Chairs' Report on the Implementation of the Joint Workplan for Strengthening the Resilience, Recovery and Resolvability of Central Counterparties

CPMI Papers  |  No 165  | 
05 July 2017

This report describes how the 2015 workplan to strengthen the resilience, recovery and resolvability of central counterparties (CCPs) has been implemented. It was produced by the Chairs of the FSB Standing Committee on Supervisory and Regulatory Cooperation (Norman Chan), the FSB Resolution Steering Group (Elke König), the Committee on Payments and Market Infrastructures (Benoît Coeuré), the International Organization of Securities Commissions  (Ashley Alder), and the Basel Committee on Banking Supervision (Stefan Ingves).

The report highlights the various guidance and reports published under the workplan, the establishment of crisis management groups (CMGs) for CCPs that are systemically important in more than one jurisdiction ('SI>1') and sets out actions in the next phase, which include:

  • The continued monitoring of implementation of the principles in the Principles for Financial Market Infrastructures regarding resilience and recovery of CCPs, and finalisation of the framework on supervisory stress testing for CCPs;

  • the implementation of the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions consistent with the expectations regarding CCP resolution and resolution planning expanded upon in the FSB guidance, supported by (i) the establishment of CMGs for CCPs that are SI>1, including the home jurisdiction, and adoption of cooperation agreements; and (ii) further work on financial resources to support resolution and on the treatment of CCP equity in resolution;

  • additional analysis of central clearing interdependencies to assess whether the key findings are stable over time; and

  • further work to assess incentives to clear centrally arising from the interaction of post-crisis reforms.