United Kingdom (and EU regulation)

Commission communication to the Council on the adoption of a Regulation on a framework for the recovery and resolution of CCPs

On 18 November 2020, there was published:

A communication from the Commission to the European Parliament pursuant to Article 294(6) of the Treaty on the Functioning of the European Union concerning the position of the Council on the adoption of a Regulation of the European Parliament and of the Council on a framework for the recovery and resolution of central counterparties (CCPs) and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, and (EU) 2015/2365. The position of the Council reflects the political agreement reached between the European Parliament and the Council on 23 June 2020. The Commission supports this agreement. The political agreement introduced several changes that deviate from the initial Commission proposal and these are described in the communication. The Commission supports the results of the inter-institutional negotiations and accepts the Council’s position at first reading. However, it expresses certain institutional concerns which are expressed in section H., point (iii) of the communication concerning open access.

Statement of the Council’s reasons: Position of the Council at first reading in view of the adoption of a Regulation of the European Parliament and of the Council on a framework for the recovery and resolution of CCPs and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, (EU) No 600/2014, (EU) No 806/2014 and (EU) 2015/2365 and Directives 2002/47/EC, 2004/25/EC, 2007/36/EC, 2014/59/EU and (EU) 2017/1132. The Council provides an analysis of its position at first reading. The Council concludes that its position at first reading reflects the compromise reached in the negotiations between the Council and the European Parliament with the support of the Commission. The Council believes that its position at first reading represents a balanced package and that, if its position is approved by the European Parliament, the Regulation regarding CCP recovery and resolution will ensure that both CCPs and national authorities in the EU have the means to act decisively in cases where a CCP faces severe distress or failure, and that it will contribute to the establishment of the Capital Markets Union.