Commission Implementing Regulation (EU) 2016/1646 of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms (Text with EEA relevance)
Date: 2016-09-13
Institutions: European Commission
Subjects: credit institution, financial control, investment company, market supervision, private-sector liquidity, securities, stock exchange, technical standard, trade information








L_2016245EN.01000501.xml










14.9.2016   


EN


Official Journal of the European Union


L 245/5








            COMMISSION IMPLEMENTING REGULATION (EU) 2016/1646
of 13 September 2016
         
laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms
(Text with EEA relevance)


THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,


Having regard to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (1) and in particular Article 197(8) thereof,

Whereas:







(1)


Regulation (EU) No 575/2013 states that equities or convertible bonds included in a main index may be used by institutions as eligible collateral. One of the eligibility criteria for collateral is that it should be sufficiently liquid. To be considered as main indices for the purposes of that Regulation, equity indices should therefore mainly consist of equities that can reasonably be expected to be realisable when an institution needs to liquidate them. This should be the case when at least 90 % of the components of an index have a free float of at least EUR 500 000 000 or, in the absence of information about free float, a market capitalisation of at least EUR 1 000 000 000.












(2)


It should also be possible for institutions to recognise as eligible collateral instruments that are liquid relative to the markets in which they are operating and meet a minimum level of liquidity, irrespective of whether a market is established in the Union or in a third country. Therefore, an equity index should be considered as a main index where it includes no more than half of the total number of companies whose shares are traded on the market on which the index is based, where the average daily turnover is at least EUR 100 000, and where it also meets two of the following three criteria: the total market capitalisation of the index is at least 40 % of the market capitalisation of all the companies whose shares are traded on that market; the total turnover of trading in the components of the index is at least 40 % of the total turnover of all equity trading on that market; and the index serves as an underlying for derivatives products.












(3)


Convertible bond indices should be considered as main indices only where the constituent bonds can be converted into equities where at least 90 % of those equities have a free float of at least EUR 500 000 000 or, in the absence of information about free float, a market capitalisation of at least EUR 1 000 000 000.












(4)


Where two indices meet the criteria to be considered a main index and one is a subset of the other, for simplicity only the broader one should be included in the list of main indices.












(5)


Regulation (EU) No 575/2013 states that debt securities issued by certain institutions, not having a credit assessment by an external credit assessment institution (ECAI) may be used as eligible collateral where they fulfil a number of conditions, one of them being that they are listed on a recognised exchange.












(6)


In order to be considered a recognised exchange for the purposes of Regulation (EU) No 575/2013, an exchange is required to meet the conditions laid down in Article 4(1)(72) of that Regulation. Regarding one of those conditions, namely that the exchange should have a clearing mechanism, all regulated markets trading financial instruments not listed in Annex II to Regulation (EU) No 575/2013 should satisfy this second condition by virtue of being licensed as a regulated market under Directive 2004/39/EC of the European Parliament and of the Council (2) and by virtue of the existence of rules and procedures for the clearing and settlement of transactions in place as required under that Directive 2004/39/EC.












(7)


Where an exchange's clearing mechanism is provided by a central counterparty (CCP), that CCP should comply with the requirements laid down in Regulation (EU) No 648/2012 of the European Parliament and of the Council (3). For the rare derivatives exchanges not served by CCPs, the margining rules laid down in Regulation (EU) No 648/2012 should be used as the benchmark for assessing whether the margining requirements imposed by those exchanges are appropriate.












(8)


This Regulation is based on the draft implementing technical standards submitted by the European Securities and Markets Authority (ESMA) to the Commission.












(9)


On 17 December 2015, the Commission notified ESMA of its intention to endorse the draft implementing technical standard with amendments to take account of the fact that some equity indices that meet the eligibility criteria to be considered as main indices were not included in the list provided in that draft standard. In its formal opinion of 28 January 2016, ESMA confirmed its initial position and did not resubmit an implementing technical standard amended in a way consistent with the Commission's proposed amendments. The draft implementing technical standard should therefore be endorsed with the amendments necessary to avoid the exclusion of indices that meet the eligibility criteria to be considered as main indices for the purposes of Regulation (EU) No 575/2013.












(10)


ESMA has conducted an open public consultation on the draft implementing technical standards on which this Regulation is based and has requested the opinion of the Securities and Markets Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council (4). ESMA has not analysed in detail the potential costs and benefits related to the draft implementing technical standards as this would have been disproportionate in relation to their scope and impact,





HAS ADOPTED THIS REGULATION:



Article 1

Main indices

The main indices for the purposes of Article 197(8)(a) of Regulation (EU) No 575/2013 are specified in Annex I to this Regulation.


Article 2

Recognised exchanges

The recognised exchanges for the purposes of Article 197(8)(b) of Regulation (EU) No 575/2013 are specified in Annex II to this Regulation.


Article 3

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.




This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 13 September 2016.


For the Commission


The President

Jean-Claude JUNCKER
            





(1)  
            OJ L 176, 27.6.2013, p. 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).

(3)  Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1).

(4)  Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).




ANNEX I

MAIN INDICES SPECIFIED UNDER ARTICLE 197 OF REGULATION (EU) No 575/2013


Table 1


Equity indices







Index


Country/Area




STOXX Asia/Pacific 600


Asia/Pacific




ASX100


Australia




ATX Prime (1)



Austria




BEL20


Belgium




IBOVESPA


Brazil




TSX60


Canada




CETOP20 Index


Central Europe




Hang Seng Mainland 100 Index (China)


China




NYSE ARCA China Index


China




Shanghai Shenzhen CSI 300


China




PX Prague


Czech Republic




OMX Copenhagen 20


Denmark




FTSE RAFI Emerging Markets


Emerging Markets




MSCI Emerging Markets 50


Emerging Markets




FTSE Europe Index


Europe




STOXX Europe 600


Europe




MSCI AC Europe & Middle East


Europe and Middle East




OMXH25


Finland




SBF120 (2)



France




S&P BMI France


France




HDAX (3)



Germany




FTSE All World Index


Global




MSCI ACWI


Global




FT ASE Large Cap


Greece




Hang Seng


Hong Kong




Hang Seng Composite Index


Hong Kong




CNX 100 Index


India




S&P BSE 100 Index


India




ISEQ 20


Ireland




FTSE MIB


Italy




Nikkei 300


Japan




TOPIX mid 400


Japan




S&P Latin America 40


Latin America




FTSE Bursa Malaysia KLCI Index


Malaysia




Mexico Bolsa Index


Mexico




AEX


Netherlands




S&P NZX 15 Index


New Zealand




OBX


Norway




WIG20


Poland




PSI 20


Portugal




MSCI Russia Index


Russia




Russian Traded Index


Russia




FTSE Straits Times Index


Singapore




FTSE JSE Top 40


South Africa




INDI 25 Index


South Africa




KOSPI 100


South Korea




IBEX35


Spain




OMXS60


Sweden




OMXSB


Sweden




SMI Expanded Index


Switzerland




TSEC Taiwan 50


Taiwan




FTSE Nasdaq Dubai UAE 20 Index


UAE




FTSE 350 (4)



UK




NASDAQ100


USA




Russell 3000 Index


USA




S&P 500


USA








Table 2


Convertible bond indices







Exane ECI-Europe


Europe




Jefferies JACI Global


Global




Thomson Reuters Global Convertible


Global






(1)  Includes the ATX.

(2)  Includes the CAC40, CAC Next 20, and CAC Mid Cap.

(3)  Includes the DAX and MDAX.

(4)  Includes the FTSE 100.





ANNEX II

RECOGNISED EXCHANGES SPECIFIED UNDER ARTICLE 197 OF REGULATION (EU) No 575/2013


Table 1


Recognised exchanges on which contracts listed in Annex II of Regulation (EU) No 575/2013 are not traded







Regulated market


MIC




EURONEXT PARIS


XPAR




BOERSE BERLIN (REGULIERTER MARKT)


BERA




BOERSE BERLIN (BERLIN SECOND REGULATED MARKET)


BERC




BOERSE DUESSELDORF (REGULIERTER MARKT)


DUSA




BOERSE DUESSELDORF — QUOTRIX (REGULIERTER MARKT)


DUSC




BOERSE BERLIN EQUIDUCT TRADING (REGULIERTER MARKT)


EQTA




BOERSE BERLIN EQUIDUCT TRADING (BERLIN SECOND REGULATED MARKET)


EQTB




HANSEATISCHE WERTPAPIERBOERSE HAMBURG (REGULIERTER MARKT)


HAMA




NIEDERSAECHSISCHE BOERSE ZU HANNOVER (REGULIERTER MARKT)


HANA




BOERSE MUENCHEN (REGULIERTER MARKT)


MUNA




BOERSE MUENCHEN — MARKET MAKER MUNICH (REGULIERTER MARKT)


MUNC




BADEN-WUERTTEMBERGISCHE WERTPAPIERBOERSE (REGULIERTER MARKT)


STUA




FRANKFURTER WERTPAPIERBOERSE (REGULIERTER MARKT)


FRAA, XETA




TRADEGATE EXCHANGE (REGULIERTER MARKT)


XGRM




IRISH STOCK EXCHANGE — MAIN SECURITIES MARKET


XDUB




EURONEXT LISBON


XLIS




BOLSA DE BARCELONA


XBAR, XMCE




BOLSA DE BILBAO


XBIL, XMCE




BOLSA DE MADRID


XMAD, XMCE, MERF




BOLSA DE VALENCIA


XVAL, XMCE




BONDVISION MARKET


BOND




ELECTRONIC OPEN-END FUNDS AND ETC MARKET


ETFP




MARKET FOR INVESTMENT VEHICLES (MIV)


MIVX




ELECTRONIC BOND MARKET


MOTX




ELECTRONIC SHARE MARKET


MTAA




MTS GOVERNMENT MARKET


MTSC




MTS CORPORATE MARKET


MTSM




SECURITISED DERIVATIVES MARKET


SEDX




MERCADO DE DEUDA PUBLICA EN ANOTACIONES


XDPA




AIAF — MERCADO DE RENTA FIJA


XDRF, SEND




BOURSE DE LUXEMBOURG


XLUX




CYPRUS STOCK EXCHANGE


XCYS




SPOT REGULATED MARKET — BMFMS


SBMF




SPOT REGULATED MARKET — BVB


XBSE




RM-SYSTEM CZECH STOCK EXCHANGE


XRMZ




PRAGUE STOCK EXCHANGE


XPRA




BATS EUROPE REGULATED MARKET


BATE, CHIX




ISDX MAIN BOARD


ISDX




EURONEXT LONDON


XLDN




LONDON STOCK EXCHANGE — REGULATED MARKET


XLON




NASDAQ RIGA


XRIS




NASDAQ STOCKHOLM


XSTO




NORDIC GROWTH MARKET NGM


XNGM




NASDAQ COPENHAGEN


XCSE




OSLO AXESS


XOAS




OSLO BØRS


XOSL




NASDAQ TALLINN


XTAL




NASDAQ HELSINKI


XHEL




VIENNA STOCKEXCHANGE OFFICIAL MARKET (AMTLICHER HANDEL)


WBAH




VIENNA STOCKEXCHANGE SECOND REGULATED MARKET (GEREGELTER FREIVERKEHR)


WBGF




BULGARIAN STOCK EXCHANGE — SOFIA JSC


XBUL




NASDAQ ICELAND


XICE




BUDAPEST STOCK EXCHANGE


XBUD




BRATISLAVA STOCK EXCHANGE


XBRA




NASDAQ VILNIUS


XLIT




EURONEXT BRUSSELS


XBRU




ZAGREB STOCK EXCHANGE


XZAG




ELECTRONIC SECONDARY SECURITIES MARKET


HDAT




ATHENS EXCHANGE SECURITIES MARKET


XATH




EUROPEAN WHOLESALE SECURITIES MARKET


EWSM




MALTA STOCK EXCHANGE


XMAL




EURONEXT AMSTERDAM


XAMS




BONDSPOT SECURITIES MARKET


RPWC




WARSAW STOCK EXCHANGE


XWAR,WBON, WETP




LJUBLJANA STOCK EXCHANGE OFFICIAL MARKET


XLJU




GIBRALTAR STOCK EXCHANGE


GSXL








Table 2


Recognised exchanges on which contracts listed in Annex II of Regulation (EU) No 575/2013 are traded







Regulated market


MIC




MATIF


XMAT




MONEP


XMON




POWERNEXT DERIVATIVES


XPOW




EUROPEAN ENERGY EXCHANGE


XEEE




EUREX DEUTSCHLAND


XEUR




MERCADO DE FUTUROS E OPCOES


MFOX




MERCADO REGULAMENTADO DE DERIVADOS DO MIBEL


OMIP




MEFF EXCHANGE


XMRV, XMPW




MERCADO DE FUTUROS DE ACEITE DE OLIVA — SA


XSRM




DERIVATIVES REGULATED MARKET — BMFMS


BMFM




POWER EXCHANGE CENTRAL EUROPE


XPXE




CME EUROPE LIMITED


CMED




ICE FUTURES EUROPE — ENERGY PRODUCTS DIVISION


IFEU




ICE FUTURES EUROPE — FINANCIAL PRODUCTS DIVISION


IFLL




ICE FUTURES EUROPE — EQUITY PRODUCTS DIVISION


IFLO




ICE FUTURES EUROPE — AGRICULTURAL PRODUCTS DIVISION


IFLX




THE LONDON INTERNATIONAL FINANCIAL FUTURES AND OPTIONS EXCHANGES (LIFFE)


XLIF




THE LONDON METAL EXCHANGE


XLME




LONDON STOCK EXCHANGE DERIVATIVES MARKET


XLOD




ITALIAN DERIVATIVES MARKET


XDMI




NASDAQ STOCKHOLM


XSTO




FISH POOL


FISH




NOREXECO


NEXO




NASDAQ OSLO


NORX




OSLO BØRS


XOSL




EURONEXT BRUSSELS DERIVATIVES


XBRD




ATHENS EXCHANGE DERIVATIVES MARKET


XADE




VIENNA STOCKEXCHANGE OFFICIAL MARKET (AMTLICHER HANDEL)


WBAH




BUDAPEST STOCK EXCHANGE


XBUD




ICE ENDEX DERIVATIVES


NDEX




EURONEXT EQF — EQUITIES AND INDICES DERIVATIVES


XEUE




WARSAW STOCK EXCHANGE/COMMODITIES/POLISH POWER EXCHANGE/COMMODITY DERIVATIVES


PLPD