Commission Implementing Regulation (EU) 2022/1650 of 24 March 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2016/1646 as regards the main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance)
Date: 2022-03-24
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: credit institution, financial control, investment company, market supervision, private-sector liquidity, securities, stock exchange, technical standard, trade information




L_2022249EN.01000101.xml










27.9.2022   


EN


Official Journal of the European Union


L 249/1








            COMMISSION IMPLEMENTING REGULATION (EU) 2022/1650
of 24 March 2022
         
amending the implementing technical standards laid down in Implementing Regulation (EU) 2016/1646 as regards the main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council
(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 amending Regulation (EU) No 648/2012 (1), and in particular Article 197(8) thereof,

Whereas:







(1)


Commission Implementing Regulation (EU) 2016/1646 (2) was adopted on the premise that equity indices, to be considered as main indices for the purposes of Regulation (EU) No 575/2013 (and hence allowing institutions to use the equities composing these indices as eligible collateral) should mainly consist of equities that can reasonably be expected to be realisable when an institution needs to liquidate them. It was assumed that that would 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. That assumption remains unchanged.












(2)


Implementing Regulation (EU) 2016/1646 also specifies that institutions should also have the possibility to recognise as eligible collateral instruments included in main indices that do not meet the abovementioned criteria, but whose components are sufficiently traded, and considers new criteria for the identification of those indices. However, experience has demonstrated that those criteria, defined with respect to the market in which an index is based, are difficult to apply against a main index established in a third country, as they require collecting data for all the shares admitted to trading in that market. That difficulty has inhibited the proper achievement of the objective of Regulation (EU) No 575/2013 to ensure a minimum threshold of liquidity of the index components. It is therefore necessary to lay down new criteria that would address the identified shortcomings. Those new criteria should ensure the adequacy of the instruments as eligible collateral and hence, ensure a sufficient liquidity threshold independently from the market on which an index is based, where two conditions related to standard market liquidity indicators are fulfilled. The first condition should require that at least 80 % of the components of an index have a free float of at least EUR 25 000 000 or, in the absence of information about free float, a market capitalisation of at least EUR 50 000 000. The second condition should require that all components of the index having a market capitalisation smaller than or equal to EUR 10 000 000 000 have a minimum average daily turnover of EUR 500 000 and all components of the index having a market capitalisation greater than EUR 10 000 000 000 have a minimum average daily turnover of EUR 1 000 000. The average daily turnover should be calculated over the 12 months of the calendar year preceding the assessment, or where applicable, the period of the 12 months of the preceding calendar year during which the financial instrument was available for trading.












(3)


The definition of ‘recognised exchange’, laid down in Article 4(1), point (72), of Regulation (EU) No 575/2013, was most recently amended by Regulation (EU) 2019/2033 of the European Parliament and of the Council (3). That amendment consisted of the addition, in point (a) of that point (72), of the words “or a third-country market that is considered to be equivalent to a regulated market in accordance with the procedure set out in point (a) of Article 25(4) of Directive 2014/65/EU of the European Parliament and of the Council”. Due to that amendment, ‘recognised exchanges’ are no longer restricted to ‘regulated markets’ only. That amendment should be reflected in Implementing Regulation (EU) 2016/1646 by including in that Regulation those exchanges for which the Commission has adopted an equivalence decision pursuant to Article 25(4), point (a), of Directive 2014/65/EU of the European Parliament and of the Council (4).












(4)


Following the withdrawal of the United Kingdom from the Union pursuant to Article 50 of the Treaty on European Union, the Treaties have ceased to apply to the United Kingdom from 1 February 2020 and the United Kingdom is now a third country. At present, the Commission has not adopted an equivalence decision in accordance with Article 25(4), point (a), of Directive 2014/65/EU in respect of the United Kingdom. It is therefore necessary to exclude from the list of recognised exchanges those exchanges established in the United Kingdom.












(5)


Certain changes have occurred in the market structure since the entry into force of Implementing Regulation (EU) 2016/1646, particularly as regards the appearance of new exchanges, mergers, name changes or cessation of activities. Those changes should be reflected in Implementing Regulation (EU) 2016/1646.












(6)


Implementing Regulation (EU) 2016/1646 should therefore be amended accordingly.












(7)


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












(8)


ESMA has conducted open public consultation on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and has requested the advice 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 (5).





HAS ADOPTED THIS REGULATION:



Article 1

Amendments to Implementing Regulation (EU) 2016/1646

Implementing Regulation (EU) 2016/1646 is amended as follows:






(1)


Annex I to Implementing Regulation (EU) 2016/1646 is replaced by the text set out in Annex I to this Regulation.










(2)


Annex II to Implementing Regulation (EU) 2016/1646 is replaced by the text set out in Annex II to this Regulation.






Article 2

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, 24 March 2022.


For the Commission


The President

Ursula VON DER LEYEN
            





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

(2)  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 (OJ L 245, 14.9.2016, p. 5).

(3)  Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (OJ L 314, 5.12.2019, p. 1).

(4)  Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).

(5)  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




Austrian Traded Index


Austria




BEL 20


Belgium




CETOP20


Central Europe




CNX 100


India




CSI 300 Index


China




EGX 30


Egypt




FTSE 350


UK




FTSE All World Europe


Europe




FTSE All-World Index


Global




FTSE MIB


Italy




FTSE Nasdaq Dubai UAE 20 Index


UAE




FTSE RAFI Emerging Index


Emerging markets




FTSE Straits Times Index


Singapore




FTSE/JSE Capped Top 40


South Africa




FTSE/JSE Industrial 25


South Africa




Hang Seng Mainland 100 Index


Hong Kong




HDAX


Germany




IBEX 35


Spain




IBOVESPA


Brazil




ISEQ 20


Ireland




KOSPI 100


South Korea




MSCI ACWI Index


Global




MSCI EM 50


Emerging markets




NASDAQ-100


USA




Nikkei 300


Japan




NYSE ARCA China Index


China




OBX


Norway




OMX Copenhagen 25


Denmark




OMX Helsinki 25


Finland




OMXS60


Sweden




Qatar Exchange General Index


Qatar




S&P 500


USA




S&P BSE 100


India




S&P Latin America 40


Latin America




S&P/ASX 100


Australia




S&P/BMV IPC


Mexico




S&P/NZX 10


New Zealand




S&P/TSX 60


Canada




SBF 120


France




SET 50


Thailand




SMI Expanded


Switzerland




STOXX Asia/Pacific 600


Asia/Pacific




STOXX Europe 600


Europe




TOPIX Mid 400


Japan




TSEC Taiwan 50


Taiwan




WIG20


Poland









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




AIAF – MERCADO DE RENTA FIJA


XDRF, SEND




ATHENS EXCHANGE SECURITIES MARKET


XATH




BADEN-WUERTTEMBERGISCHE WERTPAPIERBOERSE


STUC, STUA




BOERSE BERLIN


BERC, BERA, EQTB, EQTA




BOERSE DUESSELDORF


DUSC, DUSA




BOERSE MUENCHEN


MUNC, MUNA




BOLSA DE BARCELONA


XBAR, SBAR




BOLSA DE BILBAO


XBIL, SBIL




BOLSA DE MADRID


XMAD, MERF




BOLSA DE VALENCIA


XVAL




BONDSPOT SECURITIES MARKET


RPWC




BOURSE DE LUXEMBOURG


XLUX




BRATISLAVA STOCK EXCHANGE


XBRA




BUCHAREST STOCK EXCHANGE


XBSE




BUDAPEST STOCK EXCHANGE


XBUD




BULGARIAN STOCK EXCHANGE – SOFIA JSC


XBUL




CBOE EUROPE


CCXE




CME AMSTERDAM


BTAM




CYPRUS STOCK EXCHANGE


XCYS




ELECTRONIC BOND MARKET


MOTX




ELECTRONIC ETF AND ETC/ETN MARKET – ETFplus


ETFP




ELECTRONIC SECONDARY SECURITIES MARKET


HDAT




ELECTRONIC SHARE MARKET


MTAA




EURONEXT AMSTERDAM


XAMS




EURONEXT BRUSSELS


XBRU




EURONEXT DUBLIN


XMSM




EURONEXT EXPAND


XOAS




EURONEXT LISBON


XLIS




EURONEXT OSLO


XOSL




EURONEXT PARIS


XPAR




FRANKFURTER WERTPAPIERBOERSE (REGULIERTER MARKT)


FRAA, XETA




HANSEATISCHE WERTPAPIERBOERSE HAMBURG (REGULIERTER MARKT)


HAMA, HAMM




LJUBLJANA STOCK EXCHANGE OFFICIAL MARKET


XLJU




MALTA STOCK EXCHANGE


XMAL, IFSM




MARKET FOR INVESTMENT VEHICLES (MIV)


MIVX




MTS GOVERNMENT MARKET


MTSC




NASDAQ COPENHAGEN


XCSE




NASDAQ HELSINKI


XHEL




NASDAQ ICELAND


XICE




NASDAQ RIGA


XRIS




NASDAQ STOCKHOLM


XSTO




NASDAQ TALLINN


XTAL




NASDAQ VILNIUS


XLIT




NIEDERSAECHSISCHE BOERSE ZU HANNOVER (REGULIERTER MARKT)


HANA




NORDIC GROWTH MARKET NGM


XNGM




NXCHANGE


XNXC




PRAGUE STOCK EXCHANGE


XPRA




RM-SYSTEM CZECH STOCK EXCHANGE


XRMZ




TRADEGATE EXCHANGE (REGULIERTER MARKT)


XGRM




VIENNA STOCKEXCHANGE OFFICIAL MARKET (AMTLICHER HANDEL)


WBAH




WARSAW STOCK EXCHANGE


XWAR, WBON, WETP




ZAGREB STOCK EXCHANGE


XZAG




ASX LIMITED


XASX




CHI-X AUSTRALIA PTY LTD


CHIA




THE STOCK EXCHANGE OF HONG KONG LIMITED (SEHK)


SHKG




BOX OPTIONS EXCHANGE LLC


XBOX




CBOE BYX EXCHANGE, INC. (FORMERLY BATS BYX EXCHANGE, INC.; BATS Y-EXCHANGE, INC.)


BATY




CBOE BZX EXCHANGE, INC. (FORMERLY BATS BZX EXCHANGE, INC.; BATS EXCHANGE, INC.)


BATS




CBOE C2 EXCHANGE, INC.


C2OX




CBOE EDGA EXCHANGE, INC. (FORMERLY BATS EDGA EXCHANGE, INC.; EDGA EXCHANGE, INC.)


EDGA




CBOE EDGX EXCHANGE, INC. (FORMERLY BATS EDGX EXCHANGE, INC.; EDGX EXCHANGE, INC.)


EDGX




CBOE EXCHANGE, INC.


CBSX




CHICAGO STOCK EXCHANGE, INC.


XCHI




THE INVESTORS EXCHANGE LLC


IEXG




MIAMI INTERNATIONAL SECURITIES EXCHANGE


XMIO




MIAX PEARL, LLC


MPRL




NASDAQ BX, INC. (FORMERLY NASDAQ OMX BX, INC.; BOSTON STOCK EXCHANGE)


BOSD




NASDAQ GEMX, LLC (FORMERLY ISE GEMINI)


GMNI




NASDAQ ISE, LLC (FORMERLY INTERNATIONAL SECURITIES EXCHANGE, LLC)


XISX




NASDAQ MRX, LLC (FORMERLY ISE MERCURY)


MCRY




NASDAQ PHLX LLC (FORMERLY NASDAQ OMX PHLX, LLC; PHILADELPHIA STOCK EXCHANGE)


XPHL




THE NASDAQ STOCK MARKET


XNAS




NEW YORK STOCK EXCHANGE LLC


XNYS




NYSE ARCA, INC.


ARCX




AQUA SECURITIES L.P.


AQUA




ATS-1


MSTX




ATS-4


MSPL




ATS-6


MSRP




BARCLAYS ATS


BARX




BARCLAYS DIRECTEX


BCDX




BIDS TRADING, L.P.


BIDS




CIOI


CIOI




CITIBLOC


CBLC




CITICROSS


CICX




CODA MARKETS, INC


CODA




CREDIT SUISSE SECURITIES (USA) LLC


CAES




DEUTSCHE BANK SECURITIES, INC


DBSX




EBX LLC


LEVL




INSTINCT X


BAML




INSTINET CONTINUOUS BLOCK CROSSING SYSTEM (CBX)


ICBX




INSTINET, LLC (INSTINET CROSSING, INSTINET BLX)


XINS




INSTINET, LLC (BLOCKCROSS)


BLKX




JPB-X


JPBX




J.P. MORGAN ATS (‘JPM-X’)


JPMX




JSVC LLC



 (*)





LIQUIDNET H2O ATS


LIUH




LIQUIDNET NEGOTIATION ATS


LIUS




LUMINEX TRADING & ANALYTICS LLC


LMNX




NATIONAL FINANCIAL SERVICES, LLC


NFSC




POSIT


ITGI




SIGMA X2


SGMT




SPOT QUOTE LLC



 (*)





SPREAD ZERO LLC



 (*)





UBS ATS


UBSS




USTOCKTRADE



 (*)





VIRTU MATCHIT


VFMI




XE


PJCX








Table 2


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







Regulated market


MIC




ATHENS EXCHANGE DERIVATIVES MARKET


XADE




BUDAPEST STOCK EXCHANGE


XBUD




CBOE DERIVATIVES


CDEX




EUREX DEUTSCHLAND


XEUR




EURONEXT BRUSSELS DERIVATIVES


XBRD




EURONEXT COM\, COMMODITIES FUTURES AND OPTIONS


XEUC




EURONEXT EQF\, EQUITIES AND INDICES DERIVATIVES


XEUE




EUROPEAN ENERGY EXCHANGE


XEEE, XEER




FISH POOL


FISH




HENEX FINANCIAL ENERGY MARKET – DERIVATIVES MARKET


HEDE




HUDEX ENERGY EXCHANGE


HUDX




ICE ENDEX MARKETS


NDEX




ITALIAN DERIVATIVES MARKET


XDMI




MATIF


XMAT




MEFF EXCHANGE


XMRV, XMPW, XMFX




MERCADO DE FUTUROS E OPCOES


MFOX




MONEP


XMON




NASDAQ OSLO


NORX




NASDAQ STOCKHOLM


XSTO




NOREXECO


NEXO




OMIP – POLO PORTUGUES


OMIP




OSLO BØRS


XOSL




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


PLPD




WARSAW STOCK EXCHANGE/FINANCIAL DERIVATIVES


WDER






(*)  MIC codes not available on the ISO 10383 – Codes for exchanges and market identification list