Last week Member State representatives met to continue discussions on the proposal for a Regulation on central counterparty (CCP) recovery and resolution. The Presidency compromise text, published on 28 April 2017, served as a basis of discussion. In this compromise text, the Presidency has sought to reflect Member States discussion thus far, as well as to align the text more closely to the Financial Stability Board guidance on CCP resolution and resolution planning which is currently being consulted on but is expected to be finalised in June 2017. Additionally, NRFLLP understands that the Member States continued discussions on the composition of resolution colleges, the treatment of group structures, recovery plan requirements, and the alignment of the proposal with the relevant provisions of the proposed amendments to the Bank Recovery and Resolution Directive. The more substantive discussions on the proposed recovery and resolution tools and necessary safeguards has yet to begin. There will be one final Council Working Group under the Maltese Presidency before Estonia takes over the chairmanship of the meetings from July 2017.
Meanwhile, the European Parliament’s timetable for adopting a position has slipped somewhat. The draft report was initially scheduled to be published by the end of April 2017 but is now expected in June/July 2017. The co-Rapporteurs of the report, Kay Swinburne MEP and Jakob von Weizsäcker MEP, will host a stakeholder workshop at the end of May to discuss the proposal in order to further inform their report.