Last week Member State representatives met to continue discussion on the November 2016 European Commission’s proposal for a regulation on CCP recovery and resolution (CCP RR, link). It was the second meeting hosted by the current Maltese Presidency of the Council. The agenda included discussion of the treatment of clearing members, their clients, and any linked financial market infrastructures (FMIs) in the Member State where the CCP provides services; provisions regarding the ESMA resolution committee and the functioning and structure of resolution colleges. With regards to the latter, the discussions were focused on a proposal put forward by one Member State to adapt the model of resolution colleges for CCPs in line with the existing model for groups under Bank Recovery and Resolution Directive (BRRD). The main elements of this proposal include the introduction of two college compositions within CCP resolution college with the aim of allowing more efficient decision making. Such dual composition should also allow the participation in the college of those authorities that would be affected by the resolution of a given CCP. According to this proposal, the resolution college should be divided into two forums – one broader, providing a platform for strategic discussions concerning the CCP (General College) and a smaller one, tasked with operational decision-making (Core College).
The Maltese Presidency is planning to host at least two other Council working group meetings and to issue an initial compromise proposal before the end of its term on 30 June. In the Parliament, the Economic and Monetary Affairs Committee (ECON) will hold a public hearing on CCP RR proposal at the end of March 2017.