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Europe to stress test clearing houses for liquidity risk

Esma's latest round of stress testing for clearing houses will include a crucial, previously excluded component

Europe to stress test clearing houses for liquidity risk

Clearing houses, the vital pieces of market infrastructure that stand in the middle of derivatives trades, are to be subjected to a tougher round of stress testing by European regulators.

The European Markets and Securities Authority said in a February 1 statement that the second continent-wide round of stress testing will include liquidity risk. The results of the stress test are due in the final quarter of 2017.

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