The CNMV implements six ESMA guidelines that develop the Regulation on the recovery and resolution of central counterparties (CCPRRR)

The CNMV notified ESMA of its compliance with six Guidelines related to the recovery and resolution of CCPs under Regulation (EU) 2021/23. These guidelines are part of the framework for the recovery and resolution of CCPs.
The guidelines are divided into two categories: recovery and resolution.
Recovery Stage:
– Guidelines on recovery plan scenarios for CCPs: These guidelines establish the number of scenarios to be included in CCP recovery plans, the types and sources of risk to be considered, and the information to be provided in the description of such scenarios. They also define the principles for determining the scope of scenarios and the criteria for their review.
– Guidelines on recovery plan indicators for CCPs: These guidelines outline the various categories of indicators to be included in the recovery plan. They also detail the factors to be considered when creating indicators and the criteria for reviewing them.
– Guidelines on early intervention measures:This set of guidelines outlines the procedure to be followed by the competent authority in case any of the general indicators mentioned in Article 18 of the CCPRRR on early intervention measures are activated.
– Guidelines specifying the circumstances of temporary restrictions: These guidelines align with Article 45 bis of EMIR, allowing competent authorities to request a CCP to limit or restrict the payment of dividends, share buybacks, and the payment of bonuses to senior management in case of relevant events of non-compliance.
Resolution Stage:
– Guidelines on the methodology to determine the valuation of contracts prior to termination: These guidelines aim to establish the valuation method for each contract cleared by the CCP pending execution, prior to its termination. The resolution authority shall determine a standard price for the termination of each contract.
– Guidelines on the application of circumstances under which a CCP is deemed to be failing or likely to fail: The purpose of these guidelines is to promote alignment between supervisory activities and resolution actions concerning situations where a CCP is deemed to be failing or likely to fail.
The CNMV’s compliance with these guidelines is in accordance with Article 16 of Regulation 1095/2010, which requires competent authorities and financial market participants to strive to comply with such guidelines.