Recovery And Resolution Planning For CCPs

The financial crisis clearly illustrated that the failure of an important financial institution can cause critical problems for the rest of the financial system and can negatively impact growth across the wider economy. Since the introduction of new obligations for derivatives markets under the European Market Infrastructure Regulation ("EMIR") in 2012, alongside equivalent regulations in the US and Asia, central counterparties ("CCPs") have continued to grow in systemic importance and play an essential role in the global financial system, accentuating the G20's commitment to ensure there is more transparency and stability for the financial system.

Regulation 2021/23 sets out a framework for the recovery and resolution of central counterparties, with a clear goal of complementing EMIR, to ensure that CCPs in the EU can continue to perform critical operations and services as expected in a financial crisis. This regulation covers specific situations of distress for