ESMA has announced the publication of its first EU-wide stress test exercise regarding Central Counterparties. ESMA is mandated to conduct stress tests of CCPs under the European Markets Infrastructure Regulation (EMIR). The stress test assesses the resilience and safety of the European CCP sector and aims to identify possible vulnerabilities

In the scope of the stress tests ESMA, in cooperation with NCAs and the ESRB, will test the resilience of European CCPs by exposing them to adverse market scenarios. ESMA’s stress test focuses on the counterparty credit risk that CCPs would face as a result of multiple clearing member (CM) defaults and simultaneous market price shocks.

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