Featured Product

    International Committees Complete the 2015 Workplan on CCP Resilience

    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

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    HKMA Revises Implementation Schedule for Initial Margin Rules

    HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

    August 16, 2019 WebPage Regulatory News
    News

    HKMA Revises Guideline on Application of Banking Disclosure Rules

    HKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).

    August 16, 2019 WebPage Regulatory News
    News

    ECB Decision on Recognizing Reporting Member States Under AnaCredit

    ECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).

    August 16, 2019 WebPage Regulatory News
    News

    FASB Proposes to Extend CECL Standard Deadline for Certain Entities

    FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    IASB Adds Phase Two of IBOR Reform to Its Work Plan

    IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

    August 15, 2019 WebPage Regulatory News
    News

    FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

    FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

    August 15, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

    FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    OCC Updates Bank Accounting Advisory Series in August 2019

    OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.

    August 15, 2019 WebPage Regulatory News
    News

    APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

    APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

    August 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3656