The European Securities and Markets Authority (ESMA) has recently contacted the European Banking Authority (EBA), an agency carrying out upcoming bank stress-test results. The reason for is that they are appealing to the London based organization to publish the results while markets are shut.
To pass the tests, ninety-one banks will be expected to maintain a Core Tier 1 capital ratio of at least 5 percent under the stress-test scenarios. Last year, the stress-test results were published on 23rd July while U.S. markets were still open. If it opts to listen to the ESMA, but release the data on a weeknight, the EBA has a two-hour window to coordinate publication. U.S. markets close at 9 p.m. U.K. time and the New Zealand exchange opens two hours later.
GreySpark maintains that like any market-sensitive announcement it should be done when the markets are closed. Releasing such results when New York, London, Hong Kong and Tokyo are closed is good practice.