Fed, CFTC officials back standard stress tests for CCPs
CCPs should be subject to standardised stress testing to help determine loss absorbency provisions, regulators tell IIF conference
Two senior US regulators – one from the Federal Reserve Board and the other from the Commodity Futures Trading Commission (CFTC) – have called for central counterparties (CCPs) to be subject to standardised, regulator-set stress tests.
Speaking today at the Institute of International Finance's annual membership meeting in Washington, DC, the Fed's Daniel Tarullo said stress testing of CCPs was "a pretty important thing to do."
Tarullo described central clearing of over-the-counter derivatives as
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