EACH and CCP12 very much appreciate the opportunity to provide comments to the Financial Stability Board (“FSB”) on this important issue. Below you can find some of the key points included in our response:

We recognise that the consultation refers to FMIs as a group and the questions are addressed to the FMI community as a whole. We feel it is important to consider the unique roles of FMIs individually, rather than as a group, as different FMI types provide unique services that will require individual consideration. In particular, the firms represented by EACH and CCP12 are central counterparties and provide a service separate and distinct from other FMIs, such as payment systems. We understand the need to examine the impact of suspending access to critical CCP services, but suggest that regulators consider these impacts in relation to the materiality of services in question. In the wake of a resolution, access to clearing services may be less critical than access to the payment systems supported by other critical FMIs.
Broadly speaking, it is crucial that CCPs maintain the right to exercise appropriate flexibility to address stress events, including the resolution of a clearing member, or its affiliates or parent, as the facts and circumstances of the stress become known. As described in principle 2 of the Principles for Financial Market Infrastructure (“PFMIs”), CCPs “should have objectives that place a high priority on the safety and efficiency of the FMI and explicitly support financial stability and other relevant public interest considerations.” To meet these objectives and fulfil their role as risk managers and central counterparties, CCPs have to retain the ability to limit access to their cleared markets if necessary to protect their cleared markets from potential contagion risk brought by a member in resolution.
As described in more detail below, CCPs are committed to the security and stability of their markets and are prepared to work with our members in response to a resolution event at their firm. We look forward to continued engagement with the regulatory community to work toward these shared goals.