The European Securities and Markets Authority (ESMA) is coordinating the participation of the majority of EU central counterparties (CCP) in a global fire-drill.
The event will commence this week, starting from today (13 November 2023).
It will involve more than 30 CCPs, which will simultaneously run a simulation of a default of a hypothetical common defaulting clearing member and, in turn, run their own default management processes.
The exercise aims to bring benefits to financial stability by providing a chance to share default management best practices among CCPs. It also aims to identify potential operational bottlenecks in default management procedures.
Jointly coordinated by ESMA, the fire-drill will run in cooperation with EU and non-EU authorities, CCPs and industry associations.
