 340 000. |
| --- | --- |

A fixed part, whose initial amount for 2011 is set at EUR 2 340 000.

| | A variable part, corresponding in value terms to the average per capita coin issuance of the French Republic in the year n-1 multiplied by the number of inhabitants of the Principality of Monaco. |
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A variable part, corresponding in value terms to the average per capita coin issuance of the French Republic in the year n-1 multiplied by the number of inhabitants of the Principality of Monaco.

The Joint Committee may revise annually the fixed part with a view to taking into account both inflation — on the basis of HICP inflation of France in the year n-1 — and possible significant trends affecting the euro coins collector market.

2.   The Principality of Monaco may also issue a special commemorative coin and/or collector coins to commemorate special or important events for the Principality. In case this special issuance brings the overall issuance above the ceiling laid down in paragraph 1, the value of that issuance shall be accounted for using the remaining part of the ceiling of the previous year and/or deducted from the ceiling of the following year.

Article 4

1.   Euro coins issued by the Principality of Monaco shall be identical to those issued by the Member States of the European Union which have adopted the euro as far as the face value, legal tender status, technical characteristics, artistic features of the common side and shared artistic features of the national side are concerned.

2.   The Principality of Monaco shall communicate, in advance, a draft of the national sides of its euro coins to the European Commission, which shall check their compliance with the EU rules.

Article 5

The French Republic shall place the Hôtel de la Monnaie de Paris at the disposal of the Principality of Monaco to conduct the minting of coins by the Principality of Monaco, in accordance with Article 18 of the Neighbourhood Agreement established between the French Republic and the Principality of Monaco on 18 May 1963.

Article 6

1.   The volume of euro coins issued by the Principality of Monaco shall be added to the total volume of euro coins issued by the French Republic for the purposes of approval by the European Central Bank of the total volume issued by the French Republic, in accordance with Article 128(2) of the Treaty on the Functioning of the European Union.

2.   No later than 1 September each year, the Principality of Monaco shall notify the French Republic of the total volume and face value of the euro coins that it intends to issue during the following year. The Principality of Monaco shall also inform the Commission of the intended conditions of issuance of these coins.

3.   The Principality of Monaco shall communicate the information referred to in paragraph 2 for the year 2011 as of the signing of this Agreement.

4.   Without prejudice to the issuance of collector coins, at least 80 % of euro coins intended for circulation shall be put into circulation at face value each year by the Principality of Monaco. The Joint Committee shall evaluate the adequacy of this proportion every five years and may decide to increase this proportion.

Article 7

1.   The Principality of Monaco may issue euro collector coins. These coins shall be included in the annual ceiling stipulated in Article 3. The issuance of euro collector coins by the Principality of Monaco shall be in accordance with the European Union guidelines laid down for euro collector coins, which, inter alia, require the adoption of technical characteristics, artistic features and denominations that enable euro collector coins to be distinguished from coins intended for circulation.

2.   Collector coins issued by the Principality of Monaco shall not be legal tender in the European Union.

Article 8

The Principality of Monaco shall take all necessary measures to combat the counterfeiting of euro banknotes and coins and cooperate with the European Commission, the ECB, the French Republic and the European Police Office (Europol) in this domain.

Article 9

The Principality of Monaco shall undertake to:

| (a) | Apply all appropriate EU legal acts or rules listed in Annex A relevant to the application of Article 11(2), including those which are directly applied by the French Republic or those measures taken by the French Republic for the transposition of the relevant legal acts or rules in accordance with the modalities set out in Articles 11(2) and 11(3); |
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(a)

Apply all appropriate EU legal acts or rules listed in Annex A relevant to the application of Article 11(2), including those which are directly applied by the French Republic or those measures taken by the French Republic for the transposition of the relevant legal acts or rules in accordance with the modalities set out in Articles 11(2) and 11(3);

| (b) | Adopt measures to comply with the legal acts or rules listed in Annex B, which are either directly applied or transposed by the Member States, in accordance with the modalities set out in Articles 11(4), 11(5), and 11(6) of this Agreement, in the following fields:






  — | banking and financial legislation, as well as the prevention of money laundering in the domains and in accordance with the modalities set out in Article 11, |
| --- | --- | --- |

(b)

Adopt measures to comply with the legal acts or rules listed in Annex B, which are either directly applied or transposed by the Member States, in accordance with the modalities set out in Articles 11(4), 11(5), and 11(6) of this Agreement, in the following fields:

—

banking and financial legislation, as well as the prevention of money laundering in the domains and in accordance with the modalities set out in Article 11,

| — | prevention of fraud and counterfeiting of cash and non-cash means of payment, medals and tokens. |
| --- | --- |

—

prevention of fraud and counterfeiting of cash and non-cash means of payment, medals and tokens.

| (c) | Apply directly on its territory all legal acts and rules of the European Union related to euro banknotes and coins as well as those measures necessary for the use of the euro as a single currency adopted under Article 133 of the Treaty on the Functioning of the European Union, except in those cases for which this Agreement foresees different rules. The European Commission, via the Joint Committee, shall keep the Monegasque authorities informed of legal acts or rules relevant hereto. |
| --- | --- |

(c)

Apply directly on its territory all legal acts and rules of the European Union related to euro banknotes and coins as well as those measures necessary for the use of the euro as a single currency adopted under Article 133 of the Treaty on the Functioning of the European Union, except in those cases for which this Agreement foresees different rules. The European Commission, via the Joint Committee, shall keep the Monegasque authorities informed of legal acts or rules relevant hereto.

Article 10

1.   Credit institutions and, where appropriate, other financial institutions authorised to carry out their activities in the territory of the Principality of Monaco may, under the conditions stipulated in Article 11, participate in the interbank settlement and payment and securities settlement systems of the European Union under the same terms and conditions as credit institutions and, where relevant, other financial institutions established in the territory of the French Republic, under the proviso that said institutions fulfil the conditions required for access to those systems.

2.   Credit institutions and, where appropriate, other financial institutions located in the territory of the Principality of Monaco are subject, under the conditions stipulated in Article 11, to the same measures adopted by the Banque de France in implementation of ECB provisions laying down the monetary policy instruments and procedures as those credit institutions and other financial institutions located in the territory of the French Republic.

Article 11

1.   The legal acts adopted by the Council for the application of Article 129(4) of the Treaty on the Functioning of the European Union, in conjunction with Articles 5(4), 19(1), or 34(3) of the Statues of the European System of Central Banks and the European Central Bank (hereinafter: the Statues), by the ECB in application of the above-mentioned legal acts adopted by the Council or pursuant to Articles 5, 16, 18, 19, 20, 22, or 34(3) of the Statues, or by the Banque de France for the purpose of implementing the legal acts adopted by the ECB, shall apply to the territory of the Principality of Monaco. This shall also apply to all possible amendments of these acts.

2.   The Principality of Monaco shall apply the same rules as those established in the French Republic for the purposes of transposing European Union legal acts concerning the activities and prudential regulation of credit institutions and the prevention of systemic risks to payment and securities settlement systems contained in Annex A. To that effect, the Principality of Monaco shall apply, firstly, the provisions of the French Monetary and Financial Code relative to the activities and monitoring of credit institutions, in addition to implementing regulations in accordance with the Franco-Monegasque Agreement of 14 April 1945 concerning foreign exchange control and to the Exchanges of Letters between the Government of the French Republic and the Government of His Serene Highness the Prince of Monaco of 18 May 1963, 10 May 2001, 8 November 2005, and 20 October 2010, concerning banking regulations, and, secondly, the provisions of the French Monetary and Financial Code concerning the prevention of systemic risks to payment and securities settlement systems.

3.   The list of texts contained in Annex A shall be amended by the Commission upon amendment of any relevant texts and also each time a new text is adopted by the European Union, taking into account the date of entry into force and of transposition of the texts. The legal acts and rules enumerated in Annex A shall be applied by the Principality of Monaco as of the date of their inclusion in French law, pursuant to the provisions mentioned in paragraph 2. At the time of each amendment, the Commission shall publish the updated list of texts in the Official Journal of the European Union (OJEU).

4.   The Principality of Monaco shall adopt measures equivalent to those adopted by the Member States to apply the legal acts of the European Union enumerated in Annex B necessary for the implementation of this Agreement. The Joint Committee referred to in Article 13, via a procedure to be defined by the Joint Committee, shall examine the equivalence between the measures adopted by the Principality of Monaco and those adopted by Member States in the application of the above-mentioned acts.

5.   Notwithstanding the procedure foreseen in paragraph 9 of this Article, the list of texts contained in Annex B shall be amended by a decision of the Joint Committee. To this effect, the Commission shall inform the Principality of Monaco as soon as it adopts a new piece of legislation in one of the domains covered by this Agreement and if it determines that said legislation should be included in the list of acts contained in Annex B. The Principality of Monaco will receive a copy of the proposals made by the institutions of the European Union during the various stages of the legislative process. The Commission shall publish the updated Annex B in the Official Journal of the European Union (OJEU).

The Joint Committee shall also decide on appropriate and reasonable deadlines for implementation, by the Principality of Monaco, of new legal acts and rules added in Annex B.

6.   The Principality of Monaco shall adopt measures equivalent in effect to the Directives of the European Union contained in Annex B in relation to the combat of money laundering pursuant to the recommendations of the Financial Action Task Force (FATF). The Joint Committee shall decide, on a case-by-case basis, whether regulations of the European Union related to the combat of money laundering should be included in Annex B. The financial intelligence unit of the Principality of Monaco and those of the Member States of the European Union should actively pursue and coordinate their efforts to combat money laundering.

7.   Credit institutions and, where appropriate, other financial institutions and reporting agents located within the territory of the Principality of Monaco shall be subject to sanctions and disciplinary procedures in case of infringement of the legal acts and rules referred to in the preceding paragraphs. The Principality of Monaco shall oversee the enforcement of sanctions imposed by the competent authorities, in accordance with the provisions of the present Article.

8.   The legal acts referred to in the first paragraph of this Article shall enter into force in the Principality of Monaco on the same day as in the European Union for those acts published in the OJEU, and on the same day as in France for those acts that are published in the Official Journal of the French Republic (OJFR). The legal acts of general application referred to in the first paragraph of the present Article and not published in the OJEU or of the OJFR shall enter into force as of communication to the relevant Monegasques authorities. The legal acts of an individual nature referred to in the first paragraph of the present Article shall apply as of the date of notification to the party concerned.

9.   Before granting authorisation to investment firms seeking to establish themselves in the territory of the Principality of Monaco for the purposes of offering investment services other than investment management for third parties and the transmission of orders, and without prejudice to the obligations laid down in paragraph 6 of the present Article, the Principality of Monaco shall undertake measures equivalent in effect to existing European Union legal acts governing these services. By way of derogation from the procedure laid down in paragraph 5 of the present Article, these acts shall be integrated into the list of acts contained in Annex B by the Commission.

Article 12

1.   The Court of Justice of the European Union shall have exclusive competence for settling any dispute between the parties of this Agreement which may arise from any infringement of this Agreement, and which has not been solved within the Joint Committee. The parties to this Agreement commit to do whatever is necessary to first resolve any dispute within the confines of the Joint Committee.

2.   If no amicable conclusion can be reached, the European Union — acting on a recommendation from the Commission, after consultation with the French Republic and the ECB on matters falling within its field of competence — or the Principality of Monaco may bring the matter before the Court of Justice, if the Joint Committee determines that one of the parties has not fulfilled an obligation or provision under the present Agreement. The judgment of the Court shall be binding on the Parties, which shall take the necessary measures to comply with the judgment within a period to be decided by the Court in its judgment.

3.   In the event that the European Union or the Principality of Monaco fails to take the necessary measures to comply with the judgment within the specified period, the other Party may immediately terminate the Agreement.

4.   All questions concerning the validity of decisions of the institutions or bodies of the European Union implemented by virtue of this Agreement shall fall within the exclusive competence of the Court of Justice. In particular, any natural or legal person domiciled in the territory of the Principality of Monaco may exercise any right of appeal available to any natural or legal person located in the territory of the French Republic against legal acts addressed to them, whatever their form or nature.

Article 13

1.   The Joint Committee shall be composed of representatives of the Principality of Monaco and of the European Union. It shall exchange views and information and adopt decisions under Articles 3, 6, and 11. It shall similarly examine the measures taken by the Principality of Monaco and try to resolve any disputes arising from the application of this Agreement. It shall adopt its own Rules of Procedure.

2.   The delegation of the European Union shall be composed of representatives of the French Republic (holding the chairmanship), the European Commission, together with representatives of the European Central Bank. The delegation of the European Union shall adopt its rules and procedures by consensus.

3.   The Monegasque delegation shall be composed of representatives designated by the Ministry of State and shall be presided by the Counsellor of Government for Finance and the Economy or his/her representative.

4.   The Joint Committee shall meet at least once a year, as well as at such time as one of the members determines a meeting is necessary to ensure the functioning of the present Agreement, notably taking into account the relevant European, French, or Monegasque legislative developments. The chair of the Joint Committee shall rotate on an annual basis between the chair of the delegation of the European Union and the chair of the delegation of Monaco. The Joint Committee shall adopt its decisions unanimously.

5.   The Secretariat of the Joint Committee shall be composed of two persons appointed, one by the chair of the delegation of Monaco, and the other by the chair of the delegation of the European Union. The Secretariat shall also participate in meetings of the Joint Committee.

Article 14

Each Party may terminate this Agreement subject to one year’s notice.

Article 15

This Agreement shall be concluded and signed in French and, where necessary, may be translated into other languages of the European Union. Only the French version shall be considered authentic.

Article 16

The present Monetary Agreement shall enter into force on 1 December 2011.

Article 17

The Monetary Agreement of 24 December 2001 shall be repealed on the date on which this Agreement enters into force. References to the Agreement of 24 December 2001 shall be understood as meaning references to this Agreement.

Done at Brussels on in three originals in French.

For the European Union

Olli REHN

Vice-President of the European Commission and responsible for Economic and Monetary Affairs

François BAROIN

Minster of Economic Affairs, Finance Industry for the French Republic

For the Principality of Monaco

Michel ROGER

Minister of State

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(1)  OJ L 30, 4.2.1999, p. 31.

1

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ANNEX A

Banking and financial legislation

Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions: as regards the provisions applicable to the credit institutions (OJ L 372, 31.12.1986, p. 1)

amended by:

Directive 2001/65/EC of the European Parliament and of the Council of 27 September 2001 amending Directives 78/660/EEC, 83/349/EEC and 86/635/EEC as regards the valuation rules for the annual and consolidated accounts of certain types of companies as well as of banks and other financial institutions (OJ L 283, 27.10.2001, p. 28)

Directive 2003/51/EC of the European Parliament and of the Council of 18 June 2003 amending Directives 78/660/EEC, 83/349/EEC, 86/635/EEC and 91/674/EEC on the annual and consolidated accounts of certain types of companies, banks and other financial institutions and insurance undertakings (OJ L 178, 17.7.2003, p. 16)

Directive 2006/46/EC of the European Parliament and of the Council of 14 June 2006 amending Council Directives 78/660/EEC on the annual accounts of certain types of companies, 83/349/EEC on consolidated accounts, 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions and 91/674/EEC on the annual accounts and consolidated accounts of insurance undertakings (OJ L 224, 16.8.2006, p. 1)

Council Directive 89/117/EEC of 13 February 1989 on the obligations of branches established in a Member State of credit institutions and financial institutions having their head offices outside that Member State regarding the publication of annual accounting documents (OJ L 44, 16.2.1989, p. 40)

Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions: as regards the provisions applicable to the credit institutions (OJ L 177, 30.6.2006, p. 201)

amended by:

Directive 2008/23/EC of the European Parliament and of the Council of 11 March 2008 amending Directive 2006/49/EC on the capital adequacy of investment firms and credit institutions, as regards the implementing powers conferred on the Commission (OJ L 76, 19.3.2008, p. 54)

Commission Directive 2009/27/EC of 7 April 2009 amending certain Annexes to Directive 2006/49/EC of the European Parliament and of the Council as regards technical provisions concerning risk management (OJ L 94, 8.4.2009, p. 97)

Directive 2009/111/EC of the European Parliament and of the Council of 16 September 2009 amending Directives 2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management (OJ L 302, 17.11.2009, p. 97)

Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies (OJ L 329, 14.12.2010, p. 3)

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, p. 120)

Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes (OJ L 135, 31.5.1994, p. 5)

amended by:

Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005 amending Council Directives 73/239/EEC, 85/611/EEC, 91/675/EEC, 92/49/EEC and 93/6/EEC and Directives 94/19/EC, 98/78/EC, 2000/12/EC, 2001/34/EC, 2002/83/EC and 2002/87/EC in order to establish a new organisational structure for financial services committees (OJ L 79, 24.3.2005, p. 9)

Directive 2009/14/EC of the European Parliament and of the Council of 11 March 2009 amending Directive 94/19/EC on deposit-guarantee schemes as regards the coverage level and the payout delay (OJ L 68, 13.3.2009, p. 3)

Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45)

amended by:

Directive 2009/44/EC of the European Parliament and of the Council of 6 May 2009 amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims (OJ L 146, 10.6.2009, p. 37)

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, p. 120)

Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (OJ L 177, 30.6.2006, p. 1)

amended by:

Commission Directive 2007/18/EC of 27 March 2007 amending Directive 2006/48/EC of the European Parliament and of the Council as regards the exclusion or inclusion of certain institutions from its scope of application and the treatment of exposures to multilateral development banks (OJ L 87, 28.3.2007, p. 9)

Directive 2007/44/EC of the European Parliament and of the Council of 5 September 2007 amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector (OJ L 247, 21.9.2007, p. 1)

Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC (OJ L 319, 5.12.2007, p. 1), concerning the provisions of Titles I and II of Directive 2007/64/EC

Directive 2008/24/EC of the European Parliament and of the Council of 11 March 2008 amending Directive 2006/48/EC relating to the taking up and pursuit of the business of credit institutions, as regards the implementing powers conferred on the Commission (OJ L 81, 20.3.2008, p. 38)

Commission Directive 2009/83/EC of 27 July 2009 amending certain Annexes to Directive 2006/48/EC of the European Parliament and of the Council as regards technical provisions concerning risk management (OJ L 196, 28.7.2009, p. 14)

Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7), with the exceptions of Title III of Directive 2009/110/EC

Directive 2009/111/EC of the European Parliament and of the Council of 16 September 2009 amending Directives 2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management (OJ L 302, 17.11.2009, p. 97)

Commission Directive 2010/16/EU of 9 March 2010 amending Directive 2006/48/EC of the European Parliament and of the Council as regards the exclusion of a certain institution from the scope of application (OJ L 60, 10.3.2010, p. 15)

Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies (OJ L 329, 14.12.2010, p. 3)

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, p. 120)

Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding up of credit institutions (OJ L 125, 5.5.2001, p. 15)

Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43)

amended by:

Directive 2009/44/EC of the European Parliament and of the Council of 6 May 2009 amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims (OJ L 146, 10.6.2009, p. 37)

Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council (OJ L 35, 11.2.2003, p. 1)

amended by:

Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005 amending Council Directives 73/239/EEC, 85/611/EEC, 91/675/EEC, 92/49/EEC and 93/6/EEC and Directives 94/19/EC, 98/78/EC, 2000/12/EC, 2001/34/EC, 2002/83/EC and 2002/87/EC in order to establish a new organisational structure for financial services committees (OJ L 79, 24.3.2005, p. 9)

Directive 2008/25/EC of the European Parliament and of the Council of 11 March 2008 amending Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate, as regards the implementing powers conferred on the Commission (OJ L 81, 20.3.2008, p. 40)

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, p. 120)

Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC, for the provisions applicable to credit institutions and with the exception of Articles 15, 31 to 33 and Title III (OJ L 145, 30.4.2004, p. 1)

Corrigendum to Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (OJ L 145, 30.4.2004) (OJ L 45, 16.2.2005, p. 18)

amended by:

Directive 2006/31/EC of the European Parliament and of the Council of 5 April 2006 amending Directive 2004/39/EC on markets in financial instruments, as regards certain deadlines (OJ L 114, 27.4.2006, p. 60)

Directive 2007/44/EC of the European Parliament and of the Council of 5 September 2007 amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector (OJ L 247, 21.9.2007, p. 1)

Directive 2008/10/EC of the European Parliament and of the Council of 11 March 2008 amending Directive 2004/39/EC on markets in financial instruments, as regards the implementing powers conferred on the Commission (OJ L 76, 19.3.2008, p. 33)

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, p. 120)

supplemented by:

Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that Directive (OJ L 241, 2.9.2006, p. 1)

Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OJ L 241, 2.9.2006, p. 26)

Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7), with the exception of Title III of Directive 2009/110/EC

Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC: concerning the provisions of Titles I and II of Directive 2007/64/EC (OJ L 319, 5.12.2007, p. 1)

Corrigendum to Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC (OJ L 319, 5.12.2007) (OJ L 187, 18.7.2009, p. 5)

amended by:

Directive 2009/111/EC of the European Parliament and of the Council of 16 September 2009 amending Directives 2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management (OJ L 302, 17.11.2009, p. 97)

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 (OJ L 331, 15.12.2010, p. 12)

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ANNEX B

Prevention of money laundering

Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (OJ L 309, 25.11.2005, p. 15)

Amended by:

Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC (OJ L 319, 5.12.2007, p. 1), concerning the provisions of Titles I and II of Directive 2007/64/EC.

Directive 2008/20/EC of the European Parliament and of the Council of 11 March 2008 amending Directive 2005/60/EC on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, as regards the implementing powers conferred on the Commission (OJ L 76, 19.3.2008, p. 46)

Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7), with the exception of Title III of Directive 2009/110/EC.

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010, p. 120)

Supplemented by:

Commission Directive 2006/70/EC of 1 August 2006 laying down implementing measures for Directive 2005/60/EC of the European Parliament and of the Council as regards the definition of politically exposed person and the technical criteria for simplified customer due diligence procedures and for exemption on grounds of a financial activity conducted on an occasional or very limited basis (OJ L 214, 4.8.2006, p. 29)

Regulation (EC) No 1781/2006 of the European Parliament and of the Council of 15 November 2006 on information on the payer accompanying transfers of funds (OJ L 345, 8.12.2006, p. 1)

Regulation (EC) No 1889/2005 of the European Parliament and of the Council of 26 October 2005 on controls of cash entering or leaving the Community (OJ L 309, 25.11.2005, p. 9)

Prevention of fraud and counterfeiting

Council Framework Decision 2001/413/JHA of 28 May 2001 combating fraud and counterfeiting of non-cash means of payment (OJ L 149, 2.6.2001, p. 1)

Council Regulation (EC) No 2182/2004 of 6 December 2004 concerning medals and tokens similar to euro coins (OJ L 373, 21.12.2004, p. 1)

Amended by:

Council Regulation (EC) No 46/2009 of 18 December 2008 amending Regulation (EC) No 2182/2004 concerning medals and tokens similar to euro coins (OJ L 17, 22.1.2009, p. 5)

Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting (OJ L 181, 4.7.2001, p. 6)

Amended by:

Council Regulation (EC) No 44/2009 of 18 December 2008 amending Regulation (EC) No 1338/2001 laying down measures necessary for the protection of the euro against counterfeiting (OJ L 17, 22.1.2009, p. 1)

Council Framework Decision 2000/383/JHA of 29 May 2000 on increasing protection by criminal penalties and other sanctions against counterfeiting in connection with the introduction of the euro (OJ L 140, 14.6.2000, p. 1)

Amended by:

Council Framework Decision 2001/888/JHA of 6 December 2001 amending Framework Decision 2000/383/JHA on increasing protection by criminal penalties and other sanctions against counterfeiting in connection with the introduction of the euro (OJ L 329, 14.12.2001, p. 3)

Council Decision 2001/887/JHA of 6 December 2001 on the protection of the euro against counterfeiting (OJ L 329, 14.12.2001, p. 1)

Council Decision 2009/371/JHA of 6 April 2009 establishing the European Police Office (Europol) (OJ L 121, 15.5.2009, p. 37)

Council Decision 2001/923/EC of 17 December 2001 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ L 339, 21.12.2001, p. 50)

Amended by:

Council Decision 2006/75/EC of 30 January 2006 amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ L 36, 8.2.2006, p. 40)

Council Decision 2006/849/EC of 20 November 2006 amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ L 330, 28.11.2006, p. 28)

Banking and Financial Legislation

Directive 97/9/EC of the European Parliament and of the Council of 3 March 1997 on investment compensation schemes (OJ L 84, 26.3.1997, p. 22)

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III Preparatory acts

European Central Bank

| 13.10.2012 | EN | Official Journal of the European Union | C 310/12 |
| --- | --- | --- | --- |

13.10.2012

EN

Official Journal of the European Union

C 310/12

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OPINION OF THE EUROPEAN CENTRAL BANK

of 1 August 2012

on a proposal for a regulation on improving securities settlement in the European Union and on central securities depositories

(CON/2012/62)

2012/C 310/02

Introduction and legal basis

On 3 April 2012 the European Central Bank (ECB) received a request from the Council of the European Union for an opinion on a proposal for a regulation on improving securities settlement in the European Union and on central securities depositories (CSDs) and amending Directive 98/26/EC (1) (hereinafter the ‘proposed regulation’). On 19 April 2012 the ECB received a request from the European Parliament for an opinion on the proposed regulation.

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union since the proposed regulation contains provisions which relate to the ECB’s definition and implementation of the monetary policy of the euro area and promotion of the smooth operation of payment systems under Article 127(2) of the Treaty, as well as the ECB’s contribution to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system under Article 127(5) of the Treaty. Furthermore, Article 22 of the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’) provides that the ECB and the national central banks may provide facilities, and the ECB may make regulations, to ensure efficient and sound clearing and payment systems within the Union and with other countries. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

General observations

Together with Directive 2004/39/EC (2) and the proposal for a regulation on OTC derivatives, central counterparties and trade repositories (3), the proposed regulation will be part of the regulatory framework for market infrastructures and trading venues. Because of their size, complexity and systemic interconnectedness, CSDs are deemed to be systemically important (4) and therefore require a comprehensive regulatory framework for supervision and oversight that combines micro- and macro-prudential tools. The ECB strongly supports the Commission’s proposal to strengthen the legal framework applicable to CSDs and to harmonise the rules underpinning the operation, authorisation and supervision of CSDs, as well as those relating to the issuance, holding and transfer of securities through such CSDs in the Union (5).

The Eurosystem is developing TARGET2-Securities (T2S) with the aim of delivering a single settlement engine for Europe. Also in this context, the ECB strongly supports the proposed regulation, which will enhance the legal and operational conditions for cross-border settlement in the Union in general and in T2S in particular. In this respect, the ECB recommends that the proposed regulation, and the corresponding implementing acts, is adopted prior to the launch of T2S planned for June 2015.

1.   Scope of the regulation

The proposed regulation lays down uniform requirements for the settlement of financial instruments (6). Under Directive 2004/39/EC (7)‘financial instruments’ includes transferable securities, money market instruments, units in collective investment undertakings, derivative contracts, financial contracts for differences and emission allowances. The ECB notes in this respect that the proposed regulation does not define ‘financial instruments’ and that some parts of it apply only to ‘securities’ or transferable securities (8), whereas others also apply to money market instruments (9), units in collective investment undertakings and emission allowances (10). In addition, the proposed regulation defines CSDs as legal persons that operate a securities settlement system and perform at least one other core service listed in the Annex (11). The ECB is of the view that all three core services should be regulated. Against this backdrop, for the sake of legal clarity, the ECB recommends further clarifying the scope of the proposed regulation, both as regards the type of instruments it applies to and the definition of CSD.

The definition of CSD should be amended to avoid regulatory arbitrage stemming from the creation by a CSD of two or three legal entities to perform different core activities without being subject to the Regulation applicable to CSDs. The ECB considers that each legal person offering any of the three core services indicated in Section A of the Annex should be subject to the Regulation.

2.   Cooperation between authorities

| 2.1. | The proposed regulation grants a predominant role to competent supervisory authorities and a supporting role to the members of the European System of Central Banks (ESCB) as relevant authorities with respect to CSDs. Taking into account the role of central banks as overseers and/or central banks of issue, as well as the fact that central banks use CSDs’ services for the settlement of monetary policy operations, the proposed regulation should ensure that the powers of competent authorities and the European Securities and Markets Authority (ESMA) are complemented and balanced by an adequate involvement of the members of the ESCB. Central banks and securities regulators in the Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (IOSCO) have recognised the importance of regulation, supervision and oversight in financial market infrastructures, including CSDs (12). The ECB considers that the proposed regulation should be consistent with the CPSS-IOSCO principles. An effective and close cooperation should be fostered between competent authorities and the members of the ESCB, both from an oversight perspective and as central banks of issue and without prejudice to central bank powers (13). |
| --- | --- |

2.1.

The proposed regulation grants a predominant role to competent supervisory authorities and a supporting role to the members of the European System of Central Banks (ESCB) as relevant authorities with respect to CSDs. Taking into account the role of central banks as overseers and/or central banks of issue, as well as the fact that central banks use CSDs’ services for the settlement of monetary policy operations, the proposed regulation should ensure that the powers of competent authorities and the European Securities and Markets Authority (ESMA) are complemented and balanced by an adequate involvement of the members of the ESCB. Central banks and securities regulators in the Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (IOSCO) have recognised the importance of regulation, supervision and oversight in financial market infrastructures, including CSDs (12). The ECB considers that the proposed regulation should be consistent with the CPSS-IOSCO principles. An effective and close cooperation should be fostered between competent authorities and the members of the ESCB, both from an oversight perspective and as central banks of issue and without prejudice to central bank powers (13).

| 2.2. | The ECB further notes that the proposed regulation already identifies a number of areas of cooperation and suggests some additional areas where it considers that this ESMA-ESCB involvement is also required. Moreover, the ECB stresses the need for joint ESMA-ESCB work on the development of draft technical standards. This should ensure that members of the ESCB do not need to develop additional, and potentially different, requirements in oversight measures, including legal acts. In addition, it would avoid the need for the continual assessment of CSDs taking part in the settlement of monetary policy operations against user standards (14) which would otherwise be required to meet the ESCB legal obligations. Timely and adequate exchange of necessary information, including for financial stability, oversight and statistical purposes, is also of particular importance in this context. |
| --- | --- |

2.2.

The ECB further notes that the proposed regulation already identifies a number of areas of cooperation and suggests some additional areas where it considers that this ESMA-ESCB involvement is also required. Moreover, the ECB stresses the need for joint ESMA-ESCB work on the development of draft technical standards. This should ensure that members of the ESCB do not need to develop additional, and potentially different, requirements in oversight measures, including legal acts. In addition, it would avoid the need for the continual assessment of CSDs taking part in the settlement of monetary policy operations against user standards (14) which would otherwise be required to meet the ESCB legal obligations. Timely and adequate exchange of necessary information, including for financial stability, oversight and statistical purposes, is also of particular importance in this context.

| 2.3. | The draft regulation should therefore provide for cooperation rules enabling the competent and relevant authorities to fulfil their responsibilities both domestically and in a cross-border context in accordance with the CPSS-IOSCO principles (15). The proposed regulation should facilitate comprehensive supervision and oversight in a cross-border context given the expected development of cross-border operations and settlement, as well as links between CSDs, a feature which will be facilitated and even fostered by the launch of the T2S common platform. Competent authorities should have the option of deciding on the appropriate form of cooperation arrangements. Against this backdrop, the option to establish colleges of authorites could be envisaged in particular when a CSD engages in cross-border activity through a subsidiary or a branch or where the provision of cross-border services becomes substantial (16). |
| --- | --- |

2.3.

The draft regulation should therefore provide for cooperation rules enabling the competent and relevant authorities to fulfil their responsibilities both domestically and in a cross-border context in accordance with the CPSS-IOSCO principles (15). The proposed regulation should facilitate comprehensive supervision and oversight in a cross-border context given the expected development of cross-border operations and settlement, as well as links between CSDs, a feature which will be facilitated and even fostered by the launch of the T2S common platform. Competent authorities should have the option of deciding on the appropriate form of cooperation arrangements. Against this backdrop, the option to establish colleges of authorites could be envisaged in particular when a CSD engages in cross-border activity through a subsidiary or a branch or where the provision of cross-border services becomes substantial (16).

3.   Macro-prudential oversight

It has been recognised that robust financial market infrastructures, including securities settlement systems, are an essential contribution to financial stability by reducing systemic risk (17). The ECB notes that macro-prudential oversight by the European Systemic Risk Board and by relevant national authorities as appropriate should be performed without prejudice to the respective powers of the members of the ESCB.

4.   Central bank money settlement

The proposed regulation allows CSDs to offer cash settlement in commercial bank money when settlement in central bank money is not practical and available (18). This is in line with the CPSS-IOSCO principles and the ESCB-CESR recommendations (19), evidencing that central bank liquidity and commercial bank money are not equivalent options in terms of risk. Where a CSD is allowed to offer cash settlement in commercial bank money, it should be required to establish and monitor adherence to strict criteria for the credit institution acting as settlement bank (20). The ECB further welcomes that the proposed regulation does not regulate access to central bank credit, including emergency liquidity assistance, which is a prerogative of central banks and is directly linked to monetary policy.

5.   CSDs and banking type of ancillary services

| 5.1. | The proposed regulation provides that CSDs cannot themselves provide any banking type of ancillary services and that they should instead be authorised to designate one or more credit institutions to perform certain banking type of ancillary services defined in the proposed regulation. However, by way of derogation and taking account of certain safeguards, some CSDs may be granted a limited authorisation to perform such services (21). |
| --- | --- |

5.1.

The proposed regulation provides that CSDs cannot themselves provide any banking type of ancillary services and that they should instead be authorised to designate one or more credit institutions to perform certain banking type of ancillary services defined in the proposed regulation. However, by way of derogation and taking account of certain safeguards, some CSDs may be granted a limited authorisation to perform such services (21).

| 5.2. | This requires a careful review to ensure consistency with the Union competition rules and systemic macroprudential oversight and banking legislative frameworks (22), as well as an appropriate allocation of tasks between the CSDs’ supervisory authorities and the banking supervisory authorities. In this respect and as pointed out in a previous opinion the ECB favours the systematic involvement of the European Banking Authority (EBA) to undertake any prior technical analysis regarding Union banking legislation (23).
  More specifically, the proposed regulation distinguishes between banking type of ancillary services for the participants of a securities settlement system related to settlement service on the one hand, and banking type of ancillary services related to other core or ancillary services on the other hand (24). It also empowers the Commission to adopt delegated acts to specify these ancillary services (25). The ECB is of the view that the above distinction is not clear and that the banking type of ancillary services referred to should be aligned as much as possible to the terminology in European banking legislation. |
| --- | --- |

5.2.

This requires a careful review to ensure consistency with the Union competition rules and systemic macroprudential oversight and banking legislative frameworks (22), as well as an appropriate allocation of tasks between the CSDs’ supervisory authorities and the banking supervisory authorities. In this respect and as pointed out in a previous opinion the ECB favours the systematic involvement of the European Banking Authority (EBA) to undertake any prior technical analysis regarding Union banking legislation (23).

More specifically, the proposed regulation distinguishes between banking type of ancillary services for the participants of a securities settlement system related to settlement service on the one hand, and banking type of ancillary services related to other core or ancillary services on the other hand (24). It also empowers the Commission to adopt delegated acts to specify these ancillary services (25). The ECB is of the view that the above distinction is not clear and that the banking type of ancillary services referred to should be aligned as much as possible to the terminology in European banking legislation.

| 5.3. | The framework for the provision of ancillary banking services should be guided by an appropriate mitigation of risks whilst safeguarding the efficiency of CSDs in providing their services. Given the crucial nature of this issue, a more comprehensive assessment of the various options for the provision of ancillary banking services may be warranted. Such an assessment would be of assistance in fully determining (a) different risks, including resolution-based risks as well as legal, credit, liquidity, operational and business risks, and (b) efficiency profiles inherent to these options and it would help to define the safest and most efficient model. The ECB is prepared to contribute to such an assessment.
  Furthermore, there should be no uncertainty as to the exact scope of the ancillary banking services which designated credit institutions would be authorised to perform (26), the prudential requirements to which they would be subject, and their degree of autonomy vis-à-vis the banking legislative framework (27). |
| --- | --- |

5.3.

The framework for the provision of ancillary banking services should be guided by an appropriate mitigation of risks whilst safeguarding the efficiency of CSDs in providing their services. Given the crucial nature of this issue, a more comprehensive assessment of the various options for the provision of ancillary banking services may be warranted. Such an assessment would be of assistance in fully determining (a) different risks, including resolution-based risks as well as legal, credit, liquidity, operational and business risks, and (b) efficiency profiles inherent to these options and it would help to define the safest and most efficient model. The ECB is prepared to contribute to such an assessment.

Furthermore, there should be no uncertainty as to the exact scope of the ancillary banking services which designated credit institutions would be authorised to perform (26), the prudential requirements to which they would be subject, and their degree of autonomy vis-à-vis the banking legislative framework (27).

| 5.4. | The proposed regulation limits the services to be provided by a designated credit institution that belongs to the same group as the CSD (28). The ECB understands that this limitation is driven by risk considerations, in particular the avoidance of spillover effects. The ECB recommends extending this limitation to all credit institutions providing banking services listed in Section C of the Annex for the participants of a securities settlement system having regard to the potential adverse effects on the ability of the CSD to continue to perform its functions, in particular those based on a delivery versus payment mechanism, in the case of a resolution or insolvency of the credit institution. |
| --- | --- |

5.4.

The proposed regulation limits the services to be provided by a designated credit institution that belongs to the same group as the CSD (28). The ECB understands that this limitation is driven by risk considerations, in particular the avoidance of spillover effects. The ECB recommends extending this limitation to all credit institutions providing banking services listed in Section C of the Annex for the participants of a securities settlement system having regard to the potential adverse effects on the ability of the CSD to continue to perform its functions, in particular those based on a delivery versus payment mechanism, in the case of a resolution or insolvency of the credit institution.

| 5.5. | Lastly, the ECB considers that the proposed procedure for granting a derogation is rather complex and could be streamlined to achieve the necessary degree of certainty and uniformity. In particular, the adoption of objective criteria, including quantitative criteria where possible, in addition to the necessary qualitative criteria provided for in the proposal, should be ensured for determining whether a derogation may be granted or not. |
| --- | --- |

5.5.

Lastly, the ECB considers that the proposed procedure for granting a derogation is rather complex and could be streamlined to achieve the necessary degree of certainty and uniformity. In particular, the adoption of objective criteria, including quantitative criteria where possible, in addition to the necessary qualitative criteria provided for in the proposal, should be ensured for determining whether a derogation may be granted or not.

6.   Consistency with global standards for CSDs

The proposed regulation recognises that the Regulation should follow the existing recommendations developed by CPSS-IOSCO (29). Nevertheless, there are some inconsistencies between the CPSS-IOSCO principles and the proposed regulation, which the ECB recommends addressing. For example, requirements for tiered participation (30) are not addressed by the proposed regulation. Furthermore, the proposed regulation mentions the need to manage risks stemming from interdependencies (31) only in the context of operational risk (32). There are also inconsistencies concerning the management of liquidity risk (33), i.e. the proposed regulation does not distinguish between deferred net settlement systems (DNS) that provide a settlement guarantee and those DNS that do not. This is not in line with the CPSS-IOSCO principles which require DNS providing a settlement guarantee to cover credit and liquidity exposures fully, while DNS without a settlement guarantee need to cover the credit exposures to the largest two participants and their affiliates and the liquidity exposure to the largest participant and its affiliates.

7.   Outsourcing to public entities

The proposed regulation introduces requirements that CSDs have to fulfil when outsourcing part of their activities (34). An exemption is made for situations where a CSD outsources certain of its operations to public entities, provided that an appropriate legal, regulatory and operational framework governs this arrangement. The ECB notes that this exemption would cover the current T2S project undertaken by the Eurosystem. The ECB welcomes this exemption, which takes into account that such outsourcing may result in significant benefits for the economy, contributes to the performance of Eurosystem tasks and is subject to a framework agreement containing safeguards (35).

8.   Conflict of laws

The proposed regulation provides as a general rule that any question with respect to proprietary aspects in relation to securities held by a CSD is governed by the law of the country where the securities account is maintained (36). While such a general rule is consistent with the approach followed in other Union legal acts of applying the law of the place of the relevant intermediary to proprietary aspects in relation to securities (37), the ECB strongly objects to the introduction of the additional conflict of laws rules which would be inconsistent with existing Union legislation and would affect legal certainty (38).

In addition, and as pointed out in a previous opinion, while a clear and simple conflict of laws rule for all aspects of book-entry securities is important for the efficient and secure cross-border holding and transfer of financial instruments, the practical application of a single conflict of laws regime for cross-border securities clearing and settlement in the Union continues to reveal differences between Member States concerning the interpretation of ‘location of an account’ (39). In this respect, the ECB considers it necessary to harmonise the various Union legal frameworks for holding and disposing of securities and the exercise of rights attached to securities in line with the final report of the Legal Certainty Group (40).

9.   Specific regime for resolution of CSDs

As the proposed regulation does not contain a specific, comprehensive regime for the resolution of CSDs, the ECB recommends adopting such a regime.

Where the ECB recommends that the proposed regulation is amended, specific drafting proposals are set out in the Annex accompanied by explanatory text to this effect.

Done at Frankfurt am Main, 1 August 2012.

The President of the ECB

Mario DRAGHI

---

(1)  COM(2012) 73 final.

1

(2)  Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (OJ L 145, 30.4.2004, p. 1). Currently under review. See the proposal for a directive of the European Parliament and of the Council on markets in financial instruments repealing Directive 2004/39/EC of the European Parliament and of the Council, COM(2011) 656 final, and the proposal for a regulation of the European Parliament and of the Council on markets in financial instruments and amending regulation [EMIR] on OTC derivatives, central counterparties and trade repositories, COM(2011) 652 final.

2

(3)  See the proposal for a regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories, COM(2010) 484 final.

3

(4)  See paragraph 1 of the explanatory memorandum to the proposed regulation.

4

(5)  See also the ECB services response of 22 March 2011 (hereinafter ‘the ECB response’) to the Commission’s public consultation on central securities depositories and on the harmonisation of certain aspects of securities settlement in the European Union (hereinafter the ‘Commission consultation’). The ECB response is available on the ECB’s website at http://www.ecb.int

5

(6)  See Article 1(1) of the proposed regulation.

6

(7)  Directive 2004/39/EC. The Commission’s proposal to repeal Directive 2004/39/EC (see footnote 3) also incorporates the notion of emission allowances.

7

(8)  See Article 4(18) of Directive 2004/39/EC.

8

(9)  See Article 4(19) of Directive 2004/39/EC.

9

(10)  Emission allowances are defined in the proposed regulation by reference to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

10

(11)  See Article 2(1)(1) of and Section A of the Annex to the proposed regulation.

11

(12)  See CPSS-IOSCO, ‘Principles for financial market infrastructures’, April 2012, available on the BIS website at http://www.bis.org, in particular Chapter 4 (hereinafter the ‘CPSS-IOSCO principles’).

12

(13)  See ECB Opinion CON/2011/1 of 13 January 2011 on a proposal for a regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories (OJ C 57, 23.2.2011, p. 1). All ECB opinions are published on the ECB’s website at http://www.ecb.europa.eu

13

(14)  Standards for the use of EU securities settlement systems in ESCB credit operations, European Monetary Institute, January 1998.

14

(15)  See in particular Responsibility E (Cooperation with other authorities) of the CPSS-IOSCO principles.

15

(16)  Both the EU EMIR legislative framework and Directive 2006/48/EC relating to the taking up and pursuit of the business of credit institutions (OJ L 177, 30.6.2006, p. 1) and the CPSS-IOSCO principles already provide for the establishment of colleges.

16

(17)  See Financial Stability Board, ‘Reducing the moral hazard posed by systemically important financial institutions — recommendations and time lines’, October 2010, p. 8.

17

(18)  Article 37(2) of the proposed regulation.

18

(19)  See in this respect principle 9 of the CPSS-IOSCO principles, and Recommendation 10 of the ESCB-CESR ‘Recommendations for securities settlement systems and recommendations for central counterparties in the European Union’, May 2009 (hereinafter the ‘ESCB-CESR recommendations’).

19

(20)  See in this respect principle 9 of the CPSS-IOSCO principles and Recommendation 10 of the ESCB-CESR recommendations.

20

(21)  See in particular Title IV and Section C of the Annex to the proposed regulation.

21

(22)  See Directive 2006/48/EC and the amendments currently under discussion in the presidency compromise texts.

22

(23)  See in this respect paragraph 3.2 of ECB Opinion CON/2012/5 of 25 January 2012 on a proposal for a directive on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms and a proposal for a regulation on prudential requirements for credit institutions and investment firms (OJ C 105, 11.4.2012, p. 1).

23

(24)  See Section C of the Annex to the proposed regulation.

24

(25)  See Article 2(2) of the proposed regulation.

25

(26)  See Article 54 of the proposed regulation.

26

(27)  See in this respect Articles 57 and 58 of the proposed regulation.

27

(28)  See Article 52(5) of the proposed regulation.

28

(29)  See recital 25 of the proposed regulation.

29

(30)  See principle 19 of the CPSS-IOSCO principles.

30

(31)  See principle 3 of the CPSS-IOSCO principles.

31

(32)  Article 42(6) of the proposed regulation.

32

(33)  See principle 7 of the CPSS-IOSCO principles and Article 57 of the proposed regulation.

33

(34)  See Article 28 of the proposed regulation.

34

(35)  See the Commission consultation and the ECB response.

35

(36)  See Article 46(1) of the proposed regulation.

36

(37)  See Article 9 of Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45), Article 9 of Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43), and Article 24 of Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding up of credit institutions (OJ L 125, 5.5.2001, p. 15).

37

(38)  See Article 46(2) of the proposed regulation.

38

(39)  See in this respect ECB Opinion CON/2008/37 of 7 August 2008 on a proposal for a directive amending Directive 98/26/EC and Directive 2002/47/EC (OJ C 216, 23.8.2008, p. 1), paragraph 8.

39

(40)  See http://ec.europa.eu/internal_market/financial-markets/docs/certainty/2ndadvice_final_en.pdf

40

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ANNEX

Drafting proposals

| Text proposed by the Commission | Amendments proposed by the ECB (1) |
| --- | --- |
| Amendment 1 |
| Recital 6 |
| ‘6. | The Financial Stability Board (FSB) called, on 20 October 2010, for more robust core market infrastructures and asked for the revision and enhancement of the existing standards. The Committee on Payments and Settlement Systems (CPSS) of the Bank of International Settlements (BIS) and the International Organisation of Securities Commissions (IOSCO) are finalising draft global standards. These are to replace the BIS recommendations from 2001, which were adapted through non-binding guidelines at European level in 2009 by the European System of Central Banks (ESCB) and the Committee of European Securities Regulators (CESR).’ |

Text proposed by the Commission

Amendments proposed by the ECB (1)

Amendment 1

Recital 6

‘6.

The Financial Stability Board (FSB) called, on 20 October 2010, for more robust core market infrastructures and asked for the revision and enhancement of the existing standards. The Committee on Payments and Settlement Systems (CPSS) of the Bank of International Settlements (BIS) and the International Organisation of Securities Commissions (IOSCO) are finalising draft global standards. These are to replace the BIS recommendations from 2001, which were adapted through non-binding guidelines at European level in 2009 by the European System of Central Banks (ESCB) and the Committee of European Securities Regulators (CESR).’

| ‘6. | The Financial Stability Board (FSB) called, on 20 October 2010, for more robust core market infrastructures and asked for the revision and enhancement of the existing standards. In April 2012, the Committee on Payments and Settlement Systems (CPSS) of the Bank of International Settlements (BIS) and the International Organisation of Securities Commissions (IOSCO) published principles for financial market infrastructures. These principles replace theCPSS-IOSCO recommendations for securities settlement systems from November 2001, which were implemented at Union level throughthe recommendations for securities settlement systems and for central counterparties
  jointly adopted in May 2009 by the European System of Central Banks (ESCB) and the Committee of European Securities Regulators (CESR).’ |
| --- | --- |

‘6.

The Financial Stability Board (FSB) called, on 20 October 2010, for more robust core market infrastructures and asked for the revision and enhancement of the existing standards. In April 2012, the Committee on Payments and Settlement Systems (CPSS) of the Bank of International Settlements (BIS) and the International Organisation of Securities Commissions (IOSCO) published principles for financial market infrastructures. These principles replace theCPSS-IOSCO recommendations for securities settlement systems from November 2001, which were implemented at Union level throughthe recommendations for securities settlement systems and for central counterparties
  jointly adopted in May 2009 by the European System of Central Banks (ESCB) and the Committee of European Securities Regulators (CESR).’

Explanation

Explanation

The amendment takes account of the adoption of the CPSS-IOSCO principles and clarifies the reference to the ESCB-CESR.

The amendment takes account of the adoption of the CPSS-IOSCO principles and clarifies the reference to the ESCB-CESR.

Amendment 2

Amendment 2

Recital 8

| ‘8. | One of the basic tasks of the ESCB is to promote the smooth operation of payment systems. In this respect, the members of the ESCB execute oversight by ensuring efficient and sound clearing and payment systems. The members of the ESCB often act as settlement agents for the cash leg of the securities transactions. They are also important clients of CSDs, which often manage the collateralisation of monetary policy operations. The members of the ESCB should be closely involved by being consulted in the authorisation and supervision of CSDs, recognition of third country CSDs and the approval of CSD links. They should also be closely involved by being consulted in the setting of regulatory and implementing technical standards as well as of guidelines and recommendations. The provisions of this Regulation should be without prejudice to the responsibilities of the European Central Bank (ECB) and the National Central Banks (NCBs) to ensure efficient and sound clearing and payment systems within the Union and other countries.’ |
| --- | --- |

‘8.

One of the basic tasks of the ESCB is to promote the smooth operation of payment systems. In this respect, the members of the ESCB execute oversight by ensuring efficient and sound clearing and payment systems. The members of the ESCB often act as settlement agents for the cash leg of the securities transactions. They are also important clients of CSDs, which often manage the collateralisation of monetary policy operations. The members of the ESCB should be closely involved by being consulted in the authorisation and supervision of CSDs, recognition of third country CSDs and the approval of CSD links. They should also be closely involved by being consulted in the setting of regulatory and implementing technical standards as well as of guidelines and recommendations. The provisions of this Regulation should be without prejudice to the responsibilities of the European Central Bank (ECB) and the National Central Banks (NCBs) to ensure efficient and sound clearing and payment systems within the Union and other countries.’

| ‘8. | One of the basic tasks of the ESCB is to promote the smooth operation of payment systems. In this respect, the members of the ESCB execute oversight by ensuring efficient and sound clearing and payment systems. The members of the ESCB often act as settlement agents for the cash leg of the securities transactions. They are also important clients of CSDs, which often manage the collateralisation of monetary policy operations. The members of the ESCB should be closely involved and be consulted in the authorisation and supervision of CSDs, recognition of third country CSDs and the approval of CSD links. To prevent the emergence of parallel sets of rules, they should also be closely involved and be consulted in the setting of regulatory and implementing technical standards as well as of guidelines and recommendations. The provisions of this Regulation are without prejudice to the responsibilities of the European Central Bank (ECB) and the National Central Banks (NCBs) to ensure efficient and sound clearing and payment systems within the Union and other countries. Access to information by the members of the ESCB is crucial for the adequate performance of their oversight of financial market infrastructures as well as to the function of a central bank of issue.’ |
| --- | --- |

‘8.

One of the basic tasks of the ESCB is to promote the smooth operation of payment systems. In this respect, the members of the ESCB execute oversight by ensuring efficient and sound clearing and payment systems. The members of the ESCB often act as settlement agents for the cash leg of the securities transactions. They are also important clients of CSDs, which often manage the collateralisation of monetary policy operations. The members of the ESCB should be closely involved and be consulted in the authorisation and supervision of CSDs, recognition of third country CSDs and the approval of CSD links. To prevent the emergence of parallel sets of rules, they should also be closely involved and be consulted in the setting of regulatory and implementing technical standards as well as of guidelines and recommendations. The provisions of this Regulation are without prejudice to the responsibilities of the European Central Bank (ECB) and the National Central Banks (NCBs) to ensure efficient and sound clearing and payment systems within the Union and other countries. Access to information by the members of the ESCB is crucial for the adequate performance of their oversight of financial market infrastructures as well as to the function of a central bank of issue.’

Explanation

Explanation

The amendment aims to underline the importance of close and equal cooperation between ESMA and the ESCB when preparing draft technical standards. It also addresses access to information by the relevant stakeholders. It would support the proposed amendments to Article 20.

The amendment aims to underline the importance of close and equal cooperation between ESMA and the ESCB when preparing draft technical standards. It also addresses access to information by the relevant stakeholders. It would support the proposed amendments to Article 20.

Amendment 3

Amendment 3

Recital 25

| ‘25. | Considering the global nature of financial markets and the systemic importance of the CSDs, it is necessary to ensure international convergence of the prudential requirements to which they are subject. The provisions of this Regulation should follow the existing recommendations developed by CPSS-IOSCO and ESCB-CESR. ESMA should consider the existing standards and their future developments when drawing up or proposing to revise the regulatory technical and implementing standards as well as the guidelines and recommendations required in this Regulation.’ |
| --- | --- |

‘25.

Considering the global nature of financial markets and the systemic importance of the CSDs, it is necessary to ensure international convergence of the prudential requirements to which they are subject. The provisions of this Regulation should follow the existing recommendations developed by CPSS-IOSCO and ESCB-CESR. ESMA should consider the existing standards and their future developments when drawing up or proposing to revise the regulatory technical and implementing standards as well as the guidelines and recommendations required in this Regulation.’

| ‘25. | Considering the global nature of financial markets and the systemic importance of the CSDs, it is necessary to ensure international convergence of the prudential requirements to which they are subject. The provisions of this Regulation should follow the existing CPSS-IOSCO principles for financial market infrastructures and the ESCB-CESR recommendations for securities settlement systems and recommendations for central counterparties in the European Union. ESMA should consider the existing standards and their future developments when proposing the draft regulatory technical and implementing standards as well as the guidelines and recommendations referred to in this Regulation.’ |
| --- | --- |

‘25.

Considering the global nature of financial markets and the systemic importance of the CSDs, it is necessary to ensure international convergence of the prudential requirements to which they are subject. The provisions of this Regulation should follow the existing CPSS-IOSCO principles for financial market infrastructures and the ESCB-CESR recommendations for securities settlement systems and recommendations for central counterparties in the European Union. ESMA should consider the existing standards and their future developments when proposing the draft regulatory technical and implementing standards as well as the guidelines and recommendations referred to in this Regulation.’

Explanation

Explanation

The amendment aims at clarifying the text of this recital and takes into account the adoption of the CPSS-IOSCO principles.

The amendment aims at clarifying the text of this recital and takes into account the adoption of the CPSS-IOSCO principles.

Amendment 4

Amendment 4

Recital 35

| ‘35. | The safety of the link arrangements set up between CSDs should be subject to specific requirements to enable the access of their respective participants to other securities settlement systems. The requirement to provide banking type of ancillary services in separate legal entity should not prevent CSDs from receiving such services, in particular when they are participants in a securities settlement system operated by another CSD. It is particularly important that any potential risks resulting from the link arrangements such as credit, liquidity, organisational or any other relevant risks for CSDs are fully mitigated. For interoperability links, it is important that linked securities settlement systems have identical moments of entry of transfer orders into the system, irrevocability of transfer orders and finality of transfers of securities and cash. The same principles should apply to CSDs that use a common settlement information technology (IT) infrastructure.’ |
| --- | --- |

‘35.

The safety of the link arrangements set up between CSDs should be subject to specific requirements to enable the access of their respective participants to other securities settlement systems. The requirement to provide banking type of ancillary services in separate legal entity should not prevent CSDs from receiving such services, in particular when they are participants in a securities settlement system operated by another CSD. It is particularly important that any potential risks resulting from the link arrangements such as credit, liquidity, organisational or any other relevant risks for CSDs are fully mitigated. For interoperability links, it is important that linked securities settlement systems have identical moments of entry of transfer orders into the system, irrevocability of transfer orders and finality of transfers of securities and cash. The same principles should apply to CSDs that use a common settlement information technology (IT) infrastructure.’

| ‘35. | The safety of the link arrangements set up between CSDs should be subject to specific requirements to enable the access of their respective participants to other securities settlement systems. The requirement to provide banking type of ancillary services in separate legal entity should not prevent CSDs from receiving such services, in particular when they are participants in a securities settlement system operated by another CSD. It is particularly important that any potential risks resulting from the link arrangements such as credit, liquidity, organisational or any other relevant risks for CSDs are fully mitigated. For interoperability links, Directive 98/26/EC requires systems, to the extent possible, to
  ensure that their rules are coordinated concerning the moments of entry of transfer orders into the system, irrevocability of transfer orders and finality of transfers of securities and cash. The same principles should apply to CSDs that use a common settlement information technology (IT) infrastructure.’ |
| --- | --- |

‘35.

The safety of the link arrangements set up between CSDs should be subject to specific requirements to enable the access of their respective participants to other securities settlement systems. The requirement to provide banking type of ancillary services in separate legal entity should not prevent CSDs from receiving such services, in particular when they are participants in a securities settlement system operated by another CSD. It is particularly important that any potential risks resulting from the link arrangements such as credit, liquidity, organisational or any other relevant risks for CSDs are fully mitigated. For interoperability links, Directive 98/26/EC requires systems, to the extent possible, to
  ensure that their rules are coordinated concerning the moments of entry of transfer orders into the system, irrevocability of transfer orders and finality of transfers of securities and cash. The same principles should apply to CSDs that use a common settlement information technology (IT) infrastructure.’

Explanation

Explanation

The amendment introduces a reference to Directive 98/26/EC as Article 3(4) thereof requires systems to coordinate, to the extent possible, the rules of all interoperable systems concerned. See also the proposal to add a new paragraph to Article 45 of the proposed regulation.

The amendment introduces a reference to Directive 98/26/EC as Article 3(4) thereof requires systems to coordinate, to the extent possible, the rules of all interoperable systems concerned. See also the proposal to add a new paragraph to Article 45 of the proposed regulation.

Amendment 5

Amendment 5

Article 1(4) and Article 1(5) (new)

‘4.   Articles 9 to 18 and 20 as well as the provisions of Title IV do not apply to the members of the European System of Central Banks (ESCB), other Member States’ national bodies performing similar functions or Member States’ public bodies charged with or intervening in the management of the public debt.’

‘4.   This Regulation shall not apply to the members of the European System of Central Banks (ESCB) or Member States’ public bodies charged with or intervening in the management of the public debt.

5.   Notwithstanding paragraph 4, this Regulation, with the exception of Article 7(1) and Articles 9 to 18, 20, 25 and 44 as well as the provisions of Title IV, applies to the members of the ESCB when operating a securities settlement system and performing the core services listed in Section A of the Annex.’

Explanation

Explanation

The ECB supports a general exemption from financial services legislation for the members of the ESCB. At the same time, the ECB supports the application of the proposed regulation, with the exemption of the authorisation and supervision requirements provided for in Articles 9 to 18 and 20 as well as in Title IV, to members of the ESCB that operate securities settlement systems. The amendment aims at providing for this. In addition, the reference to other Member States’ national bodies performing similar functions is deleted since it is redundant given the reference to ESCB members.

The ECB supports a general exemption from financial services legislation for the members of the ESCB. At the same time, the ECB supports the application of the proposed regulation, with the exemption of the authorisation and supervision requirements provided for in Articles 9 to 18 and 20 as well as in Title IV, to members of the ESCB that operate securities settlement systems. The amendment aims at providing for this. In addition, the reference to other Member States’ national bodies performing similar functions is deleted since it is redundant given the reference to ESCB members.

Amendment 6

Amendment 6

Article 2(1)

‘ “central securities depository” (“CSD”) means a legal person that operates a securities settlement system listed in point 3 of Section A of the Annex and performs at least one other core service listed in Section A of the Annex;’

‘ “central securities depository” (“CSD”) means a legal person that performs at least one of the core services listed in Section A of the Annex;’

Explanation

Explanation

The amendment changes the definition of CSD to avoid regulatory arbitrage stemming from the creation by a CSD of two or three legal entities to perform different core activities without being subject to regulation applicable to CSDs. The ECB considers that each legal person offering any of the three core services indicated in Section A of the Annex should be subject to the Regulation.

The amendment changes the definition of CSD to avoid regulatory arbitrage stemming from the creation by a CSD of two or three legal entities to perform different core activities without being subject to regulation applicable to CSDs. The ECB considers that each legal person offering any of the three core services indicated in Section A of the Annex should be subject to the Regulation.

Amendment 7

Amendment 7

Article 3(1)

‘1.   Any company that issues transferable securities which are admitted to trading on regulated markets shall arrange for such securities to be represented in book-entry form as immobilisation through the issuance of a global note, which represents the whole issue, or subsequent to a direct issuance of the securities into a dematerialised form.’

‘1.   Any legal entity that issues transferable securities which are admitted to trading on regulated markets shall arrange for such securities to be represented in book-entry form as immobilisation through the issuance of a global note, which represents the whole issue, or subsequent to a direct issuance of the securities into a dematerialised form.’

Explanation

Explanation

Transferable securities can be issued by companies and by other legal entities, such as Member States, Member States’ regional or local authorities, or public international bodies. It is proposed to broaden the scope of Article 3(1) of the proposed regulation to include issuers other than companies, by replacing the term ‘company’ with ‘legal entity’. If this proposal is accepted, Article 4(1) of the proposed regulation should be amended accordingly.

Transferable securities can be issued by companies and by other legal entities, such as Member States, Member States’ regional or local authorities, or public international bodies. It is proposed to broaden the scope of Article 3(1) of the proposed regulation to include issuers other than companies, by replacing the term ‘company’ with ‘legal entity’. If this proposal is accepted, Article 4(1) of the proposed regulation should be amended accordingly.

Amendment 8

Amendment 8

Article 6(4)

‘4.   The European Securities and Markets Authority (ESMA) shall develop in consultation with the members of the European System of Central Banks (ESCB) draft regulatory technical standards to specify the details of the procedures enabling confirmation of relevant details of transactions and facilitating settlement referred to in paragraphs 1 and 2 and the details of the monitoring tools identifying likely settlement fails referred to in paragraph 3.

[...]’

‘4.   The European Securities and Markets Authority (ESMA), in close cooperation with the members of the European System of Central Banks (ESCB) shall develop draft regulatory technical standards to specify the details of the procedures enabling confirmation of relevant details of transactions and facilitating settlement referred to in paragraphs 1 and 2 and the details of the monitoring tools identifying likely settlement fails referred to in paragraph 3.

[...]’

Explanation

Explanation

The amendment aims at ensuring the adequate involvement of the ESCB in the development of draft regulatory standards by ESMA.

The amendment aims at ensuring the adequate involvement of the ESCB in the development of draft regulatory standards by ESMA.

Amendment 9

Amendment 9

Article 7(1)

‘1.   For each securities settlement system it operates, a CSD shall establish a system that monitors settlement fails of transactions in financial instruments referred to in Article 5(1). It shall provide regular reports to the competent authority and to any person with a legitimate interest as to the number and details of settlement fails and any other relevant information. The competent authorities shall share with ESMA any relevant information on settlement fails.’

‘1.   For each securities settlement system it operates, a CSD shall establish a system that monitors settlement fails of transactions in financial instruments referred to in Article 5(1). It shall provide regular reports to the competent authority, to the authorities referred to in Article 11 and to any person with a legitimate interest as to the number and details of settlement fails and any other relevant information. The competent authorities shall share with ESMA any relevant information on settlement fails.’

Explanation

Explanation

The proposed amendment aims at ensuring the provision of timely and adequate information to both competent authorities and the members of the ESCB.

The proposed amendment aims at ensuring the provision of timely and adequate information to both competent authorities and the members of the ESCB.

Amendment 10

Amendment 10

Article 8

‘1.   The relevant authority of the Member State whose law applies to the securities settlement system operated by a CSD shall be competent for ensuring that Articles 6 and 7 are applied and for monitoring the penalties imposed, in close cooperation with the authorities competent for the supervision of the regulated markets, MTFs, OTFs, and CCPs referred to in Article 7. In particular, the authorities shall monitor the application of penalties referred to in Article 7(2) and (4) and of the measures referred to in Article 7(6).

2.   In order to ensure consistent, efficient and effective supervisory practices within the Union in relation to Articles 6 and 7 of this Regulation, ESMA may issue guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010.’

‘1.   The authorities
  referred to in Article 10 shall be responsible for ensuring that Articles 6 and 7 are applied and for monitoring any penalties imposed, in close cooperation with the authorities competent for the supervision of the regulated markets, MTFs, OTFs, and CCPs referred to in Article 7, and the authorities referred to in Article 11(1). In particular, these authorities shall monitor the application of penalties referred to in Article 7(2) and (4) and of the measures referred to in Article 7(6).

2.   In order to ensure consistent, efficient and effective supervisory practices within the Union in relation to Articles 6 and 7 of this Regulation, ESMA may issue, in close cooperation with the members of the ESCB, guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010.’

Explanation

Explanation

The term ‘relevant authority’ is not defined in Article 1 of the proposed regulation. The amendment to paragraph 1 aims at clarifying that the authorities referred to in Article 10 and Article 11(1) should ensure compliance with Articles 6 and 7. The ECB further notes that the reference to applicable law is not aligned with the terminology used in Directive 98/26/EC
   (2). The proposed amendment to paragraph 2 aims at ensuring adequate involvement of the members of the ESCB. Articles 7(8), 15(7) to (8), 20(8) to (9), 24(8), 27(3) to (4), 30(6), 34(4), 35(6), 36(9), 42(7), 44(3), 47(6), 50(6), 51(5), 53(6), 57(5) and 58(4) should be amended accordingly.

The term ‘relevant authority’ is not defined in Article 1 of the proposed regulation. The amendment to paragraph 1 aims at clarifying that the authorities referred to in Article 10 and Article 11(1) should ensure compliance with Articles 6 and 7. The ECB further notes that the reference to applicable law is not aligned with the terminology used in Directive 98/26/EC

2

The proposed amendment to paragraph 2 aims at ensuring adequate involvement of the members of the ESCB. Articles 7(8), 15(7) to (8), 20(8) to (9), 24(8), 27(3) to (4), 30(6), 34(4), 35(6), 36(9), 42(7), 44(3), 47(6), 50(6), 51(5), 53(6), 57(5) and 58(4) should be amended accordingly.

Amendment 11

Amendment 11

Article 11(1)

‘1.   The following authorities shall be involved in the authorisation and supervision of CSDs whenever specifically referred to in this Regulation:

| (a) | the authority responsible for the oversight of the securities settlement system operated by the CSD in the Member State whose law applies to that securities settlement system; |
| --- | --- |

(a)

the authority responsible for the oversight of the securities settlement system operated by the CSD in the Member State whose law applies to that securities settlement system;

| (b) | where applicable, the central bank in the Union in whose books the cash leg of a securities settlement system operated by the CSD is settled or, in case of settlement through a credit institution in accordance with Title IV, the central bank in the Union of issue of the relevant currency.’ |
| --- | --- |

(b)

where applicable, the central bank in the Union in whose books the cash leg of a securities settlement system operated by the CSD is settled or, in case of settlement through a credit institution in accordance with Title IV, the central bank in the Union of issue of the relevant currency.’

‘1.   The following authorities shall be involved in the authorisation and supervision of CSDs whenever specifically referred to in this Regulation:

| (a) | the authority responsible for the oversight of the securities settlement system operated by the CSD in the Member State whose law applies to that securities settlement system; |
| --- | --- |

(a)

the authority responsible for the oversight of the securities settlement system operated by the CSD in the Member State whose law applies to that securities settlement system;

| (b) | the central bank in the Union issuing the currency in which settlement takes place; |
| --- | --- |

(b)

the central bank in the Union issuing the currency in which settlement takes place;

| (c) | where relevant, the member of the ESCB in whose books the cash leg of a securities settlement system operated by the CSD is settled .’ |
| --- | --- |

(c)

where relevant, the member of the ESCB in whose books the cash leg of a securities settlement system operated by the CSD is settled .’

Explanation

Explanation

The amendment aims at clarifying the role of central banks of issue, and that settlement in central bank money should be understood as settlement in the currency issued by that central bank.

The amendment aims at clarifying the role of central banks of issue, and that settlement in central bank money should be understood as settlement in the currency issued by that central bank.

Amendment 12

Amendment 12

Article 12(1), second subparagraph

‘In order to ensure consistent, efficient and effective supervisory practices within the Union, including cooperation between authorities referred to in Articles 9 and 11 in the different assessments necessary for the application of this Regulation, ESMA may issue guidelines addressed to authorities referred to in Article 9 in accordance with Article 16 of Regulation (EU) No 1095/2010.’

‘In order to ensure consistent, efficient and effective supervisory practices within the Union, including cooperation between authorities referred to in Articles 9 and 11 in the different assessments necessary for the application of this Regulation, ESMA, in close cooperation with the members of the ESCB, may issue guidelines addressed to authorities referred to in Article 9 in accordance with Article 16 of Regulation (EU) No 1095/2010.’

Explanation

Explanation

The proposed amendment aims at ensuring the adequate involvement of the members of the ESCB in the preparation of ESMA guidelines as authorities referred to in Article 11 of the proposed regulation.

The proposed amendment aims at ensuring the adequate involvement of the members of the ESCB in the preparation of ESMA guidelines as authorities referred to in Article 11 of the proposed regulation.

Amendment 13

Amendment 13

Article 13

‘The authorities referred to in Articles 9 and 11 shall immediately inform ESMA and each other of any emergency situation relating to a CSD, including of any developments in financial markets, which may have an adverse effect on market liquidity and on the stability of the financial system in any of the Member States where the CSD or one of its participants are established.’

‘Without prejudice to the notification referred to in Article 6 of Directive 98/26/EC, the authorities referred to in Articles 9 and 11 shall immediately inform ESMA, the ESRB and each other of any emergency situation relating to a CSD, including of any developments in financial markets, which may have an adverse effect on market liquidity, the stability of a currency in which settlement takes place, integrity of monetary policy and the stability of the financial system in any of the Member States where the CSD or one of its participants are established.’

Explanation

Explanation

The amendment aims at involving the ESRB in view of the nature of the emergency situation referred to, which may affect the stability of the financial system. It also aims at clarifying that the stability of relevant currencies and the integrity of monetary policy are relevant factors for the safety of CSDs. The information procedure in this Article should be without prejudice to the notification required under Article 6(3) of Directive 98/26/EC.

The amendment aims at involving the ESRB in view of the nature of the emergency situation referred to, which may affect the stability of the financial system. It also aims at clarifying that the stability of relevant currencies and the integrity of monetary policy are relevant factors for the safety of CSDs. The information procedure in this Article should be without prejudice to the notification required under Article 6(3) of Directive 98/26/EC.

Amendment 14

Amendment 14

Article 15(5)

‘5.   The competent authority shall, before granting authorisation to the applicant CSD, consult the competent authorities of the other Member State involved in the following cases:

[...]’

‘5.   The competent authority shall, before granting authorisation to the applicant CSD, consult the competent authorities and the authorities referred to in Article 11 of the other Member State involved in the following cases:

[...]’

Explanation

Explanation

The CPSS-IOSCO principles underline the importance of cooperation between central banks, supervisors and other relevant authorities. The proposed amendment aims at ensuring such cooperation with respect to the rules applicable to authorisation of CSDs. If this proposal is accepted, Article 17(2), Article 18(2), Article 22 and Article 23 of the proposed regulation should be amended accordingly.

The CPSS-IOSCO principles underline the importance of cooperation between central banks, supervisors and other relevant authorities. The proposed amendment aims at ensuring such cooperation with respect to the rules applicable to authorisation of CSDs. If this proposal is accepted, Article 17(2), Article 18(2), Article 22 and Article 23 of the proposed regulation should be amended accordingly.

Amendment 15

Amendment 15

Article 17(1)(d)

‘An authorised CSD shall submit a request for authorisation to the competent authority of the Member State where it is established whenever it wishes to outsource a core service to a third party under Article 28 or extend its activities to one or more of the following:

[...]

| (d) | setting up any CSD link.’ |
| --- | --- |

(d)

setting up any CSD link.’

‘An authorised CSD shall submit a request for authorisation to the competent authority of the Member State where it is established whenever it wishes to outsource a core service to a third party under Article 28 or extend its activities to one or more of the following:

[...];

| (d) | setting up any interoperability link.’ |
| --- | --- |

(d)

setting up any interoperability link.’

Explanation

Explanation

Considering its administrative burden, the procedure provided for in Article 17(1) should be limited to interoperable CSD links. It is also proposed to apply similar amendments to Articles 45(2) and 50(3) of the proposed regulation.

Considering its administrative burden, the procedure provided for in Article 17(1) should be limited to interoperable CSD links. It is also proposed to apply similar amendments to Articles 45(2) and 50(3) of the proposed regulation.

Amendment 16

Amendment 16

Article 19(2)

‘2.   Central banks shall immediately inform ESMA of any CSD that they operate.’

‘2.   Members of the ESCB shall inform ESMA of any securities settlement system that they operate.’

Explanation

Explanation

The amendment aims at clarifying the scope of Article 19(2). In line with recital 9 and Article 1(4) of the proposed regulation, it clarifies that members of the ESCB do not operate CSDs, but may operate a securities settlement system and perform another core service listed in Section A of the Annex.

The amendment aims at clarifying the scope of Article 19(2). In line with recital 9 and Article 1(4) of the proposed regulation, it clarifies that members of the ESCB do not operate CSDs, but may operate a securities settlement system and perform another core service listed in Section A of the Annex.

Amendment 17

Amendment 17

Article 20

‘1.   The competent authority shall, at least on an annual basis, review the arrangements, strategies, processes and mechanisms implemented by a CSD with respect to compliance with this Regulation and evaluate the risks to which the CSD is, or might be, exposed.

[...]

4.   When performing the review and evaluation referred to in paragraph 1, the competent authority shall consult at an early stage the relevant authorities referred to in Article 11 concerning the functioning of the securities settlement systems operated by the CSD.

5.   The competent authority shall regularly, and at least once a year, inform the relevant authorities referred to in Article 11 of the results, including any remedial actions or penalties, of the review and evaluation referred to in paragraph 1.

[...]’

‘1.   The competent authority shall, at least on an annual basis, review the arrangements, strategies, processes and mechanisms implemented by a CSD with respect to compliance with this Regulation and evaluate the risks to which the CSD is, or might be, exposed or associated with. The competent authority shall be entitled to collect all the relevant information necessary for its evaluation.

[...]

4.   When performing the review and evaluation referred to in paragraph 1, the competent authority shall closely cooperate with the relevant authorities referred to in Article 11 at an early stage concerning the functioning of the securities settlement systems operated by the CSD.

5.   The competent authority shall discuss regularly and in advance with the relevant authorities referred to in Article 11 the results, including any remedial actions or penalties, of the review and evaluation referred to in paragraph 1.

[...]’

Explanation

Explanation

The amendment to paragraph 1 aims at ensuring that the competent authorities collect and receive all relevant information necessary for the assessment and macro-prudential analysis of risks to which a CSD is or may be exposed, including risks associated with its systemic role.

The amendment to paragraph 1 aims at ensuring that the competent authorities collect and receive all relevant information necessary for the assessment and macro-prudential analysis of risks to which a CSD is or may be exposed, including risks associated with its systemic role.

The amendments to paragraphs 4 and 5 aim at formalising close cooperation between competent authorities, overseers and other relevant authorities.

The amendments to paragraphs 4 and 5 aim at formalising close cooperation between competent authorities, overseers and other relevant authorities.

Amendment 18

Amendment 18

Article 21(2)

‘2.   Any CSD wishing to provide its services within the territory of another Member State for the first time, or to change the range of services provided shall communicate the following information to the competent authority of the Member State where it is established:

| (a) | the Member State in which it intends to operate; |
| --- | --- |

(a)

the Member State in which it intends to operate;

| (b) | a programme of operations stating in particular the services which it intends to provide; |
| --- | --- |

(b)

a programme of operations stating in particular the services which it intends to provide;

| (c) | in case of a branch, the organisational structure of the branch and the names of those responsible for the management of the branch.’ |
| --- | --- |

(c)

in case of a branch, the organisational structure of the branch and the names of those responsible for the management of the branch.’

‘2.   Any CSD wishing to provide its services within the territory of another Member State for the first time, or to change the range of services provided shall communicate the following information to the competent authority of the Member State where it is established:

| (a) | the Member State in which it intends to operate; |
| --- | --- |

(a)

the Member State in which it intends to operate;

| (b) | a programme of operations stating in particular the services which it intends to provide, including the currency or currencies it processes; |
| --- | --- |

(b)

a programme of operations stating in particular the services which it intends to provide, including the currency or currencies it processes;

| (c) | in case of a branch, the organisational structure of the branch and the names of those responsible for the management of the branch.’ |
| --- | --- |

(c)

in case of a branch, the organisational structure of the branch and the names of those responsible for the management of the branch.’

Explanation

Explanation

The CSD should provide information on the currency or currencies in which it provides settlement. This information is necessary in order to determine the central banks of issue that should be involved in the authorisation and assessment process of that CSD.

The CSD should provide information on the currency or currencies in which it provides settlement. This information is necessary in order to determine the central banks of issue that should be involved in the authorisation and assessment process of that CSD.

Amendment 19

Amendment 19

Article 21(3)

‘3.   Within three months from the receipt of the information referred to in paragraph 2, the competent authority shall communicate that information to the competent authority of the host Member State unless, by taking into account the provision of services envisaged, it has reasons to doubt the adequacy of the administrative structure or the financial situation of the CSD wishing to provide its services in the host Member State.’

‘3.   Within three months from the receipt of the information referred to in paragraph 2, the competent authority shall communicate that information to the authorities referred to in Article 11 and the competent authority of the host Member State unless, by taking into account the provision of services envisaged, it has reasons to doubt the adequacy of the administrative structure or the financial situation of the CSD wishing to provide its services in the host Member State.’

Explanation

Explanation

The amendment aims at ensuring that the authorities referred to in Article 11 of the proposed regulation are also provided with the information referred to in Article 21(2) of the proposed regulation immediately and on an equal basis.

The amendment aims at ensuring that the authorities referred to in Article 11 of the proposed regulation are also provided with the information referred to in Article 21(2) of the proposed regulation immediately and on an equal basis.

Amendment 20

Amendment 20

Article 20a — Professional secrecy (new)

[No text]

‘1.   The obligation of professional secrecy shall apply to all persons who work or who have worked for the authorities referred to in Articles 10 and 11 and ESMA, or auditors and experts instructed by the competent authorities, ESMA or the ESRB.

Confidential information they may receive in the course of their duties shall not be divulged to any other person or authority whatsoever, except in summary or aggregate form such that an individual CSD or any other person cannot be identified, without prejudice to cases covered by criminal law or taxation or the other provisions of this Regulation.

2.   Where a CSD has been declared bankrupt or is being compulsorily wound up, confidential information which does not concern third parties may be divulged in civil or commercial proceedings where necessary for carrying out the proceeding.

3.   Without prejudice to cases covered by criminal and tax law, the authorities referred to in Articles 10 and 11, ESMA, bodies or natural or legal persons other than competent authorities which receive confidential information pursuant to this Regulation may use it only in the performance of their duties and for the exercise of their functions including the disclosure of information to a superior body, in the case of the competent authorities, within the scope of this Regulation or, in the case of other authorities, bodies or natural or legal persons, for the purpose for which such information was provided to them or in the context of administrative or judicial proceedings specifically related to the exercise of those functions, or both. Where ESMA, the competent authority or another authority, body or person communicating information consents thereto, the authority receiving the information may use it for other non-commercial purposes.

4.   Any confidential information received, exchanged or transmitted pursuant to this Regulation shall be subject to the conditions of professional secrecy laid down in paragraphs 1, 2 and 3.

However, those conditions shall not prevent ESMA, or the authorities referred to in Articles 10 and 11, from exchanging or transmitting confidential information in accordance with their statutory tasks and with other legislation applicable to investment firms, credit institutions, pension funds, undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (AIFMs), insurance and reinsurance intermediaries, insurance undertakings, regulated markets or market operators or otherwise with the consent of the competent authority or other authority or body or natural or legal person that communicated the information.

5.   Paragraphs 1, 2 and 3 shall not prevent the authorities referred to in Articles 10 and 11 from exchanging or transmitting confidential information, in accordance with national law, that has not been received from a competent authority of another Member State.’

Explanation

Explanation

With this amendment, the ECB proposes introducing a professional secrecy regime similar to the corresponding provisions in other European financial services legislation, such as EMIR. To this end, it is proposed to insert a new Article 20a.

With this amendment, the ECB proposes introducing a professional secrecy regime similar to the corresponding provisions in other European financial services legislation, such as EMIR. To this end, it is proposed to insert a new Article 20a.

Amendment 21

Amendment 21

Article 20b — Exchange of information (new)

[No text]

‘1.   ESMA, the authorities referred to in Articles 10 and 11 and other relevant authorities shall without undue delay provide one another with the information required for the purposes of carrying out their duties.

2.   The authorities referred to in Articles 10 and 11, other relevant authorities, ESMA and other bodies or natural and legal persons receiving confidential information in the exercise of their duties under this Regulation shall only use it in the course of their duties.

3.   Competent authorities shall communicate information to the ESRB and to the relevant members of the ESCB where such information is relevant for the exercise of their duties.’

Explanation

Explanation

With this amendment, the ECB proposes introducing a regime on the exchange of information similar to the corresponding provisions in other European financial services legislation, such as EMIR. To this end, it is proposed to insert a new Article 20b.

With this amendment, the ECB proposes introducing a regime on the exchange of information similar to the corresponding provisions in other European financial services legislation, such as EMIR. To this end, it is proposed to insert a new Article 20b.

Amendment 22

Amendment 22

Article 22(7)

‘7.   ESMA shall develop draft implementing technical standards to establish standard forms, templates and procedures for the cooperation arrangements referred to in paragraphs 1, 3 and 5.

ESMA shall submit those draft implementing technical standards to the Commission by six months from the date of entry into force of this Regulation.

Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 15 of Regulation (EU) No 1095/2010.’

‘7.   ESMA, in close cooperation with the members of the ESCB, shall develop draft implementing technical standards to establish standard forms, templates and procedures for the cooperation arrangements referred to in paragraphs 1, 3 and 5.

ESMA shall submit those draft implementing technical standards to the Commission by six months from the date of entry into force of this Regulation.

Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 15 of Regulation (EU) No 1095/2010.’

Explanation

Explanation

The amendment aims at ensuring that the members of the ESCB are adequately involved in the preparation of draft implementing technical standards.

The amendment aims at ensuring that the members of the ESCB are adequately involved in the preparation of draft implementing technical standards.

Amendment 23

Amendment 23

Article 23(2)

‘2.   After consultation with the authorities referred to in paragraph 3, ESMA shall recognise a CSD established in a third country that has applied for recognition to provide the services referred to in paragraph 1, where the following conditions are met:

| (a) | the Commission has adopted a decision in accordance with paragraph 6; |
| --- | --- |

(a)

the Commission has adopted a decision in accordance with paragraph 6;

| (b) | the CSD is subject to effective authorisation and supervision ensuring a full compliance with the prudential requirements applicable in that third country; |
| --- | --- |

(b)

the CSD is subject to effective authorisation and supervision ensuring a full compliance with the prudential requirements applicable in that third country;

| (c) | cooperation arrangements between ESMA and the competent authorities in that third country have been established pursuant to paragraph 7.’ |
| --- | --- |

(c)

cooperation arrangements between ESMA and the competent authorities in that third country have been established pursuant to paragraph 7.’

‘2.   After consultation with the authorities referred to in paragraph 3, ESMA shall recognise a CSD established in a third country that has applied for recognition to provide the services referred to in paragraph 1, where the following conditions are met:

| (a) | the Commission has adopted a decision in accordance with paragraph 6; |
| --- | --- |

(a)

the Commission has adopted a decision in accordance with paragraph 6;

| (b) | the CSD is subject to effective authorisation, supervision and oversight or, if the securities settlement system is operated by a central bank, oversight, ensuring full compliance with the prudential requirements applicable in that third country; |
| --- | --- |

(b)

the CSD is subject to effective authorisation, supervision and oversight or, if the securities settlement system is operated by a central bank, oversight, ensuring full compliance with the prudential requirements applicable in that third country;

| (c) | cooperation arrangements between ESMA and the relevant authorities in that third country have been established pursuant to paragraph 7.’ |
| --- | --- |

(c)

cooperation arrangements between ESMA and the relevant authorities in that third country have been established pursuant to paragraph 7.’

Explanation

Explanation

The amendment aims at ensuring that the condition under point (b) applies to third country CSDs operated by central banks that are subject to oversight only, as is the case currently with some CSDs operated by NCBs in the Union. Paragraph 2(c) should include central banks both in their capacity as overseers and as central banks of issue.

The amendment aims at ensuring that the condition under point (b) applies to third country CSDs operated by central banks that are subject to oversight only, as is the case currently with some CSDs operated by NCBs in the Union. Paragraph 2(c) should include central banks both in their capacity as overseers and as central banks of issue.

Amendment 24

Amendment 24

Article 23(3)

‘3.   When assessing whether the conditions referred to in paragraph 2 are met, ESMA shall consult with:

| (a) | the competent authorities of the Member States in which the third country CSD intends to provide CSD services; |
| --- | --- |

(a)

the competent authorities of the Member States in which the third country CSD intends to provide CSD services;

| (b) | the competent authorities supervising CSDs established in the Union with whom a third country CSD has established links; |
| --- | --- |

(b)

the competent authorities supervising CSDs established in the Union with whom a third country CSD has established links;

| (c) | the authorities referred to in point (a) of Article 11(1); |
| --- | --- |

(c)

the authorities referred to in point (a) of Article 11(1);

| (d) | the authority in the third country competent for authorising and supervising CSDs.’ |
| --- | --- |

(d)

the authority in the third country competent for authorising and supervising CSDs.’

‘3.   When assessing whether the conditions referred to in paragraph 2 are met, ESMA shall consult with:

| (a) | the competent authorities of the Member States in which the third country CSD intends to provide CSD services; |
| --- | --- |

(a)

the competent authorities of the Member States in which the third country CSD intends to provide CSD services;

| (b) | the competent authorities supervising CSDs established in the Union with whom a third country CSD has established links; |
| --- | --- |

(b)

the competent authorities supervising CSDs established in the Union with whom a third country CSD has established links;

| (c) | the authorities referred to in Article 11(1); |
| --- | --- |

(c)

the authorities referred to in Article 11(1);

| (d) | the authority in the third country competent for authorising and supervising CSDs.’ |
| --- | --- |

(d)

the authority in the third country competent for authorising and supervising CSDs.’

Explanation

Explanation

The amendment aims at ensuring that the relevant central bank of issue is involved in the assessment by ESMA in line with the CPSS-IOSCO principles.

The amendment aims at ensuring that the relevant central bank of issue is involved in the assessment by ESMA in line with the CPSS-IOSCO principles.

Amendment 25

Amendment 25

Article 25(5)

‘5.   A CSD shall clearly determine the roles and responsibilities of the board and shall make the minutes of the board meetings available to the competent authority.’

‘5.   A CSD shall clearly determine the roles and responsibilities of the board and shall make the minutes of the board meetings available to the competent authority and the auditor.’

Explanation

Explanation

The amendment makes this provision consistent with Article 25(3) of EMIR.

The amendment makes this provision consistent with Article 25(3) of EMIR.

Amendment 26

Amendment 26

Article 28(5)

‘5.   Paragraphs 1 to 4 shall not apply where a CSD outsources some of its services or activities to a public entity and where that outsourcing is governed by a dedicated legal, regulatory and operational framework which has been jointly agreed and formalised by the public entity and the relevant CSD and agreed by the competent authorities on the basis of the requirements established in this Regulation.’

‘5.   Paragraphs 1 to 4 shall not apply where a CSD outsources some of its services or activities to a public entity and where that outsourcing is governed by a dedicated legal, regulatory and operational framework which has been jointly agreed and formalised by the public entity and the relevant CSD and endorsed by the competent authorities of the relevant CSD.’

Explanation

Explanation

The amendment introduces editorial suggestions. In addition, it is proposed to delete the last part of the sentence, since no specific requirements are provided for in the proposed regulation for the development of this operational framework.

The amendment introduces editorial suggestions. In addition, it is proposed to delete the last part of the sentence, since no specific requirements are provided for in the proposed regulation for the development of this operational framework.

Amendment 27

Amendment 27

Article 35

‘1.   For each securities settlement system it operates a CSD shall keep records and accounts that shall enable it, at any time and without delay, to distinguish in the accounts with the CSD the securities of a participant from the securities of any other participant and, if applicable, from the CSD's own assets.

2.   A CSD shall keep records and accounts that enable a participant to distinguish the securities of that participant from those of that participant's clients.

3.   A CSD shall offer to keep records and accounts enabling a participant to distinguish the securities of each of that participant's clients, if and as required by that participant (“individual client segregation”).

[...]’

‘1.   For each securities settlement system it operates a CSD shall keep records and accounts that shall enable it, at any time and without delay, to segregate in the accounts with the CSD the securities of a participant from the securities of any other participant and, if applicable, from the CSD’s own assets.

2.   A CSD shall keep records and accounts that enable a participant to segregate the securities of that participant from those of that participant's clients.

3.   A CSD shall offer to keep records and accounts enabling a participant to segregate the securities of each of that participant's clients, if and as required by that participant (“individual client segregation”).

[...]’

Explanation

Explanation

The amendment aims at clarifying that securities held by clients should be segregated from the securities of the CSD and of other clients. This is consistent with principle 11 of the CPSS-IOSCO principles.

The amendment aims at clarifying that securities held by clients should be segregated from the securities of the CSD and of other clients. This is consistent with principle 11 of the CPSS-IOSCO principles.

Amendment 28

Amendment 28

Article 36(6)

‘6.   A CSD shall achieve settlement finality no later than by the end of the business day of the intended settlement date. Upon demand by its user committee, it shall install systems that allow for intraday or real-time settlement.’

‘6.   A CSD shall achieve settlement finality no later than by the end of the business day of the intended settlement date. Upon demand by its user committee, it shall install operational procedures that allow for intraday or real-time settlement.’

Explanation

Explanation

In the context of the proposed regulation, the term ‘system’ has a specific meaning, as defined in Article 2 of Directive 98/26/EC. The amendment aims at avoiding any unintended interpretations of the term ‘system’.

In the context of the proposed regulation, the term ‘system’ has a specific meaning, as defined in Article 2 of Directive 98/26/EC. The amendment aims at avoiding any unintended interpretations of the term ‘system’.

Amendment 29

Amendment 29

Article 37(1)

‘1.   For transactions denominated in the currency of the country where the settlement takes place, a CSD shall settle the cash payments of its respective securities settlement system through accounts opened with a central bank operating in such currency whenever practical and available.’

‘1.   For transactions denominated in the currency of the country where the settlement takes place, a CSD shall settle the cash payments of its respective securities settlement system through accounts opened with the central bank of issue of that currency whenever practical and available.’

Explanation

Explanation

On the basis of safeguarding the safety and efficiency of settlement and in line with CPSS-IOSCO principles, this provision needs to be completed by providing that for transactions denominated in the currency of the country of the settlement, CSDs should settle in central bank money, whenever practical and feasible. The amendment aims at specifying that the cash settlement accounts should be opened with the central bank of issue of the currency, rather than any central bank operating in such currency.

On the basis of safeguarding the safety and efficiency of settlement and in line with CPSS-IOSCO principles, this provision needs to be completed by providing that for transactions denominated in the currency of the country of the settlement, CSDs should settle in central bank money, whenever practical and feasible. The amendment aims at specifying that the cash settlement accounts should be opened with the central bank of issue of the currency, rather than any central bank operating in such currency.

Amendment 30

Amendment 30

Article 39 of the proposed regulation

‘A CSD shall adopt a sound risk-management framework for comprehensively managing legal, business, operational and other risks.’

‘A CSD shall adopt a sound risk-management framework for comprehensively managing legal, business, operational, systemic and other risks.’

Explanation

Explanation

CSDs are deemed to be systemically important market infrastructures. For this reason, the prudential requirements applicable to them should aim to address systemic risk.

CSDs are deemed to be systemically important market infrastructures. For this reason, the prudential requirements applicable to them should aim to address systemic risk.

Amendment 31

Amendment 31

Article 40(2)

‘2.   A CSD shall design its rules, procedures and contracts so as they can be enforced in all relevant jurisdictions, including in the case of the default of the participant.’

‘2.   A CSD shall design its rules, procedures and contracts so as they can be enforced in the case of the default of the participant.’

Explanation

Explanation

The amendment is editorial. Enforceability of rules, procedures and contracts already implies their enforceability in all relevant jurisdictions.

The amendment is editorial. Enforceability of rules, procedures and contracts already implies their enforceability in all relevant jurisdictions.

Amendment 32

Amendment 32

Article 45(4)

‘4.   In case of a provisional transfer of securities between linked CSDs, retransfer of securities prior to the first transfer becoming final shall be prohibited.’

‘4.   In case of a provisional transfer of securities between linked CSDs, retransfer or onward transfer to a third CSD of securities prior to the first transfer becoming final shall be prohibited.’

Explanation

Explanation

This amendment addresses problems relating to the possible creation of securities where a provisional transfer is cancelled and the provisionally transferred securities are transferred into another CSD. These risks relate to the integrity of the issue.

This amendment addresses problems relating to the possible creation of securities where a provisional transfer is cancelled and the provisionally transferred securities are transferred into another CSD. These risks relate to the integrity of the issue.

Amendment 33

Amendment 33

Article 45(8a) (new)

[No text]

‘A CSD shall provide appropriate account structures to enable participants, including other CSDs, to connect to its systems. The account structure shall be supported by the appropriate settlement, custody and fiscal arrangements.’

Explanation

Explanation

Unless appropriate accounts structures are offered by a CSD to which another CSD is linked, in the form of omnibus accounts structures, for example, the proper functioning of the link between these CSDs is not possible.

Unless appropriate accounts structures are offered by a CSD to which another CSD is linked, in the form of omnibus accounts structures, for example, the proper functioning of the link between these CSDs is not possible.

Amendment 34

Amendment 34

Article 45(9)

‘9.   ESMA shall develop in consultation with the members of the ESCB draft regulatory technical standards to specify the conditions as provided in paragraph 3 under which each type of link arrangement provides for adequate protection of the linked CSDs and of their participants, in particular when a CSD intends to participate in the securities settlement system operated by another CSD, the monitoring and managing of additional risks referred to in paragraph 5 arising from the use of intermediaries, thereconciliation methods referred to in paragraph 6, the cases where DVP settlement through links is practical and feasible as provided in paragraph 7 and the methods of assessment thereof.’

‘9.   ESMA shall develop in close cooperation with the members of the ESCB draft regulatory technical standards to specify the conditions as provided in paragraph 3 under which each type of link arrangement provides for adequate protection of the linked CSDs and of their participants, in particular when a CSD intends to participate in the securities settlement system operated by another CSD, the monitoring and managing of additional risks referred to in paragraph 5arising from the use of intermediaries, the reconciliation methods referred to in paragraph 6, the cases where DVP settlement through links is practical and feasible as provided in paragraph 7, the provisions of paragraph [8a] on the appropriate account structures including the relevant arrangements and the methods of assessment thereof.’

Explanation

Explanation

The purpose of the amendment is to provide for the adoption of technical standards by ESMA with respect to account structures for CSD links.

The purpose of the amendment is to provide for the adoption of technical standards by ESMA with respect to account structures for CSD links.

Amendment 35

Amendment 35

Article 46

‘1.   Any question with respect to proprietary aspects in relation to financial instruments held by a CSD shall be governed by the law of the country where the account is maintained.

2.   Where the account is used for settlement in a securities settlement system, the applicable law shall be the one governing that securities settlement system.

3.   Where the account is not used for settlement in a securities settlement system, that account shall be presumed to be maintained at the place where the CSD has its habitual residence as determined by Article 19 of Regulation (EC) No 593/2008 of the European Parliament and the Council.

4.   The application of the law of any country specified in this Article shall comprise the application of the rules of law in force in that country other than its rules of private international law.’

‘1.   Without prejudice to Article 2(a), Article 9 and Article 10 of Directive 98/26/EC, any question with respect to proprietary aspects in relation to financial instruments held by a CSD shall be governed by the law of the country where the account is maintained. The account shall be presumed to be maintained at the place where the CSD has its habitual residence as determined by Article 19 of Regulation (EC) No 593/2008 of the European Parliament and the Council.

2.   Where the law of the Member State where the account is maintained differs from the law governing the securities settlement system, and the securities settlement system has been designated in accordance with Article 2 of Directive 98/26/EC, the applicable law shall be the one governing that securities settlement system.

3.   The application of the law of any country specified in this Article shall comprise the application of the rules of law in force in that country other than its rules of private international law.’

Explanation

Explanation

The proposed regulation provides for an exception to the principal rule set out in Article 46(1) and allows for a choice of law in relation to any account used for settlement in a securities settlement system. The notion of securities settlement system is defined as a formal arrangement governed by the law of a Member State chosen by the participants
   (3). Consequently, since participants are able to choose the law applicable to a securities settlement system, the law governing a securities settlement system, as referred to in Article 46(2) of the proposed regulation, is subject to a choice of law and may differ from the law of the place of establishment of the CSD. This creates legal uncertainty as to the applicable law with respect to securities settled on the accounts of a CSD. The amendment aims at limiting the scope of choice of law while catering for certain specific cases where the law of the Member State where the accounts are maintained differs from the law governing the rules of the securities settlement system.

The proposed regulation provides for an exception to the principal rule set out in Article 46(1) and allows for a choice of law in relation to any account used for settlement in a securities settlement system. The notion of securities settlement system is defined as a formal arrangement governed by the law of a Member State chosen by the participants

3

Consequently, since participants are able to choose the law applicable to a securities settlement system, the law governing a securities settlement system, as referred to in Article 46(2) of the proposed regulation, is subject to a choice of law and may differ from the law of the place of establishment of the CSD. This creates legal uncertainty as to the applicable law with respect to securities settled on the accounts of a CSD. The amendment aims at limiting the scope of choice of law while catering for certain specific cases where the law of the Member State where the accounts are maintained differs from the law governing the rules of the securities settlement system.

Amendment 36

Amendment 36

Article 52(2)

‘2.   [...]

Following a detailed impact assessment, a consultation of the undertakings concerned and after taking into accountthe opinions of the EBA, the ESMA and the ECB, the Commission shall adopt an implementing decision in accordance with the procedure referred to in Article 66. The Commission shall give reasons for its implementing decision.

[...]’

‘2.   [...]

Following a detailed impact assessment, a consultation of the CSD concerned and after taking intoaccount the opinions of the EBA, the ESMA, the ECB, and the supervisory authorities and the assessment of the ESRB, the Commission shall adopt an implementing decision in accordance with the procedure referred to in Article 66. The Commission shall give reasons for its implementing decision.

[...]’

Explanation

Explanation

The amendment clarifies that the undertakings concerned are CSDs, and that the ESRB would also provide the Commission with its assessment.

The amendment clarifies that the undertakings concerned are CSDs, and that the ESRB would also provide the Commission with its assessment.

Amendment 37

Amendment 37

Article 52(3)

‘3.   A CSD that intends to settle the cash leg of all or part of its securities settlement system in accordance with Article 37(2) of this Regulation shall obtain authorisation to designate for this purpose an authorised credit institution as provided in Title II of Directive 2006/48/EC, unless the competent authority referred to in Article 53(1) of this Regulation demonstrates, based on the available evidence, that the exposure of one credit institution to the concentration of risks under Article 57(3) and (4) of this Regulation is not sufficiently mitigated. In the latter case, the competent authority referred to in Article 53(1) may require the CSD to designate more than one credit institution. The designated credit institutions shall be considered as settlement agents.’

‘3.   A CSD that intends to settle the cash leg of all or part of its securities settlement system in accordance with Article 37(2) of this Regulation shall obtain authorisation to designate for this purpose an authorised credit institution as provided in Title II of Directive 2006/48/EC, unless the competent authority referred to in Article 53(1) of this Regulation demonstrates, based on the available evidence, that the exposure of one credit institution to the concentration of risks under Article 57(3) and (4) of this Regulation is not sufficiently mitigated. In the latter case, the competent authority referred to in Article 53(1) may require the CSD to designate more than one credit institution. The designated credit institutions shall be considered as settlement agents as defined in Article 2(d) of Directive 98/26/EC.’

Explanation

Explanation

The amendment aims at clarifying that a designated credit institution is to be considered a settlement agent within the meaning of Directive 98/26/EC for the cash leg of securities transactions, thereby providing finality to transfer orders relating to that cash leg.

The amendment aims at clarifying that a designated credit institution is to be considered a settlement agent within the meaning of Directive 98/26/EC for the cash leg of securities transactions, thereby providing finality to transfer orders relating to that cash leg.

Amendment 38

Amendment 38

Article 53(5)

‘5.   ESMA shall develop in consultation with the members of the ESCB draft regulatory technical standards to specify the information that the applicant CSD shall provide to the competent authority.

[...]’

‘5.   ESMA shall develop in close cooperation with the members of the ESCB and EBA draft regulatory technical standards to specify the information that the applicant CSD shall provide to the competent authority.

[...]’

Explanation

Explanation

The amendment aims at involving EBA in the development of the draft regulatory standards referred to in Article 53(5), as the subject matter of these standards relates to information concerning credit institutions.

The amendment aims at involving EBA in the development of the draft regulatory standards referred to in Article 53(5), as the subject matter of these standards relates to information concerning credit institutions.

---

(1)  Bold in the body of the text indicates where the ECB proposes inserting new text. Strikethrough in the body of the text indicates where the ECB proposes deleting text.

1

(2)  See in particular Directive 98/26/EC, which refers to governing law rather than applicable law.

2

(3)  See in this respect Article 2 of Directive 98/26/EC, which refers to governing law rather than applicable law.

3

---

IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

Council

| 13.10.2012 | EN | Official Journal of the European Union | C 310/32 |
| --- | --- | --- | --- |

13.10.2012

EN

Official Journal of the European Union

C 310/32

---

List of national football information points (NFIPs)

2012/C 310/03

Updates should be sent to: lewp@consilium.europa.eu

| MS | Service | Address | Telephone/Fax | E-mail |
| --- | --- | --- | --- | --- |
| BE | Police fédérale
  Direction générale de la police administrative
  Direction des opérations et informations
  Sécurité intégrale football (SIF) | Rue Fritz Toussaintstraat 8 |
| 1050 Bruxelles |

MS

Service

Address

Telephone/Fax

E-mail

BE

Police fédérale

Direction générale de la police administrative

Direction des opérations et informations

Sécurité intégrale football (SIF)

Rue Fritz Toussaintstraat 8

1050 Bruxelles

+32 26426019

+32 26426070

+32 26464940 (Fax)

ivv-sif@skynet.be

BG

National Information Centre

| — | Sport Events Security Unit |
| --- | --- |

—

Sport Events Security Unit

Criminal Police Department

National Police Chief Directorate

Ministry of Interior

| Alexander Malinov blvd. 1 |
| --- |
| 1715 Sofia |

Alexander Malinov blvd. 1

1715 Sofia

+359 29828610

+359 29316080 (Fax)

nfip@mvr.bg

CZ

Policejní prezidium České republiky

Úřad služby kriminální policie a vyšetřování

(Police Presidium of the Czech Republic

Bureau of Criminal Police and Investigation Service)

| Strojnická 27 |
| --- |
| PO Box 62/KPV |
| 170 89 Praha 7 |

Strojnická 27

PO Box 62/KPV

170 89 Praha 7

+420 974824105

+420 974824150

+420 603190315

+420 603190084

+420 974824289 (Fax)

uskpv.podatelna@mvcr.cz

cz.sis@mvcr.cz

DK

Danish National Police

Communication Centre

| Ejby Industrivej 125-135 |
| --- |
| 2620 Glostrup |

Ejby Industrivej 125-135

2620 Glostrup

+45 33430601

+45 33322771 (Fax)

NEC@politi.dk

DE

Landesamt für Zentrale Polizeiliche Dienste Nordrhein-Westfalen (LZPD NRW)

Zentrale Informationsstelle Sporteinsätze (ZIS)

Central Sports Intelligence Unit Germany

| Hammfelddamm 4a |
| --- |
| 41460 Neuss |

Hammfelddamm 4a

41460 Neuss

+49 2034175-4130

+49 2034175-4131

+49 2034175-4257

+49 2034175-4258

+49 2034175-4904 (Fax)

zis@polizei.nrw.de

EE

Coordination Division

Development Bureau

Public Order Police Department

Police and Border Guard Board

| Ädala 4e |
| --- |
| 10614 Tallinn |

Ädala 4e

10614 Tallinn

+372 6123229

+372 6123910 (24 h)

+372 6123209 (Fax)

nfip.estonia@list.pol.ee

EL

Ministry of Public Order and Citizen Protection/Hellenic Police Headquarters/General Policing Division

| P. Kanellopoulou Ave. 4 |
| --- |
| 101 77 Athens |

P. Kanellopoulou Ave. 4

101 77 Athens

+30 2106924929

+30 6977788519

+30 2106998150 (Fax)

nfipgreece@astynomia.gr

ES

National Sport Office -Oficina Nacional de Deportes-

Secretaría General de la Comisaría General de Seguridad Ciudadana

| Calle Julián González Segador, s/n |
| --- |
| 28043 Madrid |

Calle Julián González Segador, s/n

28043 Madrid

+34 915822710

+34 915822711

+34 915822712 (Fax)

ond@policia.es

FR

Direction centrale de la sécurité publique

Division nationale de lutte contre le hooliganisme

| 11 rue Cambacérès |
| --- |
| 75011 Paris |

11 rue Cambacérès

75011 Paris

+33 149274845

+33 140072279 (Fax)

dcsp.pnif@interieur.gouv.fr

IE

National Football Information Points, National Criminal Intelligence

Security and Intelligence

| Garda Headquarters |
| --- |
| Phoenix Park |
| Dublin 8 |

Garda Headquarters

Phoenix Park

Dublin 8

+353 16661815

SI_NCIU@garda.ie

IT

Ministero dell'Interno

Dipartimento della Pubblica Sicurezza

Ufficio Ordine Pubblico

| Piazza del Viminale 1 |
| --- |
| 00184 Roma RM |

Piazza del Viminale 1

00184 Roma RM

+39 0646527993

+39 0646547798 (Fax)

cnims@interno.it

CY

Ministry of Justice and Public Order

Cyprus Police Headquarters, Operations Branch

National Football Information Point

| Antistratigou Evangelou |
| --- |
| Floraki str. |
| 1478 Nicosia |

Antistratigou Evangelou

Floraki str.

1478 Nicosia

+357 22808559

+357 22808341 (Fax)

nfiphq@police.gov.cy

LV

Central Public Order Police Department of State Police

| Čiekurkalna 1. līnija K-4 |
| --- |
| Rīga, LV-1026 |

Čiekurkalna 1. līnija K-4

Rīga, LV-1026

+371 67829335

+371 67829449 (Fax)

pasakumi@vp.gov.lv

LT

Police Department under the MoI Public Police Board

| Saltoniskiu g. 19 |
| --- |
| LT-08105 Vilnius |

Saltoniskiu g. 19

LT-08105 Vilnius

+370 52719867

+370 52717951 (Fax)

nfip-lithuania@policija.lt

For urgent cases (24/7 service)

Lithuanian Criminal Police Bureau

International Liaison Office

| Liepyno g. 7 |
| --- |
| LT-08105 Vilnius |

Liepyno g. 7

LT-08105 Vilnius

+370 52719900

+370 52719924 (Fax)

office@ilnb.lt

LU

Direction générale de la police Grand-Ducale

Direction des opérations et de la prévention

2957 Luxembourg

+352 49972360

+352 49972399 (Fax)

dop@police.etat.lu

HU

Hungarian National Police

Law Enforcement Directorate

Public Order Department

| Budapest |
| --- |
| Teve u. 4–6. |
| 1139 |

Budapest

Teve u. 4–6.

1139

+36 14435507

+36 14435543 (Fax)

nfiphungary@orfk.police.hu

MT

Police General Headquarters

Protective Services

Malta Police Force

| Police General Headquarters |
| --- |
| St. Calcidonio Square |
| Floriana |
| FRN 1530 |

Police General Headquarters

St. Calcidonio Square

Floriana

FRN 1530

+356 21224001

+356 21226183 (Fax)

carmelo.magri@gov.mt

NL

National Football Information Point, CIV

| PO Box 8300 |
| --- |
| 3503 RH Utrecht |

PO Box 8300

3503 RH Utrecht

+31 306577222

+31 306577239 (Fax)

civ@wxs.nl

civ@utrecht.politie.nl

http://www.civ-voetbal.com

AT

Bundesministerium für Inneres (Ministry of Interior)

Generaldirektion für die öffentliche Sicherheit

Abteilung II/11 — Sportangelegenheiten

| Türkenstraße 22 |
| --- |
| 1090 Wien |

Türkenstraße 22

1090 Wien

+43 13131085501

+43 13131085590 (Fax)

BMI-II-11@bmi.gv.at

PL

General Headquarters of Police

General Police Staff

National Football Information Point

| ul. Puławska 148/150 |
| --- |
| 02-624 Warszawa |

ul. Puławska 148/150

02-624 Warszawa

+48 226015034

+48 226013537

+48 226012823

+48 226015001 (Fax)

kpk@policja.gov.pl

PT

Polícia de Segurança Pública

Direcção Nacional

Departamento de Informações Policiais

| Largo da Penha de França 1.o |
| --- |
| 1199-010 Lisboa |

Largo da Penha de França 1.o

1199-010 Lisboa

+351 218111000

+351 218147705 (Fax)

pnif@psp.pt

RO

Ministry of Administration and Interior/General Inspectorate of Romanian Gendarmerie — National Football Information Point

| Str. Jandarmeriei nr. 9-11, sector 1 |
| --- |
| 013894 București |

Str. Jandarmeriei nr. 9-11, sector 1

013894 București

+40 213198065

+40 214096557

+40 213198065 (Fax)

nfip@mai.gov.ro

SI

Ministry of the Interior

Uniformed Police Directorate

General Police Division

| Štefanova ulica 2 |
| --- |
| SI-1501 Ljubljana |

Štefanova ulica 2

SI-1501 Ljubljana

+386 14284989

+386 14284751

+386 14284791 (Fax)

ssp.uup@policija.si

SK

Národné informačné centrum NUI Bratislava

(NFIP Bratislava)

| Vajnorská 25 |
| --- |
| Bratislava |

Vajnorská 25

Bratislava

+421 0961050318

+421 0961059002 (Fax)

divackenasilie@minv.sk

nic@nui.minv.sk (non EU countries only)

FI

Helsinki Police, Operational Policing Department

| Pasilanraitio 11 |
| --- |
| FI-00240 Helsinki |

Pasilanraitio 11

FI-00240 Helsinki

+358 718776111

+358 718772812 (Fax)

nfip-fin@poliisi.fi

SE

National Bureau of Investigation, International Police Cooperation Division (IPO)

| Box 12256 |
| --- |
| SE-102 26 Stockholm |

Box 12256

SE-102 26 Stockholm

+46 105637000

+46 86514203 (Fax)

ipo@rkp.police.se

UK

UKFPU (United Kingdom Football Policing Unit)

| PO Box 51997 |
| --- |
| London |
| SW9 6TN |

PO Box 51997

London

SW9 6TN

+44 2077857161-82

+44 2077857184 (Fax)

footballdesk@fpu.pnn.police.uk

Europol

| | Visitors address:





  Eisenhowerlaan 73 |
| --- | --- |
| 2517 KK Den Haag |
| NEDERLAND |

Visitors address:

Eisenhowerlaan 73

2517 KK Den Haag

NEDERLAND

| | Postal address:





  Europol |
| --- | --- |
| PO Box 908 50 |
| 2509 LW Den Haag |
| NEDERLAND |

Postal address:

Europol

PO Box 908 50

2509 LW Den Haag

NEDERLAND

+31 703531022

O1@europol.europa.eu

navarroj@europol.europa.eu

---

European Commission

| 13.10.2012 | EN | Official Journal of the European Union | C 310/36 |
| --- | --- | --- | --- |

13.10.2012

EN

Official Journal of the European Union

C 310/36

---

Euro exchange rates (1)

12 October 2012

2012/C 310/04

1 euro =

| | Currency | Exchange rate |
| --- | --- | --- |
| USD | US dollar | 1,2970 |
| JPY | Japanese yen | 101,70 |
| DKK | Danish krone | 7,4589 |
| GBP | Pound sterling | 0,80650 |
| SEK | Swedish krona | 8,6830 |
| CHF | Swiss franc | 1,2093 |
| ISK | Iceland króna | |
| NOK | Norwegian krone | 7,4005 |
| BGN | Bulgarian lev | 1,9558 |
| CZK | Czech koruna | 24,950 |
| HUF | Hungarian forint | 281,40 |
| LTL | Lithuanian litas | 3,4528 |
| LVL | Latvian lats | 0,6961 |
| PLN | Polish zloty | 4,0978 |
| RON | Romanian leu | 4,5648 |
| TRY | Turkish lira | 2,3437 |
| AUD | Australian dollar | 1,2654 |
| CAD | Canadian dollar | 1,2678 |
| HKD | Hong Kong dollar | 10,0541 |
| NZD | New Zealand dollar | 1,5815 |
| SGD | Singapore dollar | 1,5834 |
| KRW | South Korean won | 1 441,35 |
| ZAR | South African rand | 11,1779 |
| CNY | Chinese yuan renminbi | 8,1267 |
| HRK | Croatian kuna | 7,5223 |
| IDR | Indonesian rupiah | 12 438,76 |
| MYR | Malaysian ringgit | 3,9658 |
| PHP | Philippine peso | 53,744 |
| RUB | Russian rouble | 40,2000 |
| THB | Thai baht | 39,740 |
| BRL | Brazilian real | 2,6428 |
| MXN | Mexican peso | 16,6949 |
| INR | Indian rupee | 68,5060 |

Currency

Exchange rate

USD

US dollar

1,2970

JPY

Japanese yen

101,70

DKK

Danish krone

7,4589

GBP

Pound sterling

0,80650

SEK

Swedish krona

8,6830

CHF

Swiss franc

1,2093

ISK

Iceland króna

NOK

Norwegian krone

7,4005

BGN

Bulgarian lev

1,9558

CZK

Czech koruna

24,950

HUF

Hungarian forint

281,40

LTL

Lithuanian litas

3,4528

LVL

Latvian lats

0,6961

PLN

Polish zloty

4,0978

RON

Romanian leu

4,5648

TRY

Turkish lira

2,3437

AUD

Australian dollar

1,2654

CAD

Canadian dollar

1,2678

HKD

Hong Kong dollar

10,0541

NZD

New Zealand dollar

1,5815

SGD

Singapore dollar

1,5834

KRW

South Korean won

1 441,35

ZAR

South African rand

11,1779

CNY

Chinese yuan renminbi

8,1267

HRK

Croatian kuna

7,5223

IDR

Indonesian rupiah

12 438,76

MYR

Malaysian ringgit

3,9658

PHP

Philippine peso

53,744

RUB

Russian rouble

40,2000

THB

Thai baht

39,740

BRL

Brazilian real

2,6428

MXN

Mexican peso

16,6949

INR

Indian rupee

68,5060

---

(1)  Source: reference exchange rate published by the ECB.

---

V Announcements

ADMINISTRATIVE PROCEDURES

European Commission

| 13.10.2012 | EN | Official Journal of the European Union | C 310/37 |
| --- | --- | --- | --- |

13.10.2012

EN

Official Journal of the European Union

C 310/37

---

Call for expressions of interest in membership in the multisectoral and independent expert panel to provide advice on effective ways of investing in health

2012/C 310/05

This call is addressed to experts who wish to be considered for membership in the multisectoral and independent expert panel to provide advice on effective ways of investing in health (‘the panel’) established by Commission Decision 2012/C 198/06 of 5 July 2012 (1).

The role of the panel is to provide the Commission with independent and multisectoral advice on effective ways of investing in health. The work of the panel is based on the principles of excellence, independence, multisectoral approach and transparency.

Composition and remit of the panel

The panel will consist of a maximum of 17 members and may associate, at its own initiative and with agreement from the Commission, external experts, as well as experts from other EU bodies to contribute to its work on specific issues. These associated experts participate in the activities and deliberations concerning the subject considered with the same functions, responsibilities and rights as the members of the panel.

Members of the panel are appointed by the Commission on the basis of their expertise in one or more of the fields of competence and collectively cover the widest possible range of disciplines. The fields of expertise are set out in Annex I to Decision 2012/C 198/06.

Members are appointed to the panel for a term of three years and may not serve more than three consecutive terms. They remain in office until they are replaced or their appointments are renewed.

Interested experts may apply for membership in the panel.

Eligibility

Applicants must have:

| — | a university degree in a relevant scientific area, |
| --- | --- |

—

a university degree in a relevant scientific area,

| — | at least 10 years’ professional experience, |
| --- | --- |

—

at least 10 years’ professional experience,

| — | good knowledge of the English language. |
| --- | --- |

—

good knowledge of the English language.

This call for expressions of interest is open to experts from Europe and elsewhere.

Selection criteria

Preference will be given to candidates who possess:

| — | professional experience of relevance for application to the fields of expertise listed in Annex I to Decision 2012/C 198/06, |
| --- | --- |

—

professional experience of relevance for application to the fields of expertise listed in Annex I to Decision 2012/C 198/06,

| — | experience in policy development and implementation, at regional, national, and international level, with special reference to the health sector, |
| --- | --- |

—

experience in policy development and implementation, at regional, national, and international level, with special reference to the health sector,

| — | proven scientific excellence in one or preferably several fields linked to the area covered by the panel, |
| --- | --- |

—

proven scientific excellence in one or preferably several fields linked to the area covered by the panel,

| — | professional experience in a multi-disciplinary and international environment, with special reference to the European context, |
| --- | --- |

—

professional experience in a multi-disciplinary and international environment, with special reference to the European context,

| — | managerial and communication skills, in particular in chairing and organising working groups, and in managing complex information and preparing synthesis documents. |
| --- | --- |

—

managerial and communication skills, in particular in chairing and organising working groups, and in managing complex information and preparing synthesis documents.

Selection process

The selection process will consist of three stages:

| (i) | verification of the admissibility of the applications and eligibility of applicants; |
| --- | --- |

(i)

verification of the admissibility of the applications and eligibility of applicants;

| (ii) | comparative evaluation and establishment of a list of the most suitable applicants; and |
| --- | --- |

(ii)

comparative evaluation and establishment of a list of the most suitable applicants; and

| (iii) | appointment of members of the panel from this list. |
| --- | --- |

(iii)

appointment of members of the panel from this list.

A selection board will be set up for stages (i) and (ii), composed of Commission officials responsible for policy and legislation in the areas of public health, health systems and scientific research, and external expertise.

In the process, the Commission will consider the selection criteria; independence (potential conflicts of interest); representation from different geographic regions and gender balance.

Appointment of members

The Director-General for Health and Consumers will appoint the members of the panel from the list of candidates established by the selection board.

The names of the appointed members of the panel will be published in the Register of the Commission expert groups and other similar entities (2) and on the website of the Directorate-General for Health and Consumers (3).

Independence

The members of the panel are appointed in a personal capacity. Applicants are required to include a declaration of commitment to act independently of any external influence and a declaration of any interests which might be considered prejudicial to their independence. They will be asked to confirm that, if appointed, they will agree to make both annual written declarations of interest and written and/or oral subject specific declarations of interest knowing that these will be made public.

Workload and indemnities

Applicants should be prepared to attend meetings on a regular basis, to contribute actively to scientific discussions, to examine documents and to make comments during meetings of the panel, to attend workshops and hearings on invitation and act as ‘chairs’ and/or ‘rapporteurs’ of working groups, on an ad hoc basis. Most of the working documents are in English and the meetings are also conducted in English. Applicants should take into account that meetings in general involve preparatory work. It is estimated that the panel will meet in plenary sessions between 5 and 10 times per year. Applicants should be willing to work with electronic methods for the management and exchange of documents and attend video or audio meetings.

Members of the panel and the external experts will be entitled to an indemnity related to their participation in the meetings of the panel and for serving as a rapporteur on a specific question. The indemnities are provided for in Annex II to Decision 2012/C 198/06.

Members will also be entitled to travel and subsistence allowances, in accordance with the rules laid down by the Commission.

Application procedure

Interested experts are invited to fill in and submit the online application form, which includes a curriculum vitae and a list of publications as attachments.

The announcement for the application procedure, the application form and the specific privacy statement are available at:

http://ec.europa.eu/health/healthcare/consultations/call_expertpanel_healthinnovation_en.htm

The deadline for submitting applications is 23 November 2012.

Only online applications submitted via the Internet link above will be considered.

An application will be deemed admissible only if it includes:

| — | a completed obligatory application form, |
| --- | --- |

—

a completed obligatory application form,

| — | a curriculum vitae, preferably not exceeding three pages (attached to the application form), |
| --- | --- |

—

a curriculum vitae, preferably not exceeding three pages (attached to the application form),

| — | a list of the applicant's scientific publications (attached to the application form), |
| --- | --- |

—

a list of the applicant's scientific publications (attached to the application form),

| — | a declaration of interests completed in a true manner (included in the application form). |
| --- | --- |

—

a declaration of interests completed in a true manner (included in the application form).

Supporting documents may be requested at a later stage. All expressions of interest will be treated confidentially.

The Commission will inform the candidates of the result of the selection procedures as soon as possible.

Contact information

For any further information on this call, please contact:

SANCO-CALL-PANEL@ec.europa.eu

Protection of personal data

The Commission will ensure that applicants’ personal data are processed as required by Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Union institutions and bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1). This applies in particular to the confidentiality and security of such data.

The Controller for the processing of personal data in the framework of this call is Tapani Piha, Head of Unit D3 of the Directorate-General for Health and Consumers.

For more detailed information on the scope, purposes and means of the processing of their personal data in the context of this call, applicants are invited to consult the specific privacy statement published on the call webpage at the address mentioned above.

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(1)  http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2012:198:0007:0011:EN:PDF

(2)  http://ec.europa.eu/transparency/regexpert/

(3)  http://ec.europa.eu/dgs/health_consumer/index_en.htm

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PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON COMMERCIAL POLICY

European Commission

| 13.10.2012 | EN | Official Journal of the European Union | C 310/40 |
| --- | --- | --- | --- |

13.10.2012

EN

Official Journal of the European Union

C 310/40

---

Notice to economic operators — New round of requests for the suspension of the autonomous Common Customs Tariff duties on certain industrial and agricultural products

2012/C 310/06

Economic operators are informed that the Commission has received requests in accordance with the administrative arrangements foreseen in the Commission communication concerning autonomous tariff suspensions and quotas (2011/C 363/02) (1) for the July round of 2013.

The list of the products for which a duty suspension is requested is now available on the Commission's thematic (Europa) website on the customs union (2).

Economic operators are also informed that the deadline for objections against new requests to reach the Commission, via the national administrations, is 10 December 2012 which is the date of the second scheduled meeting of the Economic Tariff Questions Group.

Interested operators are advised to consult the list regularly in order to be informed on the status of the requests.

More information on the autonomous tariff suspension procedure can be found on the Europa website:

http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/suspensions/index_en.htm

---

(1)  OJ C 363, 13.12.2011, p. 6.

(2)  http://ec.europa.eu/taxation_customs/dds2/susp/susp_home.jsp?Lang=en

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PROCEDURES RELATING TO THE IMPLEMENTATION OF COMPETITION POLICY

European Commission

| 13.10.2012 | EN | Official Journal of the European Union | C 310/41 |
| --- | --- | --- | --- |

13.10.2012

EN

Official Journal of the European Union

C 310/41

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Prior notification of a concentration

(Case COMP/M.6721 — First Reserve Management/SK Capital Partners/TPC)

Candidate case for simplified procedure

(Text with EEA relevance)

2012/C 310/07

| 1. | On 8 October 2012, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which the undertakings First Reserve Management, LP (‘First Reserve’, USA) and SK Capital Partners (‘SK’, USA) acquire within the meaning of Article 3(1)(b) of the Merger Regulation, joint control of the undertaking TPC Group Inc. (‘TPC’, USA) by way of purchase of shares. |
| --- | --- |

1.

On 8 October 2012, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which the undertakings First Reserve Management, LP (‘First Reserve’, USA) and SK Capital Partners (‘SK’, USA) acquire within the meaning of Article 3(1)(b) of the Merger Regulation, joint control of the undertaking TPC Group Inc. (‘TPC’, USA) by way of purchase of shares.

| 2. | The business activities of the undertakings concerned are:






  — | for First Reserve: private equity and infrastructure investment specialising in the energy industry, including oilfield services, energy infrastructure and power and energy reserves, |
| --- | --- | --- |

2.

The business activities of the undertakings concerned are:

—

for First Reserve: private equity and infrastructure investment specialising in the energy industry, including oilfield services, energy infrastructure and power and energy reserves,

| — | for SK: private investment firm with a focus on the specialty materials, chemicals and healthcare sectors, and, |
| --- | --- |

—

for SK: private investment firm with a focus on the specialty materials, chemicals and healthcare sectors, and,

| — | for TPC: manufacture of value added products derived from petrochemical raw materials, such as C4 and C3 hydrocarbons, which are used in the manufacture of performance and specialty chemicals. |
| --- | --- |

—

for TPC: manufacture of value added products derived from petrochemical raw materials, such as C4 and C3 hydrocarbons, which are used in the manufacture of performance and specialty chemicals.

| 3. | On preliminary examination, the Commission finds that the notified transaction could fall within the scope of the EC Merger Regulation. However, the final decision on this point is reserved. Pursuant to the Commission Notice on a simplified procedure for treatment of certain concentrations under the EC Merger Regulation (2) it should be noted that this case is a candidate for treatment under the procedure set out in the Notice. |
| --- | --- |

3.

On preliminary examination, the Commission finds that the notified transaction could fall within the scope of the EC Merger Regulation. However, the final decision on this point is reserved. Pursuant to the Commission Notice on a simplified procedure for treatment of certain concentrations under the EC Merger Regulation (2) it should be noted that this case is a candidate for treatment under the procedure set out in the Notice.

| 4. | The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.
  Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax (+32 22964301), by email to COMP-MERGER-REGISTRY@ec.europa.eu or by post, under reference number COMP/M.6721 — First Reserve Management/SK Capital Partners/TPC, to the following address:





  European Commission |
| --- | --- |
| Directorate-General for Competition |
| Merger Registry |
| J-70 |
| 1049 Bruxelles/Brussel |
| BELGIQUE/BELGIË |

4.

The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.

Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax (+32 22964301), by email to COMP-MERGER-REGISTRY@ec.europa.eu or by post, under reference number COMP/M.6721 — First Reserve Management/SK Capital Partners/TPC, to the following address:

European Commission

Directorate-General for Competition

Merger Registry

J-70

1049 Bruxelles/Brussel

BELGIQUE/BELGIË

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(1)  OJ L 24, 29.1.2004, p. 1 (the ‘EC Merger Regulation’).

(2)  OJ C 56, 5.3.2005, p. 32 (‘Notice on a simplified procedure’).

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