Regulatory Alerts2023-10-26
Added · Updated
Commission Delegated Regulation (EU) 2024/450 on business reorganisation plans for central counterparties
The European Commission adopted Delegated Regulation (EU) 2024/450 to supplement Regulation (EU) 2021/23 by establishing regulatory technical standards for business reorganisation plans of central counterparties (CCPs). The regulation mandates that CCPs under resolution include specific minimum elements in their plans, such as detailed analyses of failure causes, descriptions of viability-restoring measures, and assessments of operational, financial, and risk management changes. It further specifies criteria for the approval of these plans by resolution authorities, requiring evidence of long-term viability, stakeholder impact analysis, and scenario testing. These obligations apply to CCPs subject to resolution proceedings and define the structural and content requirements for their recovery strategies.