General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
July 05, 2017

The International Committees (FSB, CPMI, IOSCO, and BCBS) published three guidance documents and two reports as part of their joint workplan on central counterparty (CCP) resilience, recovery, and resolvability. In April 2015, these four entities had agreed on a joint workplan to coordinate international policy issues related to CCPs. To fully realize the benefits of CCPs, it is vital that CCPs are subject to strong regulatory, oversight, and supervisory requirements.

The Committees published three guidance documents on CCP resilience, recovery, and resolution. These documents mark the completion of the key substantive priorities set out in the 2015 workplan. Regarding CCP resilience, CPMI and IOSCO are providing further guidance on the Principles and Key Considerations of the Principles for financial market infrastructures regarding financial risk management for CCPs, particularly on governance, credit, and liquidity stress testing, coverage, margin, and a CCP's contributions of its financial resources to losses. Regarding recovery, CPMI and IOSCO have updated their 2014 guidance on recovery for financial market infrastructures to provide clarifications in the areas of operationalization of recovery plans; replenishment of financial resources; non-default related losses; and transparency about recovery tools and how they would be applied. Regarding resolution, FSB has finalized the guidance, which complements the FSB Key Attributes of Effective Resolution Regimes, on implementing the Key Attributes in resolution arrangements for CCPs. The FSB guidance sets out powers for resolution authorities to maintain the continuity of critical CCP functions; details on the use of loss allocation tools; and steps authorities should take to establish crisis management groups for relevant CCPs and develop resolution plans.

 

The Committees also published the following joint reports:

 

Interdependencies study. BCBS, CPMI, FSB, and IOSCO have completed their first joint comprehensive data collection covering 26 CCPs from 15 jurisdictions that analyzes the interdependencies between CCPs and their clearing members and other financial service providers. The network relationships analyzed in this report are generally characterized by a core of highly connected CCPs and financial institutions and a periphery of less highly connected CCPs and financial institutions. The study will help guide further work on CCP resolution. By the end of 2018 an assessment will be made on the value of regular data collections from CCPs to support authorities' understanding of CCP interdependencies.

 

Implementation report. In this report, the Chairs of the FSB Standing Committee on Supervisory and Regulatory Cooperation, the FSB Resolution Steering Group, CPMI, IOSCO, and BCBS provide an update on the work undertaken to complete the key substantive priorities set out in the joint workplan. They also report on the establishment of crisis management groups for CCPs that are systemically important in more than one jurisdiction and set out new actions, including further work on CCP interdependencies and on the financial resources needs of CCPs in resolution and treatment of CCP equity in resolution. Based on further analysis and experience gained in resolution planning, FSB will determine, by the end of 2018, whether there is a need for additional guidance on financial resources for CCPs in resolution.

 

Related Links

Guidance on Resilience of CCPs

Guidance on Recovery of CCPs

Guidance on Resolution of CCPs

Interdependencies Study

Implementation Report

Joint CCP Workplan, 2015 (PDF)

Keywords: International, FSB, CPMI, IOSCO, BCBS, Banking, Securities, CCP, Recovery and Resolution Framework, Workplan, Resilience

Related Articles
News

FDIC Consults on Approach to Resolution Planning for IDIs

FDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.

April 22, 2019 WebPage Regulatory News
News

EP Resolution on Proposal for Sovereign Bond Backed Securities

The European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).

April 16, 2019 WebPage Regulatory News
News

HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%

HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.

April 16, 2019 WebPage Regulatory News
News

EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2

The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.

April 16, 2019 WebPage Regulatory News
News

PRA Finalizes Policy on Approach to Managing Climate Change Risks

PRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).

April 15, 2019 WebPage Regulatory News
News

PRA Seeks Input and Issues Specifications for Insurance Stress Tests

PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.

April 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for April 2019

EBA published answers to nine questions under the Single Rulebook question and answer (Q&A) updates for this week.

April 12, 2019 WebPage Regulatory News
News

FED Updates Form and Supplemental Instructions for FR Y-9C Reporting

FED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.

April 11, 2019 WebPage Regulatory News
News

EIOPA Statement on Application of Proportionality in SCR Supervision

EIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.

April 11, 2019 WebPage Regulatory News
News

ISDA Publishes Statement on FRTB Implementation in Emerging Markets

ISDA published a statement that outlines challenges in implementation of the new Basel III market risk standard for banks in emerging markets.

April 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2929