BoE publishes 2025 CCP Global Default Simulation findings

BoE – alongside a cohort of other CCP authorities – has published findings from the 2025 CCP Global Default Simulation exercise.

The exercise demonstrated that CCPs and market participants could execute default management processes simultaneously across multiple CCPs. However, there were a number of critical pressure points identified:

• Resource and capacity restraints due to competing priorities across CCPs and limited availability of specialist resources (such as traders for hedging);
• Shortage of experienced personnel, with specialists often required across multiple CCPs at once;
• Lack of standardisation across processes and communication conventions, increasing operational complexity and the risk of errors and inefficiencies;
• Communication inefficiencies – pre-exercise communication was generally strong, but during the exercise, participants called for fast feedback and more consistent formats;
• Outdated or inconsistent tools, with continued reliance on email-based processes; and
• Inconsistent file formats.