Notice concerning the operational procedures for the execution of the bail-in within the Italian central depository and settlement systems

The international regulation and standards relating to banks' resolution recommend the definition of clear and standardized procedures aimed at ensuring the effective and smooth execution of resolution measures adopted by the resolution Authorities.

In this context, Banca d'Italia, as resolution Authority, promoted the establishment of a Task Force, involving the Italian central depository Monte Titoli - Euronext Securities Milan and the industry, including the Italian Banking Association - ABI and the Italian association for intermediaries of the Italian financial markets - ASSOSIM, aimed at analysing the impacts on the post-trading procedures stemming from the write-down and conversion measures relating to financial instruments subject to a potential bail-in order and at defining roles, timelines and operational steps for the execution of such resolution measures within Italian central depository and settlement systems (so called external execution of bail-in). The aim is also to support the banks in drafting the bail-in playbooks requested by the Authorities within the resolution planning activities.

At the conclusion of the works, to which Banca d'Italia and the Italian market Authority - Consob took part as observers, the Task Force drafted a Report, which is now available on the Monte Titoli - Euronext Securities Milan website. The document summarizes the contributions received by all the participants to the working group and the clarifications and the considerations shared with the Authorities.