However, the determination of appropriate funding arrangements raises some complex issues. On the one hand, there is a burden of proof on CCPs that the available funding credibly ensures the continuity of their critical functions, including in the event of very severe market conditions going beyond the scenarios covered under CCP stresstesting.
Market concern also heightened for fiscal conditions of larger countries such as Italy and Spain, the third and fourth largest economies in terms of GDP in the euro area. Italy faced a tough situation as the yield of Italian government bonds once surged to above 7 percent at around the end of last year.