11. The Description of the Exchange Mechanic should at least include the following information: a. …

The Description of the Exchange Mechanic should at least include the following information:

• a. Identification and description of the role of the stakeholders to be involved in the pro-cess of the Exchange Mechanic, including central securities depositories, potential spe-cial manager⁷ , relevant market authorities and, where relevant, any exchange adviser to be appointed by the resolution authority to support the execution of the exchange mechanic. The description should include, where possible, their contact details.
• b. Approach to the discontinuation or suspension of trading and delisting or removal of instruments from the trading venues.
• c. Clear description of the functioning of the potential interim instrument, if any.
• d. Description for the write-down and cancellation of relevant instruments, including pos-sible solutions for dealing with instruments whose transactions have not yet been set-tled (“in - flight transactions”) .
• e. Detailed description, albeit indicative, of the conversion process, including delivery of new instruments where relevant, which may refer to one of the following:
• a. Conversion of bailed- in instruments or liabilities into new equity (“direct con-version”);
• b. Conversion of bailed-in instruments or liabilities involving interim instruments;
• c. a mix of both.
• f. Approach to address potential differences between definitive and provisional valua-tion, such as a compensation in case of over-conversion.
• g. Approach to deal with any fractional shares.
• h. A detailed, albeit indicative, timeline for the steps above to be realised, with appropri-ate distinction between:
• a. the resolution planning phase,
• b. the implementation of the resolution decision,
• c. the period in which the exchange mechanic is implemented; and
• d. the end of the resolution procedure.
• i. Indicative templates or the main features of the legal instruments to be used to for-mally implement bail-in, where available.

⁷ If appointed, in accordance with Article 35 of Directive 2014/59/EU.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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