FSB Publishes Questionnaire on Access to FMIs for Firms in Resolution
FSB published a questionnaire template to gather information about continuity of access to financial market infrastructures (FMIs) for firms in resolution. The questionnaire covers general information on the FMI and its legal structure, information on the rulebook or contractual provisions regarding termination, the phase prior to resolution (during signs of distress at the FMI participant), the resolution phase, and the arrangements and operational processes to facilitate continued access in resolution. FSB encourages FMIs to consider the indicative timeline for providing a standardized set of responses.
All FMIs are encouraged to complete the questionnaire and to publish their responses, or to make them available in other ways to FMI service users and resolution authorities to inform their resolution planning. The questionnaire should help authorities and firms to understand and anticipate, to an extent, the potential action that FMIs could take in a resolution or in the lead-up to resolution and to understand how FMIs can support resolution actions, where necessary and possible. The information collected should serve as a basis for, and supplement, an appropriate level of direct engagement between firms and/or resolution authorities and FMIs regarding actions in recovery and resolution of firms, or any other resolution planning requirements for firms in any jurisdiction.
FSB will hold a webinar for stakeholders on September 23 to explain the questionnaire and answer any questions. Finalization of the questionnaire responses, submission to authorities and FMI participants, and publication of the responses or "presumptive path" summaries is expected to take place in November or December 2020. This questionnaire is a living document. The experience with the use of the questionnaire will be evaluated after the first iteration, in the course of 2021. FMIs and banks, as well as other stakeholders, will then have the opportunity to provide feedback and suggestions on the questionnaire and the process.
The questionnaire follows from a workshop held in May 2019 with stakeholders about the implementation of the FSB guidance on continuity of access to FMIs for a firm in resolution. The guidance sets out arrangements and safeguards to facilitate continued access to critical clearing, payment, settlement, custody, and other services provided by FMIs in cases where firms need to be resolved. In the second half of 2019, the Cross-border Crisis Management Working Group of FSB for banks, in consultation with FMIs and banks, developed a draft questionnaire and consulted relevant FMI oversight authorities with the assistance of CPMI-IOSCO Secretariats. FSB had then finalized the questionnaire.
Related Links
Keywords: International, Banking, Securities, FMI, Resolution Framework, Resolution Planning, Questionnaire, Continuity of Access, Basel, FSB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
OSFI Initiates Consultation on Technology Risks in Financial SectorRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.