Recital 17

(17)In the event that a CCP clearing member is placed under resolution, and the resolution authority closed-out derivative contracts prior to a bail-in, that clearing member would qualify as a defaulting clearing member with regard to the CCP in relation to the particular netting set(s). The internal procedures and mechanisms governing the default of a clearing member (‘CCP default procedures’) implemented by CCPs in light of the requirements of Regulation (EU) No 648/2012 of the European Parliament and of the Council ³ , offer a reliable basis to determine the value of the derivative liability arising across the netting set from the close-out, also in the context of bail-in in a resolution process.