Updated 18/09/2024
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CCPRRR ToolDelegated Regulation 2023/1193
Article 11

Article 11 - Resolution strategies and scenarios

Article 11

Resolution strategies and scenarios

When preparing a detailed description of the resolution strategies and scenarios in accordance with Article 12(7), point (j), of Regulation (EU) 2021/23, the resolution authority shall ensure that at least the following elements are included in the resolution plan:

(a)

at least nine designed resolution plan scenarios based on the matrix for building the resolution plan scenarios as set out in the Annex, or a list of resolution plan scenarios covering all the ‘Types of scenarios’ set out in the Annex where relevant to the CCP which may be designed differently;

(b)

a description of the resolution scenarios chosen based on the assessment of the resolution authority considering the specific characteristics and level of complexity of the CCP, and of any additional scenarios designed in the resolution plan;

(c)

the resolution authority is to include quantitative assessment tools for each type of scenario, where possible depending on access to data, that is to be used to produce quantitative impacts for the resolution scenarios; where no data is available, and cannot be generated after employing reasonable effort, the resolution authority is to conduct, and reflect in the plan, a qualitative assessment of the tools to the extent possible, including details on to what extent a quantitative assessment has been undertaken for a certain scenario;

(d)

a description of the chosen resolution strategies for the resolution scenarios, specifying the following points:

(i)

a detailed description of the main resolution strategy that has been chosen, and if several strategies are chosen, how their application differs, whether different time frames would apply for their implementation, and the key strategic analysis that underlies the different choices of chosen resolution strategies;

(ii)

a detailed description of how the resolution authority has tested the envisaged strategies of the resolution plan, including how the resilience of the envisaged strategies based on the chosen scenario has been considered and whether issues or impediments could arise and if so, how they have been mitigated by revising the chosen strategy and scenario;

(iii)

a detailed description of conditions, to be assessed by the resolution authority in deciding whether to undertake an intervention under the resolution strategy, together with envisaged resolution tools;

(iv)

a detailed description of how the resolution strategy takes into account the impact on direct and indirect participants in the CCP as well as interdependencies such as other linked financial markets infrastructures and trading venues;

(v)

a detailed description of the effects of different resolution actions under the resolution strategies, such as resolution tools that would split netting sets and also descriptions of how this could affect other aspects of the functioning of the CCP such as liquidity and collateral requirements as well as other types of resolution tools including the sale of a business tool or the write-down or conversion;

(vi)

a detailed description of how the resolution strategy takes into account and ensures continuity of the CCP’s legal and technical arrangements and how the plan supports the transfer of its functions, including by providing for advance agreement with other financial markets infrastructures or relevant service providers.