Article summary
The Financial Stability Board (FSB) has published a report on financial resources and tools for central counterparty (CCP) resolution. It includes a new standard which aims to ensure that resolution authorities have ready access to a set of resolution-specific financial resources and tools, as well as any unused recovery resources, to support the orderly resolution of a CCP. The standard also requires that adequate liquidity, loss-absorbing and recapitalisation resources and tools are available to maintain the continuity of a CCP’s critical functions and mitigate adverse effects on financial stability should resolution become necessary.
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