Central Counterparty Financial Resources for Recovery and Resolution

Joint report by the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements, and the International Organization of Securities Commissions (IOSCO).

In November 2020, the Chairs of the FSB, CPMI, IOSCO and of the FSB's Resolution Steering Group publicly committed to collaborate on and conduct further work on CCP financial resources in recovery and resolution. This report presents the results of the evidence gathering and analysis on existing financial resources and tools for CCP recovery and resolution carried out in 2021.

A first part of the analysis assessed the current use, composition and amount of financial resources and tools available to cover CCP losses in a sample of CCPs that are considered systemically important in more than one jurisdiction. A second part of the analysis assessed the potential financial stability implications from the use of the financial resources and tools covered by the existing CPMI-IOSCO guidance on recovery of financial market infrastructures and FSB guidance on CCP resolution.

Although the analysis was subject to a number of limitations and assumptions that suggest the results should be interpreted cautiously, it confirmed the need for further international work on CCP financial resources.