The CCP.A participated in the EU-wide Firedrill conducted by the ESMA
ESMA conducted an EU-wide Firedrill on the 13th of November 2023. This exercise entailed over 30 CCPs simultaneously simulating their default management processes. It was jointly coordinated by the ESMA, in cooperation with EU and non-EU authorities, CCPs, and industry associations.
As part of the Firedrill, the CCP.A (the Austrian Central Counterparty) and its clearing members had the opportunity to test the default management processes for the annual insolvency test. The Firedrill aimed to simulate the default of one of the five largest clearing participants across Europe and to test the default management processes of the participating CCPs. In addition to the technical processes, communication with external and internal stakeholders (stock exchange, supervisory authorities) was also successfully tested. During the test, the portfolio of the defaulting participant was fully liquidated, the collateral provided, and the default management processes of the CCP.A proved to be appropriate. Thus, the insolvency test was successfully completed by the CCP.A and all processes in place have proven sound, secure, and reliable.
Source: CCP.A
