The Financial Stability Board ("FSB") requested comments on draft guidance for effective resolution of central counterparties ("CCPs"). The proposed guidance is based on public responses to an August 2016 FSB discussion note on the "essential aspects of CCP resolution planning." The FSB stated that the guidance will be finalized in June 2017 before the G20 Leaders' Summit takes place in July 2017.
The consultative document requested comments on the following aspects of the draft guidance:
"the overall objectives of CCP resolution and resolution planning (Section 1)";
"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 (Section 2)";
"the potential indicators of circumstances that could lead to a determination to trigger resolution (Section 3)";
"the treatment of equity of existing CCP owners in resolution (Section 4)"; and
"the application of the 'no creditor worse off' safeguard and determination of the insolvency counterfactual (Section 5)";
"the assessment of the adequacy of financial resources in resolution, including elements that the FSB should consider in future work on the quantum of resources for purposes of resolution (Section 6)";
"the aspects of resolution planning and resolvability assessments (Sections 7 and 8)"; and
"cross-border cooperation and the cross-border enforcement of resolution actions (Sections 9 and 10)."
Comments on the draft guidance must be submitted by March 13, 2017.