LCH proposes CCP stress test standards

摘要

The lack of standardised stress testing across central clearing houses makes it difficult for clearing members to assess the relative resilience of central counterparty clearing firms and assess aggregate risk exposure across CCPs, said LCH.Clearnet, which is calling for a harmonised approach to such tests. In a white paper released last week, the largest derivatives clearing firm, with more than USS300trn of notional outstanding in cleared interest rate swaps through its SwapClear platform, warned that a lack of consistency creates an uneven playing field that could trigger a race to the bottom in risk management practices.