Debt Office becomes resolution authority for central counterparties
News 1 June 2022
Yesterday, the Riksdag appointed the Swedish National Debt Office as the resolution authority for central counterparties – a role that the agency already has for banks and other financial institutions. Resolution is a specific procedure for the orderly crisis management of a bank or central counterparty, intended to prevent any significant costs for taxpayers.
At the beginning of the year, the Government decided on a referral to the Council on Legislation proposing that the Debt Office be made the resolution authority for central counterparties as well. Yesterday that proposal was adopted by the Riksdag, thereby giving the Debt Office the assignment.
“We look forward to beginning this new assignment. The preliminary groundwork has already been done. Moreover, we will also be able to apply the expertise from our corresponding assignment for credit institutions and investment firms,” says Debt Office Director General Karolina Ekholm.
Central counterparties are companies that serve as intermediaries between buyers and sellers in a financial transaction. In Sweden there is one central counterparty: Nasdaq Clearing AB. Central counterparties have become increasingly important actors in the financial system, with greater significance for financial stability.
The new assignment officially begins on 12 August 2022.