Schedule 11: Central counterparties Part 5 – Special resolution action Bridge central counterparty
Paragraph 29 sets out the second stabilisation option (bridge central counterparty). It allows the Bank to transfer all or part of the business of a CCP to a company which is a) wholly or partially owned by the Bank, is b) controlled by the Bank, and is c) created for the purposes of receiving a transfer by virtue of this paragraph. The option is designed to facilitate a temporary arrangement in order to maintain access to critical clearing services, with the view to eventually selling the CCP or its business. The Bank can make one or more property or share transfer instrument(s) for this purpose.
	Sub-paragraphs (4) and (5) set out the provisions that must be included in the code of practice referred to in paragraph 16, and the situations in which the Bank must take necessary steps to wind up the bridge CCP.
	Sub-paragraphs (9) and (10) set out circumstances pertaining to an "onward bridge central counterparty", whereby the business of a CCP first transferred by a property transfer instrument is later transferred to another company wholly owned by the Bank.