FSB Workshop on Continuity of Access to FMIs for Firms in Resolution
FSB published the summary of key themes that were discussed at its workshop on implementation of the FSB guidance on continuity of access to financial market infrastructures (FMIs) for a firm in resolution. The workshop, which was held in Basel in May 2019, provided an opportunity for industry participants to share their views and experiences in implementing the FSB guidance and to discuss ways to support and enhance the implementation work to facilitate continuity of access to FMIs for a firm in resolution.
The FSB guidance sets out arrangements and safeguards to facilitate continuity of access to FMIs for a firm in resolution. These arrangements and safeguards apply at the level of the providers of clearing, payment, securities settlement and/or custody services, at the level of FMI service users, and at the level of the relevant resolution and FMI authorities. FSB has committed to monitoring implementation of the guidance and to consider what further actions could be undertaken to assist authorities and firms in their implementation efforts. Thirty-nine participants from banks, FMI service providers, and industry associations as well as forty-one participants from public authorities attended the workshop. The following are the main themes that were discussed at the workshop:
- Representatives of Novo Banco (Portugal), which was established following the resolution of Banco Espírito Santo in 2014, shared their experiences of seeking continuity of access to FMIs during a resolution.
- Representatives from firms that are FMI service users described how they have identified critical FMI services and how they engage with the providers of FMI services to discuss challenges in resolution planning from their perspective.
- Participants discussed challenges in resolution planning from the perspective of FMIs.
- Participants in the workshop discussed challenges in resolution planning from the perspective of FMI intermediaries that provide clearing, payment, securities settlement, and/or custody services to other firms to facilitate the firms’ direct or indirect access to an FMI.
Additionally, workshop participants discussed possible actions that could be taken, including the following:
- For resolution planning of firms, developing common templates for the collection of certain core information from FMIs by FMI types (payment system, CSD/ICSD, CCP, intermediary service provider)
- FMIs disclosing publicly certain information, including non-binding "presumptive path" summaries of responses to a member experiencing distress or entering into resolution (and entering into default/ termination of a member, to understand the differences)
- Sharing relevant resolution contact information
- Engagement between FMIs and resolution authorities regarding resolution strategies and approaches and regarding the likely communication and information needs during resolution planning as well as in the lead up to, and during, a resolution of a member
Related Links
Keywords: International, Banking, Securities, FMI, Resolution, Resolution Planning, 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
Related Articles
CBUAE Issues Regulation for Low-Risk Specialized Banks
CBUAE has issued a regulation that introduces the licensing and supervision framework for low-risk, specialized banks.
APRA Proposes Guidance to Support Prudential Standard on Remuneration
APRA is consulting on CPG 511—the draft Prudential Practice Guide on remuneration for banks, insurers, and superannuation licensees—with the comment period ending on July 23, 2021.
MAS Announces Grant Scheme to Spur Adoption of Regtech Solutions
MAS announced a new RegTech grant scheme and an enhancement of the Digital Acceleration Grant (DAG) scheme to accelerate technology adoption in the financial sector.
PRA Review Finds Most Banks Compliant with Regulatory Reporting Rules
PRA published a letter that sets out findings from the 2020 Internal Audit Review of the Collections function of a sample of non-systemic banks and building societies.
EIOPA Launches Consultation on Interbank Offered Rate Transitions
EIOPA launched a consultation on the Interbank Offered Rate (IBOR) transitions, in context of the EU Benchmarks Regulation.
EIOPA Seeks Feedback on Approach to Blockchain and Smart Contracts
EIOPA published a discussion paper on uses cases of, and the European approach to, blockchain and smart contracts in the insurance sector.
HKMA Outlines Work Priorities for 2021, Grants License to NH Bank
HKMA granted a banking license to NongHyup Bank (also NH Bank), which is incorporated in the Republic of Korea.
PRA Proposes Options for Regulatory Framework for Non-Systemic Banks
PRA published a discussion paper that explores options for developing a simpler but resilient prudential framework for banks and building societies that are neither systemically important nor internationally active.
ECB Issues Opinion on Proposal for Market Infrastructures Based on DLT
ECB published an opinion on the proposal for a regulation on the pilot regime for market infrastructures based on distributed ledger technology.
EBA Proposes Standards to Determine Risk-Weight for Immovable Property
EBA proposed regulatory technical standards that specify how to identify the appropriate risk-weights and conditions when assessing minimum loss given default (LGD) values for exposures secured by immovable property.
