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What Is the Role of Stress Testing in a CCP’s Risk Management Framework?

Stress testing involves subjecting the CCP's financial resources and risk models to hypothetical extreme but plausible market scenarios, such as sudden, large price drops or liquidity freezes. This is done to assess if the CCP's default waterfall and margin levels are sufficient to withstand severe market stress, ensuring the resilience of the clearing system.

How Does the Default Waterfall of a CCP Protect Its Non-Defaulting Members?
How Is a “Liquidity Stress Test” Relevant to a CCP’s Margin System?
How Can Decentralized Finance (DeFi) Platforms Be Made More Resilient to State-Sponsored Threats?
How Does the “Stress Test” Factor into Portfolio Margin Calculations?