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
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
