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EU watchdog to publish first clearing house stress tests on April 29

Published 14/04/2016, 10:55
© Reuters.  EU watchdog to publish first clearing house stress tests on April 29
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LONDON (Reuters) - The results of the first European Union stress test of clearing houses for derivatives will be published on April 29, the bloc's securities watchdog said on Thursday.

Clearing houses or central counterparties like LCH.Clearnet (L:LSE) and Eurex Clearing (DE:DB1Gn) stand between two sides of derivatives trade to ensure its completion even if one side goes bust.

The sector is due to grow as clearing becomes mandatory for swathes of the swaps market to improve transparency.

"These stress tests are a crucial supervisory tool to ensure the sector is safe and resilient to shocks," said Steven Maijoor, chairman of the European Securities and Markets Authority.

The results will be published in an aggregated way after the market close on April 29, ESMA said, meaning there will be no breakdown by individual company.

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