LME most battered in BoE’s stress test

Clearing house close to depleting default fund under toughest credit stress scenario

LME Clear performed the worst in the Bank of England’s credit and concentration stress test, with its base metals clearing service almost wiping out its entire default fund.

In its first public stress test of UK central counterparties (CCPs), the BoE girded LCH, Ice Clear Europe and LME to assess their resilience under a severe but plausible market stress scenario. For the credit and concentration test, this consisted of shocks to the prices of a wide range of cleared products, plus a Cover 2

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here