In June 2021, the Bank of England (BoE) published a discussion paper on supervisory stress testing of central counterparties (CCPs). ISDA and the Futures Industry Association (FIA) responded to the consultation.
Overall, the associations agree with the presented approach. The points made in the consultation response include:
- Given the huge effort to run supervisory stress tests (SSTs), the associations propose for global regulators to join forces and run joint SSTs;
- The associations welcome the inclusion of operational scenarios, especially stressing of porting assumptions and propose to also include non-default losses as a result of defaults;
- The associations propose to not only use plausible scenarios, but also include scenarios that probe recovery and resolution situations;
- The associations propose to analyze contagion risk, for instance by linking the losses at CCPs to the available resourced of clearing members;
- The associations propose additional disclosure, including some disclosure specific to each clearing member.
Documents (1) for ISDA and FIA Respond to BoE’s Supervisory Stress Testing of CCPs Consultation
Latest
ISDA DTF Tokyo SOM Opening Remarks
ISDA Derivatives Trading Forum Tokyo, October 23, 2026 Opening Remarks Scott O’Malia ISDA Chief Executive Good afternoon, and welcome to the ISDA Tokyo Derivatives Trading Forum. Thanks for joining us today, and a big thank you to our sponsors,...
Transforming Asset Management: SOM Remarks
Transforming Asset Management October 23, 2026 Welcoming Remarks Scott O’Malia, ISDA CEO Good morning, and welcome to ISDA’s Transforming Asset Management event. It’s great to be back in Tokyo for Japan Weeks. Now in its fourth year, Japan Weeks...
Response on Dividend Stripping
On October 14, ISDA, the Association for Financial Markets in Europe (AFME) and the International Securities Lending Association (ISLA) submitted a joint response to the Dutch Ministry of Finance on its proposed measures on dividend stripping. While supporting the policy...
ISDA Launches DRR Tracer Agent
ISDA has launched an artificial intelligence (AI) agent for its Digital Regulatory Reporting (DRR) solution that will bring greater transparency to users by tracing the rules and decisions that have guided the development of the DRR. The ISDA DRR Tracer...