CCP Recovery and Resolution

The Commission adopted in 2016 a legislative proposal on CCP recovery and resolution, in order to address the challenges posed by the growing importance of CCPs, and the potential risks for financial stability if a CCP were to fail.

On 23 June 2020, the Presidency of the Council and the European Parliament reached political agreement on a common set of rules (text as endorsed by EU ambassadors). The main objectives of the reform are:

  • to reduce the probability of CCP failure by introducing effective incentives for proper risk management;
  • in case a financial difficulty would effectively arise, to preserve CCPs’ critical functions, to maintain financial stability, and to prevent taxpayers from bearing the costs associated with their restructuring or resolution.
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