The European Association of CCP Clearing Houses (EACH) released a statement on the 8th September informing the successful results of their Fire Drill Tests in Business Continuity Planning (BCP) mode, conducted across 16 European CCPs during the second quarter of 2020.
Fire Drill Tests usually test the operational readiness of the CCP’s staff, procedures, IT Systems and clearing members throughout the different layers of the default waterfall. The unusual circumstances provided by the COVID-19 represented an additional challenge that CCPs have successfully met, as the default management structure has been tested with some or all of the CCP and clearing members staff working remotely.
The positive results of the Fire Drill Tests in BCP mode and the ESMA EU-CCP Stress Tests further explained in our previous regulatory update, provide reassurance in the resilience of CCPs despite the increased market volatility and operational risk.
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