Recovery and Resolution for CCPs is the last missing piece in the puzzle of 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. Its aim is to define measures to be taken in extreme but plausible events of financial distress and ensure the continuity of clearing of key critical contracts, while excluding the use of public resources and preserving financial stability.

Following adoption by the co-legislators, the final legislative text was published in the EU Official Journal in January 2021 and entered into force the following month. ESMA conducted important Level 2 work to specify the file’s application, especially on the No-Creditor-Worse-Off (NCWO) counterfactual and the 2nd Skin in the Game (SITG) technical standards. The new CCP Recovery and Resolution rules have been fully applicable since August 2022 with the EU becoming one of the first jurisdictions to have a fully-fledged recovery and resolution framework, setting a benchmark at a global level.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.