The Bank for International Settlements has published a speech, entitled “Resolution in Europe: The Unresolved Questions,” given by Benoît Cœuré, a member of the executive board of the European Central Bank (ECB), on April 23 in Frankfurt. The speech concerns a cooperative approach to central counterparty (CCP) recovery and resolution, and has three focuses:

  1. The need for increased international cooperation in this area. The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions are conducting work in this regard (a recent example of this is the CCP stress test framework, considered in the April 13 edition of Corporate & Financial Weekly Digest);
  2. Improving authorities’ conception of a possible CCP resolution; and
  3. The coordination of arrangements for CCP recovery and resolution across the European Union and, in particular, efforts to strengthen the European Union’s supervisory framework for third country CCPs (for example, the proposals to amend the European Markets Infrastructure Regulation in relation to CCPs, sometimes referred to as EMIR 2.2).

Mr Cœuré’s speech is available here.