FSB: Guidance on central counterparty resolution and resolution planning

FSB has published this consultation, which covers a number of issues which authorities should consider when developing frameworks for resolving failing CCPs, including: policy objectives for CCP resolution to maintain financial stability; the powers that resolution authorities should have to maintain the continuity of critical CCP functions, return the CCP to a matched book and address default and non-default losses, including potential indicators for considering when a CCP should enter resolution use of loss allocation tools in resolution and provisions necessary to protect creditor rights so the triggering of resolution by authorities does not leave creditors worse off than if the authorities had not stepped in; and steps authorities should take to establish crisis management groups for CCPs that are systemically important in more than one jurisdiction, develop resolution plans and conduct resolvability assessments. Responses are required by 13 March 2017. Alongside the consultation, FSB has published an overview of responses to an August 2016 discussion note on essential aspects of CCP resolution planning.