Some CCPs struggle in BoE stress test
First CCP stress test finds firms come close to depleting their buffers in baseline scenario
The Bank of England’s first stress test of central counterparties (CCPs) found firms are “resilient” to severe market stress, though some came close to exhausting buffers and faced liquidity shortfalls.
“The results confirm the resilience of the UK CCPs to market stress scenarios that overall are of equal and greater severity than the worst historical market stresses,” said deputy governor Jon Cunliffe. The test did not include a pass-fail threshold.
The test was based around the biggest
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