Schedule 11: Central counterparties Part 7 – Third-country resolution actions
Paragraph 145 applies where the Bank is notified of third-country resolution action, in respect of a third-country central counterparty. With the approval of HM Treasury (sub-paragraph (3)), the Bank must make an instrument which either recognises the action, or refuses to recognise the action, or recognises part all or part of the action but not the remainder (sub-paragraph (2)).
	Recognition of the action may be refused if the Bank and HM Treasury are satisfied that the conditions in sub-paragraph (4) are met, and recognition of third-country resolution actions is without prejudice to normal insolvency proceedings (sub-paragraph (5)).
	Paragraph 146 applies where an instrument under paragraph 145 recognises all or part of the third-country resolution action. The third-country resolution actions produce the same legal effect in any part of the UK as it would have produced had it been made under the law of the relevant part of the UK. The Bank may, to support or give full effect to a third-country resolution action, exercise one or more stabilisation options in relation to the third-country central counterparty (sub-paragraph (3)).
	Sub-paragraph (4) provides further detail on which instruments these provisions may sit within, and that the wider Schedule applies to any power exercised under sub-paragraph (3), pending the modifications made in sub-paragraphs (6) and (7).
	Paragraph 147 applies (with some modifications) certain other paragraphs within the Schedule to a third-country instrument.