International Standard Setters Publish Framework For Supervisory Stress Testing Of Multiple CCPs

On April 10, 2018, the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions published a Framework for the supervisory stress testing of CCPs, following a joint consultation launched in June 2017. In April 2015 the CPMI and IOSCO were asked by the G20 to develop, in conjunction with the Financial Stability Board and the Basel Committee on Banking Supervision, a "CCP workplan" for identifying and addressing remaining gaps and potential financial stability risks related to CCPs that are systemic across multiple jurisdictions and for helping to enhance their resolvability.

As part of the CCP workplan, CPMI-IOSCO evaluated the stress-testing policies and practices of CCPs and identified that supervisors needed a stress testing framework that would enable them to better understand the macroprudential risks that could materialize were multiple CCPs to face a common stress event at the same time. The Framework provides