ECON draft report on recovery and resolution of CCPs
On 27 September 2017, the ECON Committee published its draft report on the proposal for a Regulation on the Recovery and Resolution of CCPs.
On 27 September 2017, the ECON Committee published its draft report on the proposal for a Regulation on the Recovery and Resolution of CCPs. The Report was co-drafted by UK Conservative MEP Kay Swinburne and German Socialist MEP Jakob von Weizsäcker. The draft report makes a number of amendments to the Commission’s proposal including:
- Explicitly defining default and non-default events;
- Member States where no CCP is established do not need to designate a resolution authority;
- Recovery plans should be drawn up in the case of default and non-default events;
- Provisions in CCP operating rules should outline the procedures to be followed by them in order to achieve the goals of the recovery process;
- Clearing members do not have unlimited exposures toward the CCP in recovery;
- In default scenarios CCPs should use additional own resources before using other tools;
- Recovery plans should be made publicly available; and
- Resolution authorities should define the amount of the resolution cash call to be included in the operating rules.