Schedule 11: Central counterparties Part 5 – Special resolution action Write-down power
Paragraph 34 outlines the seventh stabilisation option (to make one or more write-down instruments). This power allows the Bank to cancel, modify or change the form of an unsecured liability which is owed by the CCP.
	Sub-paragraph (3) specifies that this power can only be used to recover losses incurred as a result of anything other than a clearing member defaulting. This power may also not be exercised for a number of liabilities, outlined in sub-paragraph (4), and HM Treasury will have power to make regulations to add to/amend this list of excluded liabilities.