Regulation (EU) No 648/2012 has been amended by Regulation (EU) 2019/2099 of the European Parliament and of the Council2 as regards, among other things, the procedures for the authorisation of CCPs and the authorities involved in such authorisation, and requirements for the recognition of third-country CCPs. Those amendments include changes to the composition, functioning and management of CCP colleges. Those changes should be reflected in Commission Delegated Regulation (EU) No 876/20133.

According to Article 18(2), points (ca) and (i), of Regulation (EU) No 648/2012, the CCP’s competent authority is to provide full and detailed reasons in writing if it does not consent to a competent authority or a central bank of issue participating in the college at their request. For reasons of efficiency and legal certainty, it is important that those reasons are given within a reasonable time limit.

In accordance with Article 19(3) of Regulation (EU) No 648/2012, the European Central Bank (‘ECB’) has two votes when it is a member of a CCP college both in the framework of its tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism and as the central bank of issue of one of the most relevant Union currencies of the financial instruments cleared. In order to reflect the appropriate representation of the ECB, it should be laid down that in such cases, the ECB should have two participants with voting rights.

It is necessary to ensure an efficient flow of documentation between college members and to give college members enough time to prepare for the college meetings. The CCP’s competent authority should therefore circulate the agenda of the college meeting and all information relevant for the preparation of that meeting well in advance.

In order to ensure a proper functioning of colleges and to ensure that a college meets on a regular basis, a meeting of a CCP college should be held at least annually. College members may also request that a meeting of the CCP college be held when they consider such meeting to be necessary.

A physical meeting of the college may not always be possible. The CCP college should therefore be able to vote by written procedure where considered appropriate by the CCP’s competent authority or at the request of a college member.

Article 18(1) of Regulation (EU) No 648/2012 as amended by Regulation (EU) 2019/2099 attributes new responsibilities to CCP colleges, including for outsourcing arrangements. The CCP’s competent authority should therefore provide college members with information about any changes in a CCP’s outsourcing arrangements for major activities linked to risk management.

In order to enable the college to perform its duties, the CCP’s competent authority should provide college members with information about changes in the CCP’s participation requirements, clearing membership models, account segregation models, changes in the CCP’s default management procedures and changes in the CCP’s payment and settlement arrangements, and with reports on the CCP’s test of its default procedures conducted in accordance with Article 49(2) of Regulation (EU) No 648/2012.

In order to protect confidential information and to ensure that college members are informed on an equal basis, confidential information should be exchanged by secure means.

In order to provide college members with sufficient time to prepare for the CCP college meeting and to enable them to raise any points of interest or concern regarding the competent authority’s review or evaluation as referred to in Article 21 of Regulation (EU) No 648/2012, the information referred to in paragraph 4 of that Article should be submitted to the college members early enough for them to review and discuss that information in advance.

Delegated Regulation (EU) No 876/2013 should therefore be amended accordingly.

This Regulation is based on draft regulatory technical standards submitted to the Commission by the European Securities and Markets Authority following consultation of the European System of Central Banks.

The amendments are limited in scope and concern only competent authorities without imposing any additional requirements on market participants. In addition, it is important that CCP colleges can adjust as soon as possible to the new requirements introduced by Regulation (EU) 2019/2099. Because of the limited scope and impact of the amendments and the urgency of their application, the European Securities and Markets Authority considered it highly disproportionate to conduct open public consultations on the draft regulatory technical standards on which this Regulation is based, and to analyse the potential related costs and benefits. The European Securities and Markets Authority has however 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 Council4,