The Bank of Italy and the role of national resolution authority for central counterparties

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Summary:

The Banca d'Italia will take on the role of the single resolution authority for central counterparties (CCP) with a legal seat in Italy on January 31, 2024, as per the December 6, 2023 Legislative Decree no. 224. This legislation implements the European Union's Regulation (EU) 2021/23 on a framework for resolution and recovery of central counterparties. The framework aims to enhance the preparedness of financial institutions and authorities to address crises and provides authorities with the powers to prepare for potential CCP resolution, with the objective of preserving essential functions, financial stability, market protection, and minimizing the cost of the crisis for taxpayers. The new function will be carried out by the Banca d'Italia's Unit of Resolution and Crisis Management, which already has responsibilities for resolution and crisis management of banks and non-banks.