{"id":1687411,"date":"2022-10-13T02:50:52","date_gmt":"2022-10-13T06:50:52","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1687411"},"modified":"2022-10-13T02:50:59","modified_gmt":"2022-10-13T06:50:59","slug":"bank-of-england-says-stress-test-shows-uk-counterparties-resilient","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bank-of-england-says-stress-test-shows-uk-counterparties-resilient\/","title":{"rendered":"Bank of England says stress test shows UK counterparties \u2018resilient\u2019"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbank-of-england-says-stress-test-shows-uk-counterparties-resilient%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1687411&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>LONDON (Reuters) \u2013     The Bank of England said on Thursday that the central counterparties (CCPs) in Britain\u2019s financial system were \u201cresilient\u201d after publishing the conclusions of its first public stress test for ICE Clear Europe, LCH and LME Clear.<\/p>\n<p>Central counterparties operating in London are a key part of the global financial system\u2019s plumbing, due to their role in helping to clear trades between major financial institutions.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>\u201cWhile the stress test was exploratory, with no pass-fail assessments, the results are evidence of the overall resilience of the UK CCPs,\u201d BoE Deputy Governor Jon Cunliffe said in a statement.<\/p>\n<p>The BoE said it checked whether the CCPs were resilient to a market stress scenario and to the simultaneous default of the two largest clearing member groups.<\/p>\n<p>\u201cWhile results vary across CCPs, no CCP experienced full depletion of prefunded financial resources or a negative liquidity balance,\u201d the BoE said.<\/p>\n<p>The exercise started in October 2021 and was designed to be as severe as the worst historical market stress scenario experienced by each CCP up to that point.<\/p>\n<p>Recent weeks have witnessed record falls in some British government bond prices, and forced the BoE to stabilise the market due to the risk of a fire sale by liability-driven investment (LDI) funds used by the pensions industry.<\/p>\n<p>\u201cWe will engage these CCPs on our findings, which will help the Bank target its supervision and inform CCPs\u2019 approach to risk management,\u201d Cunliffe said.<\/p>\n<p> (Reporting by David Milliken; Editing by Kate Holton and John Stonestreet)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/bank-of-england-says\/attachment\/file-photo-people-walk-outside-the-bank-of-england-in-3\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9C09G-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9C09G-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON (Reuters) \u2013 The Bank of England said on Thursday that the central counterparties (CCPs) in Britain\u2019s financial system were \u201cresilient\u201d after publishing the conclusions of its first public stress<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1687411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1687411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1687411"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1687411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1687411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1687411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1687411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}