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Regulation > Consultation Paper 08/24 Stress and scenario testing December 2008

12th April 2009

The FSA wants to see more stress and scenario testing in firms. Senior management should be involved. Previous assumptions have been too relaxed. Stress testing should be in detail with the mitigating actions rehearsed. Reverse stress testing is introduced as a method of identifying critical events. The FSA is not going to tell you how to do this, it's up to you. However firms can expect greater challenge on the assumptions made.

Regulation > Policy statement 09/20 Stress testing and scenario testing December 2009

18th December 2009

What's stress testing about? The regulator is imposing a stress testing regime on firms because the risk management techniques employed before the crisis did not accurately reflect what could happen. In particular risk models allowed firms (and regulators) to ignore tail-risks. As a result many firms have found themselves badly exposed in the crisis. In order to mitigate against this happening again the FSA is making stress testing and reverse stress testing mandatory. Let's answer a few questions.

OTC and exchange traded

25th March 2017

Some derivatives like interest rate and currency swaps are traded directly between two parties. When they deal, they agree the amount, price, settlement date and maturity date of the transaction. Traditionally the details of these transactions are only known by the parties involved (but now regulatory reporting applies).

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