Schedule 11: Central counterparties Part 5 – Special resolution action Cash call power
Paragraph 32 out the fifth stabilisation option (to make one or more cash-call instruments). This power allows the Bank to require clearing members of the CCP to pay a specified amount in cash to the CCP, in order to absorb losses and recapitalise the CCP.
	Sub-paragraph (3) states that HM Treasury may make regulations to determine the maximum cash amount that clearing members can be required to contribute, and specify circumstances in which the Bank may require a CCP to use specified funds of specified clearing members. It is the government’s intention in the near-term to use this power to set specific maximum cash limits, specifically two times a clearing member’s default fund contribution (for default losses) and three times a clearing member’s default fund contribution (for non-default losses).
	This power will not apply to certain clearing members, as clarified in sub-paragraph (4).