ESMA and EU CCPs participate in a Global fire-drill
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is coordinating the participation of the majority of EU CCPs in a global fire-drill during the week starting 13 November 2023.
The exercise taking place this week entails over 30 CCPs simultaneously running a simulation of their default management processes. It is jointly coordinated by ESMA, in cooperation with EU and non-EU authorities, CCPs, and industry associations.
During the next days, the participating CCPs will simulate the default of a hypothetical common defaulting clearing member and run their own default management processes. The fact that they are executing this test at the same time may help identify potential operational bottlenecks in the procedures, such as the fact that they may solicit non-defaulting clearing members at the same time.
In addition, the exercise is expected to bring benefits to financial stability by providing a chance to share default management best practices among CCPs.
Further information:
Solveig Kleiveland
Communications Team Leader
@ Email: press@esma.europa.eu