Article 5
Process and procedures to test scenarios of liquidity stress
1. Issuers of asset-referenced tokens or e-money tokens shall include in their liquidity management policy the process and procedures to test scenarios of liquidity stress and the following information concerning each stress test:
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(a) |
risks covered in the liquidity stress testing; |
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(b) |
parameters considered, their calibration under stress, and the stress scenarios and time horizons used in the liquidity stress testing; |
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(c) |
historical data and assumptions, including any expert judgments, considered by the issuer in the calibration of the parameters referred to in point (b); |
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(d) |
the outcome of the liquidity stress testing and any remedies taken. |
2. The liquidity stress testing shall include a reverse stress test element to assess the limit of resilience of the liquidity profile of each reserve of assets.