Global standard setters CPMI and IOSCO want clearing houses to beef up client clearing services and porting practices, but market experts warn of impossible hurdles.
Resolution and Recovery
CPMI and IOSCO consult on CCP access and porting practices
Global standard setters are consulting on ways for client positions at a defaulting central counterparty clearing houses (CCPs) to be ‘ported’ to a viable clearer to avoid quickly liquidating positions, which could disrupt markets.
Bad insolvency regimes keep Europe’s zombie firms alive
Propping up zombie firms beyond the point of viability is often blamed on the banks that continue to support them. However, inefficient resolution regimes might be the real cause.
FDIC to exempt some information from bank resolution plans
Some insured depository institutions (IDIs) are being exempted from certain content requirements for resolution planning, the Federal Deposit Insurance Corporation (FDIC) said in a statement on June 25.
South Africa beds down bank resolution plans following slow progress
South Africa is catching up with its post-financial crisis obligations with a series of reforms that have been in the works for years as it learns from the experience of other jurisdictions.
Private equity firms helped stabilise financial system during last crisis
Research has shown that private equity (PE) investors not only helped failing banks recover well by buying into them after the 2007–2009 global financial crisis (GFC), but also contributed to financial stability, according to a paper published by the Federal Deposit Insurance Corporation (FDIC) on April 22.
Swiss systemic firms improve resolvability, but more work needed
Swiss systemically important financial institutions have been making good progress in their recovery and resolution planning according to an annual report from the Swiss Financial Market Supervisory Authority (FINMA) published on March 19.
FSB to publish recommendations to strengthen money market funds
The Financial Stability Board (FSB) will make recommendations to make money market funds (MMF) more resilient so they do not need public sector support next time markets are in turmoil as happened last March due to the Covid-9 pandemic, said Federal Reserve Board vice chair for supervision and FSB chair, Randal Quarles.
ECB says Covid-19 has reduced eurozone banks' recovery capacities
One of the key findings from the economic shock caused by the Covid-19 pandemic is that it may have significantly reduced the overall recovery capacity of eurozone banks, the European Central Bank (ECB) warned in its February supervisory newsletter.
FSB treads fine line on CCP resolution issue in final guidance
Clearing house members have cautiously welcomed the latest FSB guidance on CCP resolution, which contained few surprises, but argue it should go even further.
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