Summary of document history
Effective resolution regimes for systemically important central counterparties (CCPs) and the availability of adequate resources and tools for CCP resolution remain critical for financial stability and ensuring confidence in the financial system.
Progress in implementing the G20 regulatory reforms agreed after the 2008-09 financial crisis, including the central clearing mandate, has increased the systemic importance of CCPs. While material advances have been achieved to enhance the resilience and recovery of CCPs, it is also necessary to ensure that adequate liquidity, loss-absorbing, and recapitalisation resources and tools are available in resolution to maintain the continuity of critical functions and mitigate adverse effects on financial stability, should resolution become necessary.
Analysis, conducted by the FSB in 2023, demonstrated that, in general, resources and tools carry different strengths and weaknesses and may be more or less appropriate in specific resolution scenarios; no resource or tool, by itself, would be able to satisfy all aspects of the resolution resource parameters without some negative effect on financial stability or other drawbacks; resources and tools are likely to vary in their effect on financial stability; and access by the resolution authority to a combination of complementary resources and tools may be advantageous in meeting the objective of achieving a successful resolution.
The FSB has identified a toolbox approach as a flexible and effective means for resolution authorities to support CCP resolution. This report, which incorporates feedback from a public consultation, summarises the final analysis and presents the “toolbox approach” for resolution resources and tools alongside means for implementation and monitoring.
The FSB will monitor implementation for CCPs that are systemically important in more than one jurisdiction and will publish its findings in its annual Resolution Report.