Article 2
Description of the measures to be adopted to restore the CCP’s long-term viability
1. A description of the measures to be adopted to restore the CCP’s long-term viability as referred to in Article 37(2), point (b), of Regulation (EU) 2021/23 shall include all of the following elements:
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(a) |
a description on how the measures to be adopted are suited to the strengths and weaknesses of the CCP, in particular in relation to the clearing services provided by the CCP and the economic and financial environment in which the CCP operates; |
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(b) |
a description on how the measures to be adopted take account of the detailed analysis referred to in Article 1, with a description of the extent to which those measures are derived from the factors and circumstances identified in that analysis; |
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(c) |
a description on how the measures to be adopted have included any of the measures previously identified in the recovery plan, where such measures remain valid for the CCP’s strategy to restore its long-term viability; |
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(d) |
a description on how the CCP has used the relevant information and assumptions in relation to its envisaged clearing services, envisaged operational viability and capacity taking into account service providers as well as linked entities and other financial market infrastructures (FMIs); including a description of how the CCP has taken into account the estimated effect of the envisaged measures on market integrity and financial stability, in order to develop each of the measures under the business reorganisation plan and to forecast its performance under each such measure to ensure that the measures to be adopted are suited to the aim of restoring its long-term viability; |
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(e) |
a description on how the measures are linked to the outcome of the analysis of the factors and circumstances that caused the CCP to fail or to be likely to fail, and to the event that caused the resolution plan to be triggered; |
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(f) |
a description on how the measures to be adopted take into account the following:
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For the purposes of the first subparagraph, the level of information in the description of different measures may vary depending on the likelihood that those measures will be adopted under the business reorganisation plan.
2. Any assessments and assumptions made, including the consideration of the viability performance criteria and financial performance criteria set out in Articles 8 and 9, to identify the measures to be adopted under the business reorganisation plan shall be described and compared with the appropriate sector-wide benchmarks for the instruments cleared and shall reflect available macroeconomic forecasts for clearing such instruments.
3. The business reorganisation plan shall include an analysis of the assumptions underpinning the best-case and worst-case scenarios, and the measures deriving from those scenarios. Restoration of the CCP’s long-term viability shall be possible under all scenarios, although the period for implementation, the measures to be adopted and the financial performance may differ.
4. Where several measures to be adopted to restore the CCP’s long-term viability are included in the business reorganisation plan, the description referred to in paragraph 1 shall include the following:
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(a) |
a justification of the different measures including a description of the different assumptions applied; |
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(b) |
a description of how each of the different measures will restore, jointly or independently, the long-term viability of the CCP; |
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(c) |
a description of the hierarchy in the application of the measures. |
5. The business reorganisation plan shall include a general description of any alternative measures disregarded in the process of drawing up the business reorganisation plan.