On Tuesday 9 July, the European Securities and Markets Authority ('ESMA') published the results of a fifthstresstest of European Union central counterparties ('CCPs') and Tier 2 central counterparties ('TC-CCP'), i.e. non-EU members with implications for EU financial markets.
The study assessed the credit, concentration and liquidity risks to which these financial guardians are exposed, including for the first time an ‘exploratory’ analysis of their exposure to climate risk. It thus...