Closeout procedures enable central counterparties (CCPs) to respond to events that challenge the continuity of their normal operations, most frequently triggered by the default of one or more clearing members. The procedures ensure the regularity of the settlement process through the prudent and...

In the new market and regulatory environment of the post-crisis, central counterparties need to find the right balance between ensuring the safety of their business and avoiding creating additional distress in the market in the form of procyclical margin calls. However, balancing these...

Stress testing has become an increasingly important mechanism to support a variety of financial stability objectives. Stress tests can be used to test the individual resilience of a single entity or to assess the system-wide vulnerabilities of a network. This article examines the role of...