Central counterparty recovery and resolution

20-03-2019

The important role played by central counterparties in financial markets, and their systemic relevance, has grown following the financial crisis. This, however, has drawn regulators’ attention to the absence of harmonised rules for situations where such counterparties themselves might be sources of systemic risk, due to operational difficulties or outright failure. To address this, the Commission proposed a regulation on which Parliament is due to vote during the March II plenary session, in order to conclude its first reading before the end of the term.

The important role played by central counterparties in financial markets, and their systemic relevance, has grown following the financial crisis. This, however, has drawn regulators’ attention to the absence of harmonised rules for situations where such counterparties themselves might be sources of systemic risk, due to operational difficulties or outright failure. To address this, the Commission proposed a regulation on which Parliament is due to vote during the March II plenary session, in order to conclude its first reading before the end of the term.