Regulatory Alerts2023-05-31
Framework for the 5th ESMA Stress Test Exercise for Central Counterparties
ESMA issued this final report to establish the methodology and scope for the fifth stress test exercise assessing the resilience of EU and Tier 2 Central Counterparties. The framework introduces a new climate risk component and reintroduces liquidity stress testing alongside updated credit, concentration, and reverse stress tests. It mandates specific data reporting and resource commitments from National Competent Authorities to evaluate systemic vulnerabilities under adverse market scenarios.
Share