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    The draft guidance is based on the concepts included in a discussion paper on financial resources to support CCP resolution and the treatment of CCP equity in resolution, which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 The draft guidance takes into account the comments received in that earlier public consultation and feedback from the resolution authorities of CCPs.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

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425