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Europe to stress test clearing houses for liquidity risk

Esma's latest round of stress testing for clearing houses will include a crucial, previously excluded component

Wednesday, 1 February 2017 at 15:59

Europe to stress test clearing houses for liquidity risk

Clearing houses, the vital pieces of market infrastructure that stand in the middle of derivatives trades, are to be subjected to a tougher round of stress testing by European regulators.

The European Markets and Securities Authority said in a February 1 statement that the second continent-wide round of stress testing will include liquidity risk. The results of the stress test are due in the final quarter of 2017.