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
FCA and PRA Host Fourth Meeting of Climate Financial Risk ForumRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
