On Sep. 3, ICE CEU issued circular on default management test.
ICE CEU announced that annual default management test will take place Nov. 3, 2025.
Annual Test
Will conduct default management test based on hypothetical event of default of an F&O clearing member, participation in annual test is mandatory for clearing members.
Auction terms for F&O default auctions set out the minimum bid requirements and consequences for clearing members who do not comply with their obligations.
As usual, oversight and attendance from UK BoE and other regulators anticipated.
ICE CEU will contact clearing members to support coordination of management test.
Webinars will be provided in lead up to test to help users familiarize themselves with the default management system (DMS), information on these to be issued shortly.
After each test, ICE CEU may communicate the results of each auction to participants of the relevant auction, the Product Risk Committee, relevant regulatory authorities.
ICE CEU also encourages customers of F&O clearing members to participate in the default management test, to allow them to familiarize themselves with the default management processes, including porting and the supporting technology.
Effectiveness
The default management test is scheduled to take place on Nov. 3, 2025.
