Having regard to the critical role of CCP in the financial market, in particular in order to preserve financial stability and minimise the costs of CCP bankruptcy for taxpayers, the CCPRRR was adopted.
CCPRRR lays down rules and procedures relating to the recovery and resolution of CCPs authorised in accordance with EMIR and rules relating to arrangements with third countries in the field of recovery and resolution of CCPs.
Resolution authority shall have regard to all the following resolution objectives:
- to ensure the continuity of the CCP’s critical functions, in particular the timely settlement of the CCP’s obligations to its clearing members and continuous access of clearing members to securities or cash accounts provided by the CCP and collateral in the form of financial assets held by the CCP;
- to ensure the continuity of the links with other FMIs which, if disrupted, would have a material negative impact on financial stability in the Union or in one or more of its Member States as well as the timely completion of payment, clearing, settlement and record-keeping functions;
- to avoid a significant adverse effect on the financial system in the Union or in one or more of its Member States, in particular by preventing or mitigating contagion of financial distress to the CCP’s clearing members, their clients or to the wider financial system, including other FMIs, and by maintaining market discipline and public confidence;
- to protect public funds by minimising reliance on extraordinary public financial support and the potential risk of losses for taxpayers.
