10.19.2016

World Federation of Exchanges Responds to FSB’s Paper on CCP Resolution Planning

10.19.2016

WFE – London – The World Federation of Exchanges (“WFE”), which represents more than 200 market infrastructure providers including exchanges and CCPs, today published its response to the Financial Stability Board’s (FSB) discussion note on the Essential Aspects of CPP Resolution Planning.

A summary of the WFE response is as follows:
  • The WFE considers recovery is almost always preferable to resolution, but we welcome well-designed international efforts to enhance and strengthen how CCPs would be resolved in the event of a systemic crisis, such as the simultaneous default of several large global banks.
  • The WFE supports further initiatives which encourage better planning by resolution authorities, particularly when they encourage international cooperation between regulatory bodies.
  • Any resolution framework or guidelines need to retain sufficient flexibility, however, to ensure the continued smooth operation of the wider market in the event of a resolution situation.

Within that context, the WFE notes that:

  • It is not likely that one single resolution strategy will be effective for all potential scenarios.
  • Recovery must be given every opportunity to succeed.
  • There is no benefit to limiting the tools available to a CCP in managing its own recovery.
  • Existing obligations and incentive structures need to remain appropriately balanced, in order to support the CCP function in either recovery or resolution situations.
  • The ultimate cost to end-users needs to be considered.

Nandini Sukumar, CEO, WFE, said: “First and foremost, we consider a CCP-led recovery to be preferable for the broad market than resolution. However, we support a principles-based approach – rather than prescriptions – to CCP resolution planning, which would facilitate a more integrated financial system. This would enable regulators and FMIs to consider and respond appropriately to the unique nature of the local markets they operate in.”

Click here to read the WFE response in full.

– Ends –

About the World Federation of Exchanges (WFE):
Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups.The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data indicators. Its statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges.

Pension funds, sovereign wealth funds, endowments and other institutional asset owners are sitting on vast troves of data -- but extracting value from that data is more challenging than ever.

#AssetOwners #DataQuality

Technology costs in asset management have grown disproportionately, but McKinsey research finds the increased spending hasn’t consistently translated into higher productivity.
#AI #Fiance

We're in the FINAL WEEK for the European Women in Finance Awards nominations – don't miss your chance to spotlight the incredible women driving change in finance!
#WomenInFinance #FinanceAwards #FinanceCommunity #EuropeanFinance @WomeninFinanceM

ICYMI: @marketsmedia sat down with EDXM CEO Tony Acuña-Rohter to discuss the launch of EDXM International’s perpetual futures platform in Singapore and what it means for institutional crypto trading.
Read the full interview: https://bit.ly/45xRUWh

Load More

Related articles

  1. Trading Europe From ‘Across the Pond’

    EU adopts equivalence decisions for CCPs and trading venues in ten non-EU areas.

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] By continuing to use our services after Aug 25, 2025, you agree to these updates.

Close the CTA