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
Keywords: International, Banking, Securities, FMI, Resolution, Resolution Planning, FSB
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