1. CCPs shall draw up and maintain a recovery plan providing for measures to be taken in the case of both default and non-default events and combinations of both, in order to restore their financial soundness, without any extraordinary public financial support, and allow them to continue to provide critical functions following a significant deterioration of their financial situation or a risk of breaching their capital and prudential requirements under Regulation (EU) No 648/2012.

2. The measures included in the recovery plan shall:

(a) comprehensively and effectively address all the risks identified in the different scenarios, including possible uncovered liquidity shortfalls;

(b) in the case of losses due to a default event, ensure the re-establishment of a matched book and the full allocation of uncovered losses to clearing members, and to their clients if those clients are direct creditors of the CCP, and to shareholders, taking into account the interests of all stakeholders;

(c) include loss-absorbing arrangements that are adequate to cover the losses that might arise from all types of non-default events; and