The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today its first CCP resolution briefing, aiming to support National Resolution Authorities (NRAs) on the operationalisation of the cash call mechanism.
The briefing, developed by ESMA's CCP Resolution Committee, provides a methodology to be considered by NRAs when including the resolution cash call in CCP resolution plans.
NRAs should define the relevant data to be collected by the CCP, with a view to calibrate the resources available through a cash call. In doing so, NRAs should take into account the impact on relevant stakeholders, such as clearing members, financial markets and financial market infrastructures. Finally, NRAs should ensure that appropriate processes are in place for executing the cash calls, and that their effectiveness is tested through dry-runs.
This briefing supports NRAs in enhancing their preparedness for implementing a resolution cash call. By promoting consistent practices across jurisdictions, it fosters effective financial markets and financial stability—a strategic priority for ESMA.
