The adoption of the CPMI-IOSCO guidance on cyber resilience for financial market infrastructures, for example, is an important step towards operational resilience.4 Yet, while CCP resolution remains a very unlikely event, the disorderly failure of a major CCP would be disastrous. Many CCPs are globally systemic, responsible for clearing global markets and with participants from across the world.
This is why the Financial Stability Board (FSB) guidance on central counterparty resolution, and its focus on planning and cooperation between authorities, is important. Cooperation in resolution planning, and co-ordination between recovery and resolution planning, is essential to ensure that a CCP is always able to continue performing its systemically relevant functions across all concerned jurisdictions. I will return to this in a minute.