Schedule 11: Central counterparties Part 5 – Special resolution action General conditions
Paragraph 17 outlines the conditions that must be met for a stabilisation power to be exercised.
	There are four conditions which are not in order of priority:
Condition 1: The CCP is failing or likely to fail (within the meaning given in sub-paragraph (6));
Condition 2: It is not reasonably likely that (ignoring the stabilisation powers) action will be taken which means the CCP is not likely to fail, or actions undertaken by the CCP to prevent failure might have an adverse impact the stability of the financial system of the UK;
Condition 3: The exercise of the power is necessary having regard to the public interest, in the advancement of one or more of the special resolution objectives;
Condition 4: One of more of the special resolution objectives would not be met to the same extent by the winding up of the CCP.
	Paragraph 17(10) clarifies that the Bank must consult the FCA and Treasury (and in some cases the PRA) before determining if conditions 2, 3 and 4 are met.