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Article 4 - Resolution colleges

Article 4

1.   The resolution authority of the CCP shall establish, manage and chair a resolution college to carry out the tasks referred to in Articles 12, 15 and 16, and ensure cooperation and coordination with the authorities that are members of the resolution college and, where appropriate, cooperation with third-country competent authorities and resolution authorities.

Resolution colleges shall provide a framework for resolution authorities and other relevant authorities to perform the following tasks:

(a)

exchange information relevant for drawing up resolution plans, including for taking into consideration the systemic impact of the implementation of the resolution plan, for the application of preparatory and preventative measures and for resolution;

(b)

draw up resolution plans pursuant to Article 12;

(c)

assess the resolvability of CCPs pursuant to Article 15;

(d)

identify, address and remove impediments to the resolvability of CCPs pursuant to Article 16; and

(e)

coordinate public communication about resolution plans and strategies.

2.   The following shall be members of the resolution college:

(a)

the resolution authority of the CCP;

(b)

the competent authority of the CCP;

(c)

the competent authorities and the resolution authorities of the clearing members referred to in point (c) of Article 18(2) of Regulation (EU) No 648/2012, including, where relevant, the European Central Bank (ECB) in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/2013 (22) and the Single Resolution Board (SRB) in its role as a resolution authority of credit institutions within the single resolution mechanism conferred upon it in accordance with Regulation (EU) No 806/2014;

(d)

the competent authorities and the resolution authorities of clearing members, other than those referred to in point (c). Those competent authorities and resolution authorities shall inform the resolution authority of the CCP and justify their participation in the college based on their assessment of the impact that the CCP’s resolution could have on the financial stability of their respective Member State;

(e)

the competent authorities or the resolution authorities of clearing membersclients, provided that the college does not already have a member from their own Member State in accordance with points (c), (d), (f), (g) or (h). Those authorities shall inform the resolution authority of the CCP and justify their participation in the college based on their assessment of the impact that the CCP’s resolution could have on the financial stability of their respective Member State;

(f)

the competent authorities referred to in point (d) of Article 18(2) of Regulation (EU) No 648/2012;

(g)

the competent authorities and the resolution authorities of the CCPs referred to in point (e) of Article 18(2) of Regulation (EU) No 648/2012;

(h)

the competent authorities referred to in point (f) of Article 18(2) of Regulation (EU) No 648/2012;

(i)

the members of the European System of Central Banks (ESCB) referred to in point (g) of Article 18(2) of Regulation (EU) No 648/2012;

(j)

the central banks of issue referred to in point (h) of Article 18(2) of Regulation (EU) No 648/2012;

(k)

the central banks of issue of the Union currencies of the financial instruments cleared by the CCP, other than those referred to in point (j). Those central banks of issue shall inform the resolution authority of the CCP and justify their participation in the college based on their assessment of the impact that the CCP’s resolution could have on their respective currency of issue;

(l)

the competent authority of the parent undertaking, where applicable;

(m)

the competent ministry, where the resolution authority referred to in point (a) is not the competent ministry;

(n)

ESMA; and

(o)

the European Supervisory Authority (European Banking Authority) (EBA), established by Regulation (EU) No 1093/2010.

3.   ESMA, EBA and the authorities referred to in points (d), (e), (k) and (l) of paragraph 2 shall not have voting rights in resolution colleges.

Where the ECB is a member of the college pursuant to points (c) and (j) of paragraph 2, it shall have two votes in the college.

4.   The competent authorities and resolution authorities of clearing members established in third countries and the competent authorities and resolution authorities of third-country CCPs with which the CCP has established interoperability arrangements may be invited to participate in the resolution college as observers. Their attendance shall be conditional on those authorities being subject to confidentiality requirements equivalent, in the opinion of the resolution authority of the CCP as the chair of the resolution college, to those laid down in Article 73.

The participation of third-country authorities in the resolution college may be limited to the discussion of select cross-border enforcement issues, which may include the following:

(a)

effective and coordinated enforcement of resolution actions, in particular in accordance with Articles 53 and 77;

(b)

identification and removal of possible impediments to effective resolution action that may stem from divergent laws governing collateral, netting and set-off arrangements and different recovery and resolution powers or strategies;

(c)

identification and coordination of any need for new licensing, recognition or authorisation requirements, considering the need for resolution actions to be carried out in a timely fashion;

(d)

possible suspension of any clearing obligation for the relevant asset classes affected by the resolution of the CCP pursuant to Article 6a of Regulation (EU) No 648/2012 or to any equivalent provision under the national law of the third country concerned;

(e)

possible influence of different time-zones on the applicable close of business hours regarding the end of trading.

5.   The resolution authority of the CCP as the chair of the resolution college shall be responsible for the following tasks:

(a)

establishing written arrangements and procedures for the functioning of the resolution college, after consulting the other members of the resolution college;

(b)

coordinating all activities of the resolution college;

(c)

convening and chairing all meetings of the resolution college;

(d)

keeping all members of the resolution college fully informed in advance of the organisation of meetings, of the main issues to be discussed in those meetings and of the items to be considered for the purposes of those discussions;

(e)

deciding whether and which third-country authorities are invited to attend particular meetings of the resolution college in accordance with paragraph 4;

(f)

enabling, promoting and coordinating the timely exchange of all relevant information between members of the resolution college; and

(g)

keeping all members of the resolution college informed, in a timely manner, of the decisions and outcomes of those meetings.

6.   In order to facilitate the performance of the tasks assigned to the college, members of the college referred to in paragraph 2 shall be entitled to contribute to the setting of the agenda of the college meetings, in particular by adding points to the agenda of the meeting.

7.   In order to ensure the consistent and coherent functioning of resolution colleges across the Union, ESMA shall develop draft regulatory technical standards in order to specify the content of the written arrangements and procedures for the functioning of the resolution colleges referred to in paragraph 1.

For the purposes of preparing those regulatory standards, ESMA shall take into account the relevant provisions of the delegated acts adopted on the basis of Article 88(7) of Directive 2014/59/EU.

ESMA shall submit those draft regulatory technical standards to the Commission by 12 February 2022.

The Commission is empowered to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.


(22)  Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring special tasks on the European Central Bank concerning policies to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63).