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EU Said to Consider Releasing Stress-Test Data When Global Markets Closed

By 23 Jun, 2011June 6th, 2017News

Bloomberg News

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.

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