Implementation of ESMA guidelines on scenarios and indicators for CCP recovery plans under Article 9 of Regulation (EU) No 2021/23

ADVICE
Implementation of the European Securities and Markets Authority (ESMA) guidelines on scenarios and indicators for the recovery plans of central counterparties (CCPs) under Article 9(5) and (12) of Regulation (EU) No 2021/23 (CCP RRR) (ESMA91-372-1702 and ESMA91-372-1701)

The Prudential Control and Resolution Authority (ACPR) has declared itself compliant with the European Securities and Markets Authority (ESMA) guidelines ESMA91-372-1702 and ESMA91-372-1701 on the scenarios for central counterparty recovery plans and on the indicators for these plans.

In accordance with the CCP RRR, each CCP must now produce an annual recovery plan detailing the measures to be taken in the event of losses resulting from defaults, non-default events, or a combination of both, in order to restore its financial and operational health. The ESMA guidelines ESMA91-372-1702 and ESMA91-372-1701 provide clarification on the types of scenarios that CCPs must develop within the framework of these plans, as well as their characteristics and frequency of updates. They also provide a minimum list of qualitative and quantitative indicators to be included therein and the procedures for taking these indicators into account by CCPs.

The guidelines are applicable to CCPs authorized in France, which must do everything in their power to comply with them, in accordance with the provisions of Article 16 of Regulation (EU) No 1095/2010 establishing ESMA.