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Systemic Risk Exposures A 10by10by10

This is a proposal to consider the collection and analysis of stresses among systemic financial institutions. The “10-by-10-by-10” labeling suggests the general approach. A regulator would collect and analyze information concerning the exposures of N significant entities to M defined stress tests. For each stress, an entity would report its gain or loss, in total, and with respect to its contractual positions with each of the K entities for which the exposure, for that scenario, is among the K greatest in magnitude relative to all counterparties. Those counterparties would be identified, stress by stress.