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The European Association of CCP Clearing Houses has today responded to the Bank of England Discussion Paper on the Supervisory Stress Testing of Central Counterparties. The response provides feedback based on EACH Members’ experience from several Stress-Testing exercises aimed at analysing the robustness of the European CCP system.
In the EACH response they suggest amongst other:
- Timing – It is useful to give CCPs a clear overall timeline for the stress test exercise. Furthermore, giving CCPs a clear timeline for the various specific parts of the exercise is also important as it will aid CCPs in planning resources for the exercise.
- Frequency – EACH suggests that coordination with other authorities conducting similar exercises should be done to ensure that all such similar exercises can be done as efficiently as possible.
- Exercise objectives – EACH also suggests that the Bank of England shares the objectives of the different parts of the exercise with CCPs to better enable them to meet the goals and expectations of the authorities.
For more information, please see the EACH paper available via this link or visit the EACH website at www.eachccp.eu
