European Commission
Capital Markets Union - European Commission publishes toolkit of indicators for monitoring progress - 9 June 2021
The European Commission has published a staff working document containing a toolkit of indicators that it will use for monitoring progress on the development of the Capital Markets Union (CMU).
The indicators are grouped under the headings of the three CMU objectives: (i) making finance more accessible; (ii) encouraging long-term saving and investment by individuals; and (iii) integrating national capital markets into a single market. The document provides a description of each indicator and details of the data sources.
The Commission intends to revise the toolkit annually.
Commission Staff Working Document: Monitoring progress towards a Capital Markets Union: a toolkit of indicators (SWD(2021) 544 final)
Press release (See item under ‘Capital Markets Union: Commission publishes list of indicators to monitor progress and track developments in the EU’s capital markets’
European Securities and Markets Authority
CCPs - ESMA launches fourth EU-wide stress test - 7 June 2021
The European Securities and Markets Authority (ESMA) has published the methodological framework (ESMA91-372-1367) for its fourth EU-wide stress test exercise for central counterparties (CCPs). The document explains the design of the new stress test exercise, including its scope, methodology, expected deliverables and the implementation plan. The exercise will cover the 13 EU-authorised CCPs and the two UK CCPs classified as Tier 2 third country CCPs and will encompass:
- credit stress (assessing the ability to absorb losses under a combination of market price shocks and member default scenarios);
- concentration risk (assessing the impact of liquidation costs derived from concentrated positions);
- reverse credit stress (increasing the number of defaulting entities and level of shocks and liquidation costs to identify the point at which CCPs’ resources are exhausted); and
- operational risk, which, for the first time, will assess the importance of shared service providers in the clearing industry and interconnections of CCPs.
The framework includes a new adverse scenario, approved by the European Systemic Risk Board. Publication of the final report and results is scheduled for the second half of 2022.
Framework for the 2021 ESMA Stress Test Exercise for Central Counterparties (ESMA91-372-1367)
Press release
