Article 60, Amendments to Regulation (EU) No 648/2012, Digital Operational Resilience Act (DORA)

Overview

Regulation (EU) No 648/2012 is amended as follows:

(1) Article 26 is amended as follows:

(a) paragraph 3 is replaced by the following:

‘3. A CCP shall maintain and operate an organisational structure that ensures continuity and orderly functioning in the performance of its services and activities. It shall employ appropriate and proportionate systems, resources and procedures, including ICT systems managed in accordance with Regulation (EU) 2022/2554 of the European Parliament and of the Council (*2).

(*2) Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (OJ L 333, 27.12.2022, p. 1).’;"

(b) paragraph 6 is deleted;

(2) Article 34 is amended as follows:

(a) paragraph 1 is replaced by the following:

‘1. A CCP shall establish, implement and maintain an adequate business continuity policy and disaster recovery plan, which shall include ICT business continuity policy and ICT response and recovery plans put in place and implemented in accordance with Regulation (EU) 2022/2554, aiming to ensure the preservation of its functions, the timely recovery of operations and the fulfilment of the CCP’s obligations.’;

(b) in paragraph 3, the first subparagraph is replaced by the following:

‘3. In order to ensure consistent application of this Article, ESMA shall, after consulting the members of the ESCB, develop draft regulatory technical standards specifying the minimum content and requirements of the business continuity policy and of the disaster recovery plan, excluding ICT business continuity policy and disaster recovery plans.’;

(3) in Article 56(3), the first subparagraph is replaced by the following:

‘3. In order to ensure consistent application of this Article, ESMA shall develop draft regulatory technical standards specifying the details, other than for requirements related to ICT risk management, of the application for registration referred to in paragraph 1.’;

(4) in Article 79, paragraphs 1 and 2 are replaced by the following:

‘1. A trade repository shall identify sources of operational risk and minimise them also through the development of appropriate systems, controls and procedures, including ICT systems managed in accordance with Regulation (EU) 2022/2554.

2. A trade repository shall establish, implement and maintain an adequate business continuity policy and disaster recovery plan including ICT business continuity policy and ICT response and recovery plans established in accordance with Regulation (EU) 2022/2554, aiming to ensure the maintenance of its functions, the timely recovery of operations and the fulfilment of the trade repository’s obligations.’;

(5) in Article 80, paragraph 1 is deleted.

(6) in Annex I, Section II is amended as follows:

(a) points (a) and (b) are replaced by the following:

‘(a) a trade repository infringes Article 79(1) by not identifying sources of operational risk or by not minimising those risks through the development of appropriate systems, controls and procedures including ICT systems managed in accordance with Regulation (EU) 2022/2554;

(b) a trade repository infringes Article 79(2) by not establishing, implementing or maintaining an adequate business continuity policy and disaster recovery plan established in accordance with Regulation (EU) 2022/2554, aiming to ensure the maintenance of its functions, the timely recovery of operations and the fulfilment of the trade repository’s obligations;’;

(b) point (c) is deleted.

(7) Annex III is amended as follows:

(a) Section II is amended as follows:

(i) point (c) is replaced by the following:

‘(c) a Tier 2 CCP infringes Article 26(3) by not maintaining or operating an organisational structure that ensures continuity and orderly functioning in the performance of its services and activities or by not employing appropriate and proportionate systems, resources or procedures including ICT systems managed in accordance with Regulation (EU) 2022/2554;’;

(ii) point (f) is deleted.

(b) in Section III, point (a) is replaced by the following:

‘(a) a Tier 2 CCP infringes Article 34(1) by not establishing, implementing or maintaining an adequate business continuity policy and response and recovery plan set up in accordance with Regulation (EU) 2022/2554, aiming to ensure the preservation of its functions, the timely recovery of operations and the fulfilment of the CCP’s obligations, which at least allows for the recovery of all transactions at the time of disruption to allow the CCP to continue to operate with certainty and to complete settlement on the scheduled date;’

Summary Of Article 60

Article 60 of the Digital Operational Resilience Act (DORA) introduces amendments to Regulation (EU) No 648/2012, enhancing the operational resilience of central counterparties (CCPs) and trade repositories in line with the standards of Regulation (EU) 2022/2554.

The amendments require CCPs to maintain an organizational structure that ensures continuity and orderly functioning, including the use of appropriate ICT systems. These systems must be managed according to Regulation (EU) 2022/2554. Furthermore, CCPs must establish and implement business continuity and disaster recovery plans that include ICT-specific recovery procedures to ensure timely operational recovery.

For trade repositories, the amendments mandate identifying and minimizing operational risks through effective systems, controls, and ICT procedures. Trade repositories must also implement business continuity and disaster recovery plans in line with ICT resilience standards.

The changes also revise the enforcement structure by updating Annex I and Annex III, specifying infringements related to operational risk management and business continuity. These amendments ensure that CCPs and trade repositories are well-prepared to maintain their services and obligations in the event of disruptions, thus promoting stability and resilience within the financial sector. The article emphasizes strengthening operational continuity and ICT risk management, ensuring financial entities’ smooth functioning under all conditions.