Interview: ECB’s Benoît Cœuré on CCP capital and stress testing

"I would be very much in favour of the concept of a Pillar 2 for CCPs", says CPMI chair

Benoît Cœuré, ECB: it’s time to take stock of PFMIs and consider whether this is enough

As increasing volumes of over-the-counter derivatives are submitted for clearing by central counterparties (CCPs), so these entities are experiencing greater scrutiny of their financial resources and risk management practices.

For banks, the period since the 2008 financial crisis has seen a situation emerge in which firms are subjected to tougher Pillar 1 capital requirements, which are supplemented by regular supervisory stress tests. Those stress tests may then help dictate the additional