CPMI-IOSCO Begins Review of CCP Stress Testing

The Committee on Payments and Market Infrastructures ("CPMI") and IOSCO are reviewing central counterparty ("CCP") stress testing.

The principles and responsibilities outlined in The Principles for Financial Market Infrastructures Report, published by the CPMI and IOSCO in 2012, require CCPs to carry out stress testing to determine the financial resources needed to manage credit and liquidity risk. The tests include a wide range of stress scenarios covering "extreme but plausible market conditions."

See: IOSCO Press Release.