The European Parliament’s Economic and Monetary Affairs committee confirmed that a report drafted by Kay Winburne and Jacob von Weizsacker received support and was voted through. The position of the European Council is yet to be finalized, according to a press release issued on Linked In.
MEP Kay Swinburne said: “Key to the Parliament’s position is the correct and effective aligning of incentives, all the way from the default waterfall, through to the recovery stage and on to resolution. It is vital therefore, that every participant in the clearing process is fully committed to the resilience of these critical financial market infrastructures.”
She added that the committee has ensured that the Resolution Authority can take quick, decisive action by agreeing on a “No Creditor Worse Off” Principle that is based on quantifiable factors. A further prominent theme through the Parliament’s report of protective safeguards for the end user are those participants mandated to use the CCP but lacking influence over its operating rules, management and procedures.