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The European Association of CCP Clearing Houses (EACH) has responded to the following three ESMA consultations on resolution:
- Draft Guidelines on the assessment of resolvability – EACH broadly agrees with ESMA’s approach and interpretation of the mandate and the aim of the Guidelines. However, EACH Members would like to put forward some concrete suggestions concerning Guidelines 2, 3, 4(3), 7 and 9, mainly aiming at e.g. supporting a more flexible approach regarding CCPs staffing rules (taking into account that some CCPs operate out of multiple locations with varying labor laws), suggesting deleting the requirement to assess whether a core business or critical operation is serviced by multiple legal entities and supporting a more outcomes-based and flexible approach concerning the requirements for management information systems.
- Draft Guidelines on the types and content of the provisions of Cooperation Arrangements – EACH agrees with ESMA’s approach to the Guidelines, the way ESMA has interpretated the mandate as well as the aim of the Guidelines. EACH Members would also like to stress that it is important for the NCA to remain the sole responsible for drawing up and maintaining the resolution plan.
- Draft Guidelines on the summary of resolution plans – EACH overall agrees with the provisions included in the consultation. In addition, EACH suggests taking into account the important of differentiating among two main types of non-default events, i.e. those non-default events that are the sole responsibility of the CCP and non-default events whose responsibility is to be shared among different stakeholders and that occurred despite the CCP complying with all the rules.
For more information, please see the EACH responses at the links below or visit the EACHwebsite at www.eachccp.eu
EACH Response - ESMA consultation on assessment for resolvability.pdf
EACH Response - ESMA consultation on Cooperation Arrangements.pdf
EACH Response - ESMA consultation on summary of resolution plans.pdf
