BoE publishes 2025 CCP stress test results

The Bank of England (BoE) has published its report on the results of its stress test of central counterparties (CCPs). The BoE conducts regular stress tests of UK CCPs to assess their financial resilience and identify potential areas of risk, using a market stress scenario designed by the BoE to replicate an extreme, but plausible, hypothetical scenario including Bank-specified shocks to market prices and rates across asset classes and products. The results found that UK CCPs have adequate pre-funded resources to cover a severe stress scenario which includes the default of the two members whose default causes the greatest depletion of mutualised resources. This year, the stress test included an additional exploratory analysis of resilience against a larger set of extreme but plausible scenarios, beyond the core credit stress test. The BoE confirmed that this analysis gave it confidence that the CCP resources are sized appropriately. It also confirmed that there will be no public CCP stress test next year, so the next public stress test will be in 2027.

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