ISDA And FIA Urge Global Coordination On CCP Stress Testing

In response to a Bank of England consultation on stress testing of central counterparty clearinghouses ("CCPs"), ISDA and FIA urged global regulatory coordination.

The associations raised a number of issues and considerations, including (i) the need for regulators to coordinate on stress testing; (ii) the inclusion of operational scenarios in stress tests; (iii) use of, in addition to "plausible" scenarios, scenarios looking at recovery and resolution situations; (iv) analysis of "contagion" risk; and (v) additional disclosure obligations on CCPs and their members.

Primary Sources

1. Response to the Bank of England consultation: Supervisory Stress Testing of Central Counterparties