(iii) to assess the need for additional prefunded financial resources (including capital) and
liquidity arrangements in resolution and to develop a proposal, as needed.
In June 2015 ReSG completed a survey amongst its members
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on CCP resolution regimes and
resolution planning. The survey relied as reference on the Key Attributes and its FMI Annex,
which sets out how the Key Attributes should be implemented in relation to resolution regimes
for systemically important FMIs. Overall, the survey results indicated that resolution
frameworks for CCPs are not well developed. Systematic cross-border resolution planning
processes are not yet in place for any of the largest CCPs although efforts are underway to
establish such processes. The majority of respondents noted that their jurisdictions intend to
develop or are still in the process of developing resolution regimes or policies for CCPs.
There was broad agreement amongst respondents on the need for further work on CCP
resolution and resolution planning, and for a structured process of implementation
monitoring.
To conduct this work, ReSG agreed to establish by end 2015 a working group (Cross-border
Crisis Management Group for FMIs, the fmiCBCM) to provide a forum for authorities to
exchange views, share experiences and discuss challenges and obstacles that arise in relation
to the orderly resolution of CCPs, and to carry out further resolution-related work under the
joint CCP workplan. More specifically, this group will monitor progress in: (i) the
development of resolution strategies and operational resolution plans for CCPs and of
institution-specific cross-border cooperation agreements (COAGs) or other appropriate
agreements that underpin cooperation, coordination and information sharing for purposes
related to resolution planning between members of CMGs or equivalent arrangements; and
(ii) the establishment and composition of CMGs (or equivalent arrangements) for CCPs,
including the determination of the CCPs that would require such arrangements given their
systemic importance in more than one jurisdiction. The group will also liaise with the joint ad
hoc study group on interdependencies (see section 5 below) on potential spill-overs related to
resolution actions and assess how resolution strategies can be developed to mitigate such
spill-overs. It will analyse how the resolution powers specified in the Key Attributes and its
FMI Annex would be exercised in practice in relation to a CCP, and identify obstacles, if any,
to the resolvability of CCPs arising from (i) legal structures; (ii) the arrangement of clearing
activities or other services; (iii) relationships and interdependencies between the CCP and
participants; (iv) links with other FMIs; (v) CCP rules including default management and
recovery procedures; and (vi) financial resources including liquidity arrangements.
As set out in the joint work plan, the group will also, cooperating closely with CPMI-IOSCO
and the ad hoc study group, assess the need for additional prefunded financial resources
(including capital) and liquidity arrangements for CCPs in resolution. By end 2016, the group
will report on the need for and, as appropriate, develop proposals for further guidance to
support CCP resolvability and resolution planning and to enhance prefunded financial
resources and liquidity arrangements for CCPs in resolution.
4
The following jurisdictions responded to the survey: Australia, Canada, China, European Commission, France, Germany,
Hong Kong, India, Italy, Japan, Mexico, The Netherlands, Russia, Singapore, South Africa, South Korea, Spain, Sweden,
Switzerland, Turkey, UK, and the US.