Therefore, fiscal risks would in fact appear to arise in countries in which major CCP participants are located. Domestic authorities may need to provide these participants with financial support if they are faced with large payment obligations due to CCP losses.
Thus, EU-wide coordination in resolution planning is necessary to ensure that system-wide risks are fully identified and mitigated in a fair and effective manner. At the same time, a resolution is not a discrete event. The boundaries between default management and recovery and resolution are blurred, so it is important to align responsibilities and control measures throughout the potential lifecycle of EU CCPs.