The 16 authorised European central clearing houses (CCPs) - including the three UK CCPs - demonstrated their resilience to extreme market shocks, according to the results of the European Securities and Markets Authority’s (ESMA) third stress test, published on Monday 13 July.
As in the second exercise (see EUROPE B11953A9), the stress test focused on assessing credit and liquidity risks, but this time also focused on concentration risk, in order to assess the losses arising from the costs...