ESRB published an opinion on the proposed central counterparty (CCP) recovery and resolution framework. With this opinion, ESRB aims to provide input to the ongoing legislative debate and the regulatory dialog on CCP recovery and resolution issues.
In November 2016, EC had published a legislative proposal for a CCP recovery and resolution regime for the EU. Among the EU member states, discussions are ongoing on this draft legislative text, with the latest Presidency compromise text (as of the date of this opinion) having been published in April 2017. ESRB refers to this latest document (as the Proposal) in its input. ESRB has identified a number of areas where the provisions of the Proposal should be amended or expanded to better address macro-prudential considerations and these are as follows:
Further harmonize recovery actions in secondary legislation
Strengthen, where necessary, the financial stability mandate of CCP supervisory authorities in the EU
Strengthen resolution planning by conducting an impact assessment and an analysis of existing financial resources
Include further resolution tools and clarify the use of the proposed tools
Enhance cross-border cooperation and cooperation with bank resolution authorities
Further clarify conditions for the suspension of clearing obligations and the use of public financial support
Keywords: Europe, EU, Banking, Securities, CCP, Recovery and Resolution Framework, ESRB
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