Uniform EU stress test backed by CCPs and banks

Second Esma test will apply three scenarios to 17 clearing houses, but concerns remain

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Three degress: Esma will apply a trio of scenarios in this year’s test

Market participants are welcoming the addition of standardised scenarios and liquidity risk to European Union clearing house stress tests, with the caveat that the results will need to be read carefully.

The move could help advance a long-running debate about how to test central counterparties (CCPs), which has divided clearing houses, their members and regulators. Supporters of standard stress tests see them as a way to benchmark clearing house resilience, while critics say CCPs are too divers

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