2. A CCP shall be deemed resolvable where the resolution authority considers it feasible and credible to either liquidate it under normal insolvency proceedings or to resolve it applying the resolution tools and exercising the resolution powers while ensuring the continuity of the CCP’s critical functions and avoiding any use of extraordinary public financial support and, to the maximum extent possible, any significant adverse effect on the financial system and the potential for undue disadvantage to affected stakeholders.
The adverse effects referred to in the first subparagraph shall include broader financial instability or system wide events in any Member State.
The resolution authority shall notify ESMA in a timely manner where it considers that a CCP is not resolvable.