Commission Implementing Decision (EU) 2023/1602 of 31 July 2023 on the primary dealer network and the definition of eligibility criteria for lead and co-lead mandates for syndicated transactions for the purposes of the borrowing activities by the Commission on behalf of the Union and of the European Atomic Energy Community

Article 8, first paragraph, point (c), Article 9, first paragraph, point (b) and Article 13(6) and (7) shall apply to syndicated transactions starting as of 1 July 2024.

Article 20

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Done at Brussels, 31 July 2023.

For the Commission

The President

Ursula von der Leyen

Annex

ANNEX I

1. Fulfilment of the obligation to purchase a minimum weighted average of 0,05 % of volumes auctioned by the Union and/or the Euratom on a semi-annual basis

(a) Auctions shall be carried out through an auction system operated by an auction provider selected by the Commission (auction provider).

(b) Participation in the auctions and purchase of auctioned debt securities shall take place in accordance with auction rules arranged by the auction provider and endorsed by the Commission. The primary dealers shall subscribe to the auction rules and comply with them.

(c) It should be understood by all primary dealers, that they act and participate in the auctions at their own risk and that the Commission shall not be responsible in any manner for the decisions of any participant in the auctions and in particular for any losses, direct or indirect, arising in relation to any transaction entered into by such participants.

(d) The primary dealers shall take all measures to ensure that they are able to participate in the auction, in particular conclude the contracts with the auction provider, complete any step and formality necessary to participate in the auctions, and have in place the technical infrastructure to participate.

(e) The Commission shall not bear any costs or responsibility towards the primary dealer in relation to the contracts between the auction provider and the primary dealer or in relation to the technical infrastructure for the auction.

(f) Primary dealers may only be dispensed from the fulfilment of their obligation under Article 5(a) in cases of force majeure, which shall in particular not comprise cases of malfunctioning or technical issues relating to the infrastructure.

(g) The calculations of the volume purchased by primary dealers over the relevant 6-month period shall be weighted according to the following table:

Residual maturity< 3,5 m3,5 m-1Y1Y-4Y4Y-8Y8Y-12Y12Y-17Y17Y-23Y> 23YCoeff.0,512,55,510152025

(h) This calculation shall be applied for 6-month periods, running from April to September and from October to March. In 2023, the following period shall apply: from January to June and from July to March of the following period. Article 5(a) of this Decision shall temporarily not apply to primary dealers that have been admitted to the primary dealer network after the beginning of the 6-month period defined in point (h). It shall start applying at the end of the successive 6-month period following the date on which the respective primary dealer is admitted to the primary dealer network.

1. Reporting obligations

(a) The primary dealers shall, on request, submit information on the risk limit that this primary dealer has set, for the purpose of its own position management, for the trading activity of the debt securities of the Union and the Euratom as well as on the extent to which the risk limit is used. The information to be submitted shall be specified in the request.

(b) The primary dealers shall immediately notify the Commission in case it is subject to rating upgrades or downgrades by one of the external rating agencies recognised by ESMA in accordance with Article 18(3) of Regulation (EC) No 1060/2009 of the European Parliament and of the Council

Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (OJ L 302, 17.11.2009, p. 1).

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(c) The primary dealers shall promptly notify the Commission of non-compliance with any eligibility criterion laid down in Article 4.

(d) The primary dealers shall submit to the Commission any change in contact details communicated through the application form by using the template attached to the application form within two weeks of the date when the change took effect.

(e) The primary dealers shall submit to the Commission, on its request, any information relevant for the execution of its activities of primary dealer, in particular on its primary or secondary market activities related to the debt securities of the Union and the Euratom.

Annex

ANNEX II

Correlation table

Correlation tableDecision (EU, Euratom) 2021/625 of 14 April 2021This DecisionArticle 1Article 1Article 2Article 2Article 3Article 3Article 4Article 4Article 5Article 5Article 6Article 6Article 7Article 7Article 8Article 8Article 9Article 10Article 10Article 12Article 11Article 13Article 12Article 14Article 13Article 15Article 14Article 16Article 15Article 17Article 16Articles 18 and 19Article 17Article 20