KEY POINTS
Each European Union (EU) Member State has the following responsibilities.

Appointing one or more resolution authorities. These:
may be national central banks, ministries or public authorities with administrative powers;
have the expertise, resources, operational capacity and extensive powers to act quickly and flexibly.
Designating a single ministry with overall responsibility for exercising the functions entrusted to the ministries under the legislation.
Applying penalties for breaches of the regulation.
Resolution authorities establish, manage and chair a resolution college. This includes the relevant authorities and provides a framework to:

share information;
draw up resolution plans;
assess a CCP’s resolvability and possible obstacles;
coordinate public information about resolution plans and strategies.
The European Securities and Markets Authority (ESMA):

drafts various regulatory technical standards that will be adopted by the European Commission;
creates the ESMA Resolution Committee that will promote the drawing up and coordination of resolution plans and develop methods for the resolution of failing CCPs;
cooperates with the European Insurance and Occupational Pensions Authority and the European Banking Authority;
maintains a central database of national penalties applied for breaches of the legislation.
Competent authorities, resolution authorities and ESMA:

cooperate closely to carry out the tasks set out in the regulation;
base decisions on principles such as:
proportionality in view of the CCP’s legal form, size, complexity and liquidity,
the need for efficacy and timeliness, the need to keep down costs and, as far as possible, avoid use of public finance.
Recovery planning requires CCPs to draw up and maintain a recovery plan. These:

set out actions, with or without a default, to restore financial soundness;
include measures to address all possible risks, absorb losses and replenish financial resources;
contain indicators based on a CCP’s risk profile;
do not assume access to public finance or central bank liquidity;
consider the interests of all stakeholders;
ensure clearing members do not have unlimited exposure to the CCP.
It also requires the competent authority, supervisory college and resolution authority to assess the recovery plans and consider any changes.

Resolution planning requires the following.

The resolution authority of the CCP has to draw up a resolution plan that:
sets out how it would use its resolution powers to absorb losses and ensure the continuity of the CCP’s critical functions;
takes account of the impact of the plan on clearing members, financial markets and the financial system;
does not assume access to public finance or central bank help;
makes prudent assumptions about finance that might be available.
CCPs under resolution have to cooperate with the resolution authority and provide all the necessary information;
The resolution college has to agree on the plan, including any changes, within 4 months of receiving it.
Assessing resolvability requires the resolution authority, coordinating with the resolution college, to:

assess whether a CCP is resolvable, to enable it to continue operating its critical functions;
identify any obstacles to resolvability and instruct the CCP to take action to remove them.
Early intervention measures enable a competent authority to instruct a CCP it considers could be facing financial problems to:

take corrective action;
remove some or all of senior management or board members.
Resolution authorities take special account of the following when implementing their plans.

Objectives:
continuity of the CCP’s critical functions;
avoidance of damage to the financial system;
protection of public funds.
Conditions:
CCP actual or likely failure;
absence of alternative private sector solution;
importance of protecting the public interest.
Valuation:
two assessments to ensure a fair, prudent and realistic appreciation of the CCP’s assets, liabilities, rights and obligations.
Safeguards:
shareholders, clearing members and other creditors should not lose more than if the resolution authority had not intervened (‘No creditor worse off’ principle);
clients and indirect clients have the right to compensation clearing members may receive;
anyone affected by a crisis prevention order or resolution action has a right of appeal.
Resolution authorities can apply the following measures, individually or collectively.

Position and loss allocation. Terminating contracts, reducing a CCP’s payment obligations to non-defaulting clearing members or requiring the latter to make a cash contribution to the CCP.
Write-down and conversion. Reducing or converting the size of instruments of ownership, debt or other unsecured liabilities, requiring a CCP to provide and implement a business reorganisation plan.
Sale of business. Selling ownership or any assets, rights, obligations or liabilities of a CCP in the resolution procedure.
Bridge CCP. Transferring temporarily to another CCP (‘bridge CCP’) ownership or any assets, rights, obligations or liabilities of a CCP in the resolution procedure.
Alternative funding. Contracting to borrow or obtain other forms of financing to address temporary cash flow problems.请对英文部分进行概括，至于200-300字，并且有重点。中文。