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Article 4 – Assessment of safeguards ⬅️ | ➡️ Article 6 – Penalties in relation to safeguards and discretionary measures
Article 5 - Discretionary measures
1.
The Governing Council may decide to adopt, revise or remove discretionary measures with respect to the CCP credit facility on the grounds of prudence. These measures shall be applied by the respective euro area NCB and shall include:
(a)
rejecting, limiting the use of or applying supplementary valuation haircuts to the assets mobilised as collateral for the purposes of the CCP credit facility;
(b)
limiting, suspending or terminating access to the CCP credit facility as further specified in paragraphs 3 to 7.
2.
The Governing Council shall ensure that the measures referred to in paragraph 1 are taken in a proportionate and non-discriminatory manner and are duly justified.
3.
Unless decided otherwise by the Governing Council, a CCP which does not comply with the requirements set out in Articles 2 and 3 shall have its access to the CCP credit facility automatically limited on the grounds of prudence. If compliance has not been restored through adequate and timely measures at the latest within 16 weeks from the date of the determination of non-compliance with the requirements set out in Articles 2 and 3 on the basis of the assessments provided for in Article 4, the CCP’s access to the CCP credit facility shall be suspended on the grounds of prudence. Such measures shall be applied by the respective euro area NCB.
4.
Without prejudice to the measures referred to under paragraph 3, access to the CCP credit facility may be limited or suspended on the grounds of prudence for an eligible CCP for which information necessary for the purpose of the assessments provided for under Article 4 is incomplete or is not made available to the Eurosystem central banks. Access shall be restored once the relevant information becomes available to the Eurosystem central banks and the CCP has been assessed as meeting the requirements of Articles 2 and 3.
5.
Upon the limitation of access to the CCP credit facility provided for in this Article, the relevant eligible CCP may maintain a restricted level of access to the CCP credit facility. Unless decided otherwise by the Governing Council, that restricted level of access shall correspond to the level of the usage of the CCP credit facility at the time when the Eurosystem central banks become aware of:
(a)
in the case set out in paragraph 3, the relevant eligible CCP’s non-compliance with the requirements set out in Articles 2 and 3;
(b)
in the case set out in paragraph 4, the incompleteness or unavailability of information necessary for the purpose of the assessments provided for under Article 4.
6.
In the event of a suspension of access to the CCP credit facility provided for in this Article, any outstanding credit shall immediately become repayable in full.
7.
In the event of a termination of access to the CCP credit facility provided for in this Article, any outstanding credit shall immediately become repayable in full and the CCP subject to such termination shall immediately cease to be eligible for access to the CCP credit facility.