Regulatory Alerts2023-03-24
Added · Updated
Guidelines on CCP Recovery Plan Scenarios Article 9(12) CCPRRR
These Guidelines require Central Counterparties (CCPs) to include at least one actual scenario for each of seven specified risk types in their recovery plans, with limited derogation allowing the combination of two types under strict conditions. CCPs must ensure comprehensive coverage of relevant risks, including legal, credit, liquidity, operational, and systemic risks, while defining scenario magnitudes that exceed standard risk mitigation measures and deplete prefunded resources or capital. Competent authorities must incorporate these Guidelines into their national frameworks and notify ESMA of their compliance status within two months of publication, while CCPs must report their compliance to their respective authorities. The Guidelines apply from two months after publication and mandate that CCPs review and update their scenarios whenever they review their recovery plans.
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