It must be based on a clear definition of capital that needs to be transparent and it must be global to ensure competitive equality. The Basel Committee already has a strong foundation for such a definition, namely common equity and reserves.
First, we need to accelerate efforts to develop resolution plans for all major cross-border CCPs, in close cooperation with the relevant host authorities. International agreement to proceed in this direction was reached, in principle, back in 2014. [6] However, almost 10 years on, resolution plans have not been put in place for any of the major global CCPs.