Schedule 11: Central counterparties Part 5 – Special resolution action Consequences of a replacement valuation
Paragraph 26 provides that, where an independent valuation produces a higher valuation of the net asset value of the CCP than a provisional valuation, the Bank may modify and liability of the CCP which has been reduced, deferred or cancelled by a write-down instrument, to reinstate that liability. They may also instruct a bridge CCP to pay additional considerations to the persons outlined in sub-paragraph (1)(b).This is subject to certain conditions, outlined in sub-paragraph (2).