Dealers urge further clarity on rules for ailing CCPs

New European rules stop short of defining resolution triggers

Europe wall
Banks want a clear delineation between resolution and recovery

Long-awaited rules from European lawmakers on the recovery and resolution of central counterparties (CCPs) give failing clearers too much latitude to foist losses on to members, dealers are warning. The European Commission's proposed rules, released on November 28, disappointed some clearing members who were looking for regulators to provide a well-defined road map for CCP recovery and resolution planning. "What we would like to see is some kind of ex-ante playbook for recovery and resolution