Adds details

By David Milliken

LONDON, Nov 29 (Reuters) - The Bank of England said on Friday that a stress test of central counterparties (CCPs)- businesses that form a key part of the plumbing of financial markets - did find some vulnerabilities but overall showed resilience.

The stress test focused on the credit resilience of the clearing services provided by ICE Clear Europe ICE.N, LCH - part of LSEG LSEG.L, and LME Clear, which is owned by Hong Kong Exchanges and Clearing Ltd 0388.HK.

"The stress test results do not suggest that this is a cause for concern, but we continue to monitor CCPs resources through ongoing data collection and supervision," Bank of England Deputy Governor Sarah Breeden said.

The BoE said central counterparties, which are involved in the clearing and settlement of financial trades, were tested against a scenario that involved market stress similar to the largest recorded plus the default of two of the biggest CCPs.

Some CCPs were found to be holding fewer financial resources than at the time of their last stress test in 2022 , which took place after a period of market turmoil, the BoE said.

"When we extend the stress test to include the cost of liquidating highly concentrated positions and more conservative assumptions, we identify some potential areas of vulnerability, which we will explore with CCPs as part of our ongoing supervision," Breeden said.

In July, the BoE launched a consultation for new post-Brexit rules for central counterparties and other similar businesses.

(Reporting by David Milliken; Editing by Kate Holton)

((david.milliken@thomsonreuters.com; +44 20 7513 4034;))