ICE CEU will conduct default management test on a hypothetical event of default of a clearing member, with participation in annual test mandatory for all 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.
Failure by any Clearing Members to participate in, or for inadequate participation in, these Default Management Tests may result in some disciplinary action being taken.
Auction Terms for F&O Default Auctions set out, consequences for Clearing Members who do not comply with their obligations as agreed to under relevant Auction Terms.
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 test lead up so users familiarize themselves with default management system (DMS), and information on this will be issued in due course.
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 encourages customers of clearing members to participate in the management test, to allow them to familiarize themselves with the default management processes.
Effectiveness
The default management test 2026 is now scheduled to take place on Oct. 26, 2026.
