Cooperation should also reflect the significant overlaps and interactions between potential default management, recovery and resolution scenarios and ensure that a core group of authorities from the most affected jurisdictions will be able to assess a CCP’s defences throughout its potential lifecycle in a consistent and coherent manner.
In addition, cooperation between authorities in charge of CCP supervision and oversight on the one hand, and resolution on the other, should ensure the consistency of recovery and resolution plans, the alignment of stakeholder incentives down the recovery waterfall and beyond, and the effective application of the “no creditor worse-off” principle.