EU CCP Recovery and Resolution Regulation (‘EU CCPRRR’) establishes a harmonised framework for the recovery and resolution of CCPs established in the EU. EU CCPRRR is intended to ensure that both CCPs and their regulators will act decisively in a crisis scenario to keep CCPs providing their critical functions and to limit the impact on the financial system and on public funds.

FIA has worked with members and external counsel on analysing the impact of the following three EU CCPRRR requirements on clearing firms:

• Article 9(23) – clearing member disclosure on how measures in a CCP’s recovery plan may affect clients;
• Article 87(7), which introduced EMIR Article 38(8) – clearing member disclosure of the potential losses or other costs that the client may bear as a result of the application of the default management procedures and loss and position allocation arrangements under the CCP’s operating rules; and
• Article 63 – Safeguards for clients and indirect clients.

In addition to the disclosure documents that are available to members and non-members for a fee below, we have also produced the following documents that are available to FIA members free of charge. Please read carefully the disclaimer language before accessing and using the documents. 

FIA has also worked with US FCMs and external counsel on the application of EU CCPRRR Article 63 on US FCMs.  

Disclaimer:

FIA has published the documents below for use by FIA subscribing firms, who may but need not be FIA members, in their capacity as clearing members or clearing service providers with respect to specific clearing member requirements set out in EU CCPRRR, as amended. Subscribing firms are free to use the documents available below in whatever form they wish, provided that, to the extent any amendments are made to them, subscribing firms must highlight to any client to which they send the amended form of this Template that FIA has not reviewed, and is not responsible, for the amendments made to the documents. Any subscribing firm using any of the documents below should carefully consider the full scope of legal, regulatory and commercial requirements that may apply to their particular circumstances. Subscribing firms may also wish to consult with their legal counsel and any other advisors or consultants they deem appropriate before using any of the documents below.

While care has been taken to assure that the content is accurate as of the date of publication, the documents below are not intended to constitute legal, regulatory or other advice. FIA specifically disclaims any legal responsibility for any errors or omissions and disclaims any liability for losses or damages incurred through the use of any of the document published below. FIA may from time to time publish amended versions of the documents but undertakes no obligations to update them following the date of publication.

FIA EU CCPRRR Clearing Member Dislcosures

FIA has worked with members and external counsel to produce industry standard documents that help clearing members of EU CCPs meet their requirements under EU CCPRRR Article 9(23) and Article 87(7). They include information about (i) how measures in a CCP’s recovery plan may affect clients (Article 9(23)), and (ii) the potential losses or other costs that clients may bear as a result of the application of the default management procedures and loss and position allocation arrangements under the CCP’s operating rules (Article 38(8) of the European Market Infrastructure Regulation (EMIR), which is introduced by Article 87(7) of CCPRRR).

Our approach to these documents and the terms under which they can be accessed by FIA member and non-member firms are outlined in a slide deck (here). In case of questions or if you wish to get access to these documents, please contact us by sending an email to Mitja Siraj, VP Legal, Europe at msiraj@fia.org.