In such circumstances, resolution funding that relies entirely on ad hoc funding could raise challenges as funds would need to be increased at the height of market stress, which could in itself further exacerbate market disturbances and may simply not work. Temporary public funding could be difficult to recover from the private sector in a comprehensive and timely manner.
Especially in the case of global CCPs with members dispersed across multiple jurisdictions, there could be challenges in enforcing purely contractual obligations on a cross-border basis over a longer-term horizon, including in view of potential changes in the CCP landscape following the resolution of a CCP.