EACH welcomes CCP recovery and resolution work 01 February 2018Brussels Reporter: Brian Bollen
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The European Association of CCP Clearing Houses (EACH) has welcomed the progress made by the European Parliament鈥檚 Committee on Economic and Monetary Affairs (ECON) to strengthen the legislative proposal from the European Commission on central counterparty (CCP) recovery and resolution.
In a statement made earlier this week, EACH said that building on international work and the initial commission proposal, with a clear structure on a flexible and comprehensive toolkit for CCPs, the work has resulted in additional safeguards for financial stability; preserved the crucial incentives structure on which CCPs are based; and ensured alignment with international standards.
The work was led by Kay Swinburne and Jakob von Weizs盲cker, members in the European Parliament (MEPs), together with shadow MEPs and the rest of their colleagues in ECON.
EACH added that it is particularly pleased that the European Parliament has added safeguards against the moral hazard, which could potentially discourage commitment to a private sector solution in order to benefit from public bailout.
EACH hopes that the EU Council will work in the same direction and that the legislative framework for CCP recovery and resolution will be in place shortly.
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