Info
🔗 Back to Summary. 🇫🇷 French Version: 2023R0451_FR.2. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 1 – Assessment of a CCP’s capital structure and financial risk ⬅️ | ➡️ Article 3 – Assessment of the organisational structure of a CCP
Article 2 - Assessment of a CCP’s default waterfall
Competent authorities and supervisory colleges shall assess the adequacy of a CCP’s recovery plan in respect of that CCP’s default waterfall by considering all of the following factors:
(a)
whether the default waterfall and different paths of loss propagation are clearly specified and whether the consequences of any losses are modelled in accordance with the rules allocating those losses, including arrangements between the CCP and its clearing members and the overall risk management framework of the CCP, such as the CCP rulebook;
(b)
whether relevant legal risks have been assessed and addressed in ensuring the enforceability of the waterfall, including with regard to clearing members that are domiciled in third-country jurisdictions.