On 9 July 2024, the European Securities and Markets Authority (ESMA) published the results of its fifth stress test exercise for central counterparties (CCPs).

Whilst the stress test confirmed the overall resilience of the EU clearing landscape it also found that some gaps persist in the coverage of concentration risk across CCPs and across asset classes, particularly for commodity derivative positions. New in this year’s stress test was the exploratory analysis of climate risk. ESMA found that CCPs’ exposures depend on whether the markets they clear are directly exposed to transition risk, such as commodities and energy. The majority of sampled CCPs have also started to integrate climate risk into their stress testing framework. The analysis also found that in terms of CCPs’ and clearing members’ resources, the total amount of required margin increased by 56% compared to the last stress test.