Search Results for keywords:"stress testing scenarios"

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Search Results: keywords:"stress testing scenarios"

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  • 2025-03768 — Orders: Reporting by Regulated Entities of Stress Testing Results as of December 31, 2024; Summary Instructions and Guidance
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    Type:Rule
    Citation:90 FR 11587
    Reading Time:about 3 minutes

    The Federal Housing Finance Agency (FHFA) has issued Orders for stress test reporting by regulated entities, effective March 4, 2025. These Orders require financial companies with over $250 billion in assets to report their stress test results, ensuring they have enough capital to withstand severe economic conditions. The guidance includes detailed instructions on how the reports should be formatted and submitted. The Orders and instructions can be accessed online through the FHFA’s website.

    Simple Explanation

    The Federal Housing Finance Agency wants to make sure big financial companies can handle tough times, so they have to share special test results to prove they have enough money saved up just in case. These companies must follow the rules about how to show their results, and the details are explained online.

  • 2020-29217 — Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Accelerated Approval of Proposed Rule Change Concerning the Implementation of New Sufficiency Scenarios in the Options Clearing Corporation's Stress Testing Inventory
    Type:Notice
    Citation:86 FR 659
    Reading Time:about 15 minutes

    The Securities and Exchange Commission has approved a proposed rule change from the Options Clearing Corporation (OCC) to enhance its stress testing scenarios. The OCC aims to elevate four existing Informational Scenarios to Sufficiency Scenarios, which will more rigorously test whether it has enough financial resources to cover potential losses during extreme market conditions. This change comes in response to market events observed in March 2020, including extreme price changes, and aims to ensure OCC can manage risks and maintain a stable financial environment in the options market. The Commission granted accelerated approval for these changes to ensure timely implementation and enhanced risk management capabilities.

    Simple Explanation

    The Options Clearing Corporation (OCC) has decided to make their tests tougher to make sure they have enough money to handle big surprises in the market, like big price swings. The Securities and Exchange Commission quickly said "yes" to this plan so that the OCC can keep the options market safe and sound.