London, 28 November 2016 – The World Federation of Exchanges ("WFE"), which represents more than 200 market infrastructure providers including exchanges and central counterparties ("CCPs"), today notes the European Commission's proposal for regulation regarding the recovery and resolution of CCPs, and welcomes the importance placed on consistency with international standards.

The proposed legislation, which will need to be ratified by the European Parliament and the Council of the EU, seeks to ensure the orderly recovery of CCPs in various scenarios of financial distress. If recovery proves to be insufficient and resolution conditions are met, authorities will be required to take swift action to safeguard financial stability, ensure the continuity of the CCP's critical functions, and protect taxpayers.

The Commission notes its proposal seeks to align itself with international standards from CPMI-IOSCO and the Financial Stability Board (FSB), particularly related to cross-border instances of CCP resolution. It also makes clear it is the responsibility of the resolution authority to consider which tools or actions could have an impact on financial stability.

As outlined in its two most recent consultation submissions on the topic, (to the FSB and to CPMI-IOSCO), the WFE's position is that recovery should be given every opportunity to succeed, and that resolution should only be invoked as a last resort. CCPs and competent authorities should have appropriate tools and flexibility to enable this to happen, particularly in times of market stress.

Nandini Sukumar, CEO, WFE said: "We welcome the European Commission's proposal to be in broad alignment with international standards from CPMI-IOSCO and the FSB. Markets are global and the issues are global – WFE members across the world are focused on CCP recovery and resolution. The WFE maintains its position that while it is important to have well documented and suitably robust resolution plans, a CCP-led recovery is preferable for the broad markets rather than resolution. We will now work with our members in the WFE Post-Trade Working Group who represent different geographies and asset classes to forge consensus on the global industry view."

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About the World Federation of Exchanges (WFE):

Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups. The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data indicators. Its statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges.

The WFE's post-trade mandate is one of the four pillars of its work, and is led by its Post-Trade Working Group of technical experts from CCPs globally (the WFE's PTWG). The WFE fulfils its mandate through a combination of policy responses to global regulatory organisations such as IOSCO, BCBS and FSB, and through educational services to its members, many of whom come from smaller, emerging markets as well as the world's largest CCPs and exchanges. The WFE forges consensus globally among CCPs on the issues that matter, creates industry-led codes of conduct, guidelines and standards as part of its endeavours to improve systemic stability, integrity and quality. In addition, one of WFE's two annual conferences, the IOMA conference in Spring, is devoted to post-trade issues.

WFE exchanges are home to nearly 45,000 listed companies. The WFE promotes the development of fair, efficient and transparent markets. It works with policy makers, regulators and standard-setters around the world to support the development of effective rules and standards for exchanges and market participants. For more information, please visit:

For more information, please contact:

Anna Watson

Head of Communications, World Federation of Exchanges

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone: +44 20 7151 4137

Twitter: @WFE