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Recovery and Resolution Regulation for CCPs

Recovery and Resolution Regulation for Central Counterparties (CCPs)

Recovery and Resolution for CCPs is the next legislative step in implementing the G20 objectives. It will complement the high standards implemented through EMIR and confirm the CCPs' role as a neutral risk manager for financial markets.

Objective

The objective of Recovery and Resolution for CCPs is to define measures to be taken in extreme but plausible events of financial distress. The key objective is to exclude the use of public resources and increase the stability of financial markets.

Time line

The EU Commission has published the first legislative proposal in November 2016.

Recovery and Resolution: the highlighted parts of the value chain are affected

Erik Müller: financial stability without taxpayer bail-outs

In an op-ed article in the Börsen-Zeitung, Erik Müller, CEO of Eurex Clearing AG, explains how recovery and resolution regulation for central counterparties can help when done right.

FSB: draft guidance for CCP resolution and resolution planning

Central counterparties (CCPs) are becoming increasingly important, particularly following post-crisis reforms to mandate central clearing of certain standardised over-the-counter derivatives. It is thus vital that CCPs do not themselves become a new source of risk.

Video: new EU rules for safer central counterparties (CCPs)

The European Commission has published this interesting explanatory video on the role of CCPs as well as on recovery and resolution legislation.

CPMI-IOSCO on recovery of FMIs

The purpose of this report is to provide guidance for financial market infrastructures (FMIs) and authorities on the development of recovery plans.

Eurex Clearing: response to the CPMI-IOSCO Consultative Report

Eurex

Eurex Clearing responds to the “CPMI-IOSCO Consultative Report on the Resilience and Recovery of Central Counterparties (CCPs): Further Guidance on the PFMI” published by the Committee on Payments and Market Infrastructure (CPMI) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) in August 2016.

Effective resolution regimes and policies

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The Key Attributes of Effective Resolution Regimes for Financial Institutions (the ‘Key Attributes’ KA) set out the core elements that the Financial Stability Board (FSB) considers to be necessary for an effective resolution regime.

Essential aspects of CCP resolution planning

The Financial Stability Board (FSB) is seeking comments on essential aspects of CCP resolution planning. Based on the feedback received it will develop proposals for more granular guidance by early 2017.

Eurex Clearing: response to the FSB discussion

Eurex

Eurex Clearing highly appreciates the efforts of the Financial Stability Board (FSB) to establish global standards for resolution through its Key Attributes, and the particular guidance regarding financial market infrastructures (FMIs). Eurex Clearing actively contributes to market safety and integrity with state-of-the-art market infrastructure both in trading and clearing.

European Commission releases proposal

Europe

The European Commission released its proposal for a regulation on a framework for the recovery and resolution of central counterparties. The proposal complements risk reduction measures and EMIR. It shall close the gap in the financial regulatory architecture, as CCPs lie at the heart of all financial systems.