Debt Office’s role within resolution grows
News 22 helmikuuta 2022
The Government has decided on a referral to the Council on Legislation proposing that the Swedish National Debt Office be made the resolution authority for central counterparties as well. Central counterparties have become increasingly important actors in the financial system with greater significance for financial stability.
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. The Government has decided on a proposal referred to the Council on Legislation for consideration to develop an effective strategy for the crisis management of central counterparties. It is proposed that the Debt Office become the resolution authority, a role it already has for banks and institutions.
We welcome this decision. It is logical to house the resolution responsibilities within the same government agency, considering the synergy gains. Furthermore, the Debt Office has built up valuable experience regarding resolution, which we can utilise in this new assignment,” says Karolina Ekholm, Director General of the Debt Office.
The fundamentals of resolution entail assuming control of failing financial firms in an efficient manner without taxpayers having to bear any significant costs involved. The bill is proposed to enter into force on 12 August 2022.