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Commission puts forward new rules for the recovery and resolution of central counterparties

The European Commission has today proposed new rules to ensure that both central counterparties (CCPs) and national authorities in the European Union have the means to act decisively if a CCP were to fail. The main objective of the proposed regulation is to ensure that CCPs' critical functions are preserved while maintaining financial stability and preventing the costs associated with the restructuring and resolution of failing CCPs from falling on taxpayers.

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Derivatives & EMIR

date:  28/11/2016

CCPs act as the counterparty to both sides of a transaction in a financial instrument. They clear a range of financial instruments including bonds, equities, derivatives and commodities (such as agricultural products, oil and natural gas). Certain types of derivatives have to be cleared through CCPs under G20 requirements and EU rules so that the importance of CCPs is set to increase further in the future.

Read more on CCPs and watch the video