On 25 April 2025, the Bank of England (BoE) published the key elements of its 2025 stress test of UK central counterparties (CCPs).
Testing
The 2025 CCP stress test will focus on assessing the resilience of UK CCPs to the default of two or more of its members during a severe market stress. This includes a core ‘Credit Stress Test’ and additional reverse stress testing and sensitivity testing that explores how the results change under increasingly severe assumptions. However, this year’s stress test will not include a full Liquidity Stress Test, but the BoE will explore liquidity risks in a more qualitative manner with firms and assess how risks have evolved since last tested.
Results
The stress test covers the clearing services of all three UK authorised CCPs. CCPs are required to submit the relevant data for the stress test to the BoE using data templates and instructions provided privately to them. The BoE will publish the results report in Q4 2025.