Broadly, the term ‘financial market infrastructure’ (“FMI”) refers to:
- central counterparties (“CCPs”);
- payment systems;
- central securities depositories;
- securities settlement systems; and
- trade repositories.
FMIs contribute to maintaining and promoting financial stability. However, they also concentrate risk and their disorderly failure could have systemically important consequences. This brings into focus the issues of how to determine the systemic significance of an FMI as well as the design of recovery and resolution (“RRP”) regimes for FMIs that are determined to be systemically important.