(1)

When drawing up resolution plans, resolution authorities should make sure to consider all the elements referred to Article 12(7), points (a) to (s) of Regulation (EU) 2021/23. The standards for the content of resolution plans should be sufficiently detailed to ensure that resolution plans are targeted and useful for the implementation of resolution strategies, while also allowing for sufficient flexibility to take into account the national legal framework in the area of insolvency law, as well as the nature and complexity of the CCP’s clearing business.

(2)

While all elements specifying the content of the resolution plans, which are regulated in Article 12 of Regulation (EU) 2021/23, should be included in the resolution plan, the resolution authority should ensure that these elements are reflected in the resolution plan in a suitable way considering the specific characteristics of the central counterparty (CCP), such as the nature and complexity of the clearing business performed by it.

(3)

The summary of the key elements of the resolution plan referred to in Article 12(7), point (a), of Regulation (EU) 2021/23 should be succinct and focused but at the same time containing sufficient explanations to cover the key elements of the plan that are to be disclosed to the CCP. The summary should make the CCPs aware of key actions that they should be able to perform and data they should be able to submit. The summary should focus on where that plan may have a material impact on the CCP’s recovery and crisis management planning, and clarify any expectations from the CCP as regards cooperation in the resolution phase and the measures that may affect the CCP’s functions.

(4)

In order to ensure the overall suitability and proportionality of the resolution plan, it should contain resolution scenarios and resolution strategies. The resolution authority should have the tools, in the form of different types of possible scenarios, including combinations thereof, to create relevant and suitable scenarios for the CCP, and a list of key aspects to be considered when establishing resolution strategies for the resolution scenarios.

(5)

In order to take into consideration the specific characteristics of the applicable national legal framework in the area of insolvency law, resolution authorities should have the flexibility to consider some aspects of resolution planning carefully, such as the mechanism under Article 60 of Regulation (EU) 2021/23, and any differences between the creditors ranking under the national insolvency procedures and the loss absorption order established under that Regulation. This overall flexibility is evidenced by this Regulation, which provides the elements to be reflected in the resolution plan, without prejudice to the required flexibility under Regulation (EU) 2021/23. The elements specified in this Regulation also do not preclude the resolution authority from determining other aspects to be reflected in the resolution plan.

(6)

To facilitate and ensure the effective implementation of the resolution plan, it is essential that, where the resolution authority has assessed certain aspects of the CCP differently from in the CCPs’ own assessment under the recovery plan, such differences are considered in light of a possible impact on the swift implementation of the resolution plan. Therefore, where any differences are identified, the resolution authority should consider them in the resolution plan and assess them to understand their effect, if any, on the implementation of the resolution plan.

(7)

To ensure that resolution plans, where necessary, can be effectively implemented in due time, it is essential that the resolution authorities have ‘proof tested’ the application of the intended resolution plan, to the extent possible, by testing processes and procedures in detail. Such testing should include sending emails and information to ensure that any pre-planned actions related to how and when to undertake certain steps and how and when to collect certain information are workable in stressed conditions and that any impediments found are corrected to ensure, to the extent possible, that the estimated time frames are likely to be respected.

(8)

To ensure that key employees remain at the CCP during the resolution phase, the resolution authority should try to assess and pre-empt incentive structures to be used, possibly not only linked to the CCPs future gains, but also direct remunerations and should consider how to ensure sufficient staff by considering short-term hires, exchanges, temporary allocations or consultancy arrangements of employees, where relevant, so that CCPs have the competence they need.

(9)

To ensure a swift and efficient cooperation with the authorities whose areas of competence would be affected by the failure of a CCP, and which are represented in the resolution college as defined under Article 4 of Regulation (EU) 2021/23, the resolution authority should prepare and regularly test the arrangements for notifying the resolution college and communicating any relevant information.

(10)

This Regulation is based on the draft regulatory technical standards submitted to the Commission by the European Securities and Markets Authority (ESMA) after consulting the European Systemic Risk Board.

(11)

ESMA has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits, and requested the advice of the Securities and Markets Stakeholder Group established by Article 37 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council (2),