In response to a Bank of England consultation on stress testing of central counterparty clearinghouses, ISDA and FIA urged global regulatory coordination.
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The CFTC Office of Inspector General ("OIG") alleged that the CFTC's stress-testing capabilities for testing margin models associated with uncleared swaps have been undermined by "a failure of leadership, poor decision-making, and territoriality" in the Risk Surveillance Branch of the Division of Clearing and Risk. The report by the OIG resulted from allegations of mismanagement conveyed to it "by multiple CFTC whistleblowers." The allegations, which appear in the OIG's Semiannual Report issued on December 14, 2018, and which refer to a report by the same office issued earlier in the year
CFTC Chair J. Christopher Giancarlo encouraged (i) reforming the rules recently adopted for regulating swap execution facilities, and (ii) engaging in collaborative efforts with other regulators to improve the stress testing of central counterparties.
The CFTC released a staff report detailing the results of an evaluation of settlement liquidity at three major clearinghouses.
The Office of Financial Research academics analyzed the effects of "procyclical" central counterparty margin requirements.