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31 May 2023

ESMA launches Fifth Stress Test Exercise for Central Counterparties


Fourteen CCPs authorised in the EU and two UK CCPs classified as Tier 2 (LCH Ltd, ICE Clear Europe Ltd) are included in this exercise.

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today launched its fifth Stress Test Exercise for Central Counterparties (CCPs) under the European Markets Infrastructure Regulation (EMIR). The CCP Stress Test framework is complemented by an adverse market scenario provided by the European Systemic Risk Board (ESRB).

Verena Ross, Chair, said:
‘’The CCP Stress Test is a key supervisory tool for ESMA. The Fifth Stress Test exercise examines core risk categories in light of ESMA’s evolving mandates and takes a closer look at the impact of a possible spill over of risks to financial markets. We are not only stress testing CCPs, but also measuring potential risks to the broader financial eco-system’’


Klaus Löber, Chair of the CCP Supervisory Committee, said:
“This year’s exercise draws on experience from previous years as ESMA introduces additional stress scenarios and assesses the resilience of EU and Tier 2 Third Country CCPs to a wider range of risks. New in this exercise is the inclusion of climate risk, in addition to the assessment of liquidity, credit and concentration risks.”

ESMA



© ESMA


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