Process and procedures to test scenarios of liquidity stress
Article 5
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: (a) risks covered in the liquidity stress testing; (b) parameters considered, their calibration under stress, and the stress scenarios and time horizons used in the liquidity stress testing; (c) historical data and assumptions, including any expert judgments, considered by the issuer in the calibration of the parameters referred to in point (b); (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.