Inter-institutional negotiations on the proposal for a Regulation establishing a single resolution and recovery framework for authorised central clearing houses (CCPs) in the EU resumed (see EUROPE 12426/7) on Friday 19 June and may already be concluded at the next 'trilogue' on the evening of Tuesday 23 June.
At least that is the objective that the co-legislators have set themselves, we have been told. However, according to a European source, there are still a number of open issues, including governance and, in particular, the composition of the colleges of the resolution authorities.
The "second skin in the game"- an amendment introduced by the European Parliament and rejected by the EU Council, which would oblige the CCP to hold equity capital in order to be able to handle default - also remains a sensitive issue.
According to the same source, on Friday the Croatian Presidency of the Council of the EU presented a compromise package to the European Parliament. It also indicated that it was prepared to accept the inclusion of 'variation margin gains haircutting' (or VMGH) and 'partial tear-up' as part of the CCP recovery plans.
Zagreb is also said to have argued for a closed list of resolution tools and, with the Commission's support, for capping 'cash calls' and banning discounts on initial margin haircutting.
However, the European Parliament considered the Presidency's compromise insufficient as far as the "second skin in the game" was concerned and considered that a more in-depth discussion on the resolution tools was still necessary. (Original version in French by Marion Fontana)