CCP stress-test rifts emerge as review gets underway
Calls for more transparency surrounding stress-testing methodologies and practices have led to CPMI-Iosco launching a policy working group to investigate whether to introduce standardisation, but clearing houses argue CCPs know their products and markets, and should be allowed to design their own tests
After grumbling for months about flaws in the way clearing houses set their default resources – through stress tests subject to high-level principles – market participants finally persuaded regulators to roll up their sleeves and take a look.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (Iosco) established a working group
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