Updated 07/09/2024
In force

Initial Legal Act
Amendments
There is currently no Level 2 legal act based on or specifying Article 48.
Search within this legal act

Article 48 - General powers

Article 48

General powers

1.   The resolution authority shall have all the powers necessary to apply the resolution tools effectively, including all the following powers:

(a)

to require any person to provide the resolution authority with any information it requires to decide upon and prepare a resolution action, including updates and additional information to that provided in the resolution plan or required through on-site inspections;

(b)

to take control of a CCP under resolution and exercise all the rights and powers conferred upon holders of instruments of ownership and the CCP’s board including the rights and powers under the operating rules of the CCP;

(c)

to transfer instruments of ownership issued by a CCP under resolution;

(d)

to transfer to another entity, with its consent, the CCP’s rights, assets, obligations or liabilities;

(e)

to reduce, including to reduce to zero, the principal amount of or outstanding amount due in respect of debt instruments or other unsecured liabilities of a CCP under resolution;

(f)

to convert debt instruments or other unsecured liabilities of a CCP under resolution into instruments of ownership of that CCP or of a bridge CCP to which assets, rights, obligations or liabilities of the CCP under resolution have been transferred;

(g)

to cancel debt instruments issued by a CCP under resolution;

(h)

to reduce, including to reduce to zero, the nominal amount of instruments of ownership of a CCP under resolution and to cancel such instruments of ownership;

(i)

to require a CCP under resolution to issue new instruments of ownership, including preference shares and contingent convertible instruments;

(j)

with regards to debt instruments and other liabilities of the CCP, to amend or alter their maturity, amend the amount of interest payable, or amend the date on which interest becomes payable, including by suspending payment for a temporary period;

(k)

to close out and terminate financial contracts;

(l)

to remove or replace the board and senior management of a CCP under resolution;

(m)

to require the competent authority to assess the buyer of a qualifying holding in a timely manner by way of derogation from the time-limits laid down in Article 31 of Regulation (EU) No 648/2012;

(n)

to reduce, including to reduce to zero, the amount of variation margin due to a clearing member of a CCP under resolution;

(o)

to transfer open positions and any related assets, including relevant title transfer and security financial collateral arrangements, set-off arrangements, and netting arrangements, from the account of a defaulting clearing member to a non-defaulting clearing member in a manner consistent with Article 48 of Regulation (EU) No 648/2012;

(p)

to enforce any existing and outstanding contractual obligations of the clearing members of the CCP under resolution or, where necessary to achieve the resolution objectives, refrain from enforcing such contractual obligations or otherwise deviate from the CCP’s operating rules;

(q)

to enforce any existing and outstanding obligations of the parent undertaking of the CCP under resolution including to provide the CCP with financial support by way of guarantees or credit lines; and

(r)

to require clearing members to provide further contributions in cash subject to the limit referred to in Article 31.

Resolution authorities may exercise the powers referred to in the first subparagraph individually or in any combination.

2.   Unless otherwise provided for in this Regulation and the Union State aid framework, the resolution authority shall not be subject to any of the following requirements where it exercises the powers referred to in paragraph 1:

(a)

requirement to obtain approval or consent from any public or private person;

(b)

requirements relating to the transfer of financial instruments, rights, obligations, assets or liabilities of a CCP under resolution or a bridge CCP;

(c)

requirement to notify any public or private person;

(d)

requirement to publish any notice or prospectus;

(e)

requirement to file or register any document with any other authority.