INTERNATIONAL: CPMI and IOSCO Issue Guidance on Supervisory Stress Testing of Central Counterparties

Wednesday April 11 2018

On 10^th April 2018 , the  Payments and Market Infrastructures (PMI) and International Organization of Securities Commissions (IOSCO) issued updated guidance on its central counterparties (CCPs)  supervisory stress testing. This framework provides national authorities with guidance on their implementation of supervisory stress tests for CCPs.

The CCP supervisory stress testing framework is designed to support tests conducted by one or more authorities that examine the potential macro-level impact of a common stress event affecting multiple CCPs. Among other things, such supervisory stress tests could help authorities better understand the scope and magnitude of the interdependencies between markets, CCPs and other entities such as participants, liquidity providers and custodians.

This type of supervisory stress test is different from, yet may complement, other stress testing activities conducted by authorities seeking to evaluate the resilience of individual CCPs.

The updated report takes account of contributions during the CCP Stress Testing  consultation which occurred in June 2017.

For additional information please click the link above.