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Date: 13-Jun-2024 Category: Not Applicable State: Union Government Country: Europe

Decision of the EEA joint Committee No 323/2023 of 8 December 2023 amending Annex IX (Financial services) to the EEA Agreement [2024/1426]

Issued by EEA Joint Committee · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The Decision of the EEA Joint Committee No 323/2023 amends Annex IX (Financial services) to the EEA Agreement to incorporate Commission Delegated Regulation (EU) 2023/1626. This regulation concerns the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement.

Key Changes

  • Annex IX to the EEA Agreement is amended to include Commission Delegated Regulation (EU) 2023/1626 of 19 April 2023, which relates to regulatory technical standards regarding the penalty mechanism for settlement fails concerning cleared transactions submitted by CCPs for settlement.
  • The Decision entered into force on 9 December 2023, contingent upon completion of notifications under Article 103(1) of the EEA Agreement.
  • The authentic text of Delegated Regulation (EU) 2023/1626 in Icelandic and Norwegian languages will be published in the EEA Supplement to the Official Journal of the European Union.

Impact Analysis

Central Counterparties (CCPs)

  • Action Item: CCPs should conduct a thorough assessment of their current settlement fail management processes and implement necessary changes to align with the new regulatory technical standards.

Financial Institutions

  • Action Item: Financial institutions should communicate with their CCPs to understand the implications of the new regulation on their clearing activities and adjust their internal processes accordingly.

EEA Authorities

  • Action Item: EEA authorities should develop guidelines and conduct inspections to ensure CCPs are adhering to the new regulatory technical standards for settlement fail penalties.

Key Entities Referenced

EEA Joint Committee: The body responsible for adopting decisions amending the EEA Agreement. Commission Delegated Regulation (EU) 2023/1626: Regulation amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement. Commission Delegated Regulation (EU) 2018/1229: Regulation that contains the regulatory technical standards which are being amended by Regulation (EU) 2023/1626. EEA Agreement: The Agreement on the European Economic Area, which is being amended by the Decision. CCPs: Central Counterparties, entities that interpose themselves between counterparties to financial transactions, becoming the buyer to every seller and the seller to every buyer.
Official Source Record View Original Source →
See Full Document Text
Official Journal EN of the European Union L series 2024/1426 13.6.2024 DECISION OF THE EEA JOINT COMMITTEE No 323/2023 of 8 December 2023 amending Annex IX (Financial services) to the EEA Agreement [2024/1426] THE EEA JOINT COMMITTEE, Having regard to the Agreement on the European Economic Area (“the EEA Agreement”), and in particular Article 98 thereof, Whereas: (1) Commission Delegated Regulation (EU) 2023/1626 of 19 April 2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement(1)is to be incorporated into the EEA Agreement. (2) Annex IX to the EEA Agreement should therefore be amended accordingly, HAS ADOPTED THIS DECISION: Article 1 The following indent is added in point 31bfh (Commission Delegated Regulation (EU) 2018/1229) of Annex IX to the EEA Agreement: ‘— 32023 R 1626: Commission Delegated Regulation (EU) 2023/1626 of 19 April 2023(OJ L 201, 11.8.2023, p. 1).’ Article 2 The text of Delegated Regulation (EU) 2023/1626 in the Icelandic and Norwegian languages, to be published in the EEA Supplement to the Official Journal of the European Union, shall be authentic. Article 3 This Decision shall enter into force on 9 December 2023, provided that all the notifications under Article 103(1) of the EEA Agreement have been made(*). Article 4 This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union. Done at Brussels, 8 December 2023. For the EEA Joint Committee The President Pascal SCHAFHAUSER (1) OJ L 201, 11.8.2023, p. 1. (*) No constitutional requirements indicated. ELI: http://data.europa.eu/eli/dec/2024/1426/oj 1/1

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