Central counterparties’ recovery plan: AMF complies with ESMA guidelines on recovery plan indicators and scenarios

Purpose of the guidelines

Published on 23 March 2023, these guidelines seek to regulate central counterparties (CCPs) while elaborating the recovery plan that shall prepare them to face potential financial and operational difficulties and thus limit the systemic risk. These guidelines also aim to assist competent authorities in the context of performing the assessment of CCPs’ recovery plan.

Regulatory framework

In accordance with article 9 of the CCPs recovery and resolution Regulation, CCPs shall draw up and maintain a recovery plan providing for measures to be taken in the case of both default and non-default events and combinations of both, in order to restore their financial and operational soundness. This plan shall notably be assessed by the competent authorities.

ESMA's guidelines provide guidance on the preparation of this recovery plan relating to the scenarios on the basis of which it should be built. They also provide guidance on the indicators which should allow to identify in which situation the plan should be implemented.

Deadline

Under the “comply or explain” procedure, these guidelines will apply from 24 May 2023.