A central counterparty must—
| (a) | test and review its default procedures to ensure they are both practical and effective; |
| (b) | perform simulation exercises as part of the testing of its default procedures; |
| (c) | following testing of its default procedures, identify any uncertainties and appropriately adapt its procedures to mitigate such uncertainty; |
| (d) | through conducting simulation exercises, verify that all clearing members, where appropriate, clients and other relevant parties including, interoperable central counterparties and any related service providers, are informed and know the procedures involved in a default scenario. |
