(5)

Article 2 shall be amended as follows: (a) point (a) shall be amended as follows: (i) the first indent shall be replaced by the following: ‘— between three or more participants, excluding the system operator of that system, a possible settlement agent, a possible central counterparty, a possible clearing house or a possible indirect participant, with common rules and standardised arrangements for the clearing, whether or not through a central counterparty, or execution of transfer orders between the participants,’; (ii) the following subparagraph is added: ‘An arrangement entered into between interoperable systems shall not constitute a system.’; (b) in point (b), the first and second indents are replaced by the following: ‘— a credit institution as defined in Article 4(1) of 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 (recast) (9) including the institutions listed in Article 2 of that Directive, — an investment firm as defined in Article 4(1)(1) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (10), excluding the institutions set out in Article 2(1) thereof, (c) point (f) shall be amended as follows: (i) the first subparagraph shall be replaced by the following: ‘(f) “participant” shall mean an institution, a central counterparty, a settlement agent, a clearing house or a system operator.’; (ii) the third subparagraph shall be replaced by the following: ‘A Member State may decide that, for the purposes of this Directive, an indirect participant may be considered a participant if that is justified on the grounds of systemic risk. Where an indirect participant is considered to be a participant on grounds of systemic risk, this does not limit the responsibility of the participant through which the indirect participant passes transfer orders to the system.’; (d) point (g) shall be replaced by the following: ‘(g) “indirect participant” shall mean an institution, a central counterparty, a settlement agent, a clearing house or a system operator with a contractual relationship with a participant in a system executing transfer orders which enables the indirect participant to pass transfer orders through the system, provided that the indirect participant is known to the system operator.’; (e) point (h) shall be replaced by the following: ‘(h) “securities” shall mean all instruments referred to in section C of Annex I to Directive 2004/39/EC;’; (f) in point (i), the first indent shall be replaced by the following: ‘— any instruction by a participant to place at the disposal of a recipient an amount of money by means of a book entry on the accounts of a credit institution, a central bank, a central counterparty or a settlement agent, or any instruction which results in the assumption or discharge of a payment obligation as defined by the rules of the system, or’; (g) point (l) shall be replaced by the following: ‘(l) “settlement account” shall mean an account at a central bank, a settlement agent or a central counterparty used to hold funds or securities and to settle transactions between participants in a system;’; (h) point (m) shall be replaced by the following: ‘(m) “collateral security” shall mean all realisable assets, including, without limitations, financial collateral referred to in Article 1(4)(a) of Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (11), provided under a pledge (including money provided under a pledge), a repurchase or similar agreement, or otherwise, for the purpose of securing rights and obligations potentially arising in connection with a system, or provided to central banks of the Member States or to the European Central Bank; (i) the following points shall be added: ‘(n) “business day” shall cover both day and night-time settlements and shall encompass all events happening during the business cycle of a system; (o) “interoperable systems” shall mean two or more systems whose system operators have entered into an arrangement with one another that involves cross-system execution of transfer orders; (p) “system operator” shall mean the entity or entities legally responsible for the operation of a system. A system operator may also act as a settlement agent, central counterparty or clearing house.’.