Requirements relating to safeguards on financial soundness
Article 2
1. In order to safeguard their financial soundness, eligible CCPs shall meet the following requirements on an ongoing basis: (a) the capital requirements pursuant to Article 16 of Regulation (EU) No 648/2012; (b) the margin requirements pursuant to Article 41 of Regulation (EU) No 648/2012; (c) the requirements in relation to pre-funded financial resources pursuant to Articles 42 and 43 of Regulation (EU) No 648/2012. 2. In the event of a default of a clearing member of a CCP where the CCP conducts its default management process in accordance with Articles 45 and 48 of Regulation (EU) No 648/2012 and as a result uses the margins posted by the defaulted clearing member and the pre-funded financial resources referred to in Articles 42 and 43 of Regulation (EU) No 648/2012, the following shall apply: (a) the CCP shall have sufficient pre-funded financial resources, including the margins posted by the defaulted clearing member and the pre-funded financial resources, as set out in Articles 42 and 43 of Regulation (EU) No 648/2012, to cover credit losses incurred as a result of the default management process; (b) on the basis of the assessment conducted in accordance with Article 4, the Eurosystem central banks may decide to temporarily waive the requirement set out in paragraph 1, point (c), where the CCP presents a plan to replenish pre-funded financial resources as set out in Articles 42 and 43 of Regulation (EU) No 648/2012 in a credible and timely manner. 3. No CCP deemed to be failing or likely to fail as determined under Article 22 of Regulation (EU) 2021/23 of the European Parliament and of the Council ( 4 ) shall be considered financially sound.