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This statement represents the views of the European Association of CCP Clearing Houses (EACH), which welcomes the progress made by the European Parliament’s Committee on Economic and Monetary Affairs (ECON) to strengthen the European Commission legislative proposal on CCP Recovery and Resolution.
Building on international work and the initial Commission proposal, with a clear structure on a flexible and comprehensive toolkit for CCPs, the work lead by MEPs Swinburne and von Weizsäcker, together with shadow MEPs Hübner, Nagtegaal/van Nieuwenhuizen, Scott-Cato, Viegas and the rest of their colleagues in ECON, has resulted in additional safeguards for financial stability, preserved the crucial incentives structure on which CCPs are based and ensured alignment with international standards. EACH is particularly pleased that the European Parliament has added safeguards against the moral hazard which could potentially discourage commitment to a private sector solution in order to benefit from public bailout.
The ECON work creates a robust and effective CCP Recovery and Resolution regime that further insulates taxpayers from taking potential losses.
EACH hopes that the Council of the EU will work in the same direction and that the legislative framework for CCP Recovery and Resolution will be in place shortly.
For more information, please find attached the EACH response or visit our website www.eachccp.eu
