Featured Product

    FSB Proposes Guidance on Financial Resources to Support CCP Resolution

    May 04, 2020

    FSB is consulting on guidance on financial resources to support central counterparty (CCP) resolution and on the treatment of CCP equity in resolution. FSB has set out guidance on assessing the adequacy of financial resources to absorb losses and to cover other costs in resolution. The comment period on the guidance, which is intended to assist CCP resolution authorities, ends on July 31, 2020.

    The draft guidance is based on the concepts included in a discussion paper on financial resources to support CCP resolution and the treatment of CCP equity in resolution, which the FSB published for public consultation in November 2018. The draft guidance takes into account the comments received in that earlier public consultation and feedback from the resolution authorities of CCPs. The guidance proposes five steps to guide the authorities in assessing the adequacy of the financial resources of a CCP and the potential financial stability implications of their use. The authorities should:

    • Identify hypothetical default and non-default loss scenarios (and a combination of them) that may lead to a resolution of a CCP
    • Conduct a qualitative and quantitative evaluation of existing resources and tools available in the resolution of the CCP
    • Assess potential resolution costs
    • Compare existing resources and tools to resolution costs and identify any gaps
    • Evaluate the availability, costs and benefits of potential means of addressing any identified gaps

    The guidance addresses the treatment of CCP equity in resolution. It provides a framework for resolution authorities to evaluate the exposure of CCP equity to losses in recovery, liquidation, and resolution and how (where it is possible) the treatment of CCP equity in resolution could be adjusted.

     

    Related Links

    Comment Due Date: July 31, 2020

    Keywords: International, Banking, Securities, CCP, CCP Resolution, Resolution Planning, OTC Derivatives, FSB

    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571