Regulatory Alerts2024-10-17
Guidance Note on Designation of Financial Market Infrastructures under the Financial Market Infrastructures Act 2021
The Reserve Bank of New Zealand and the Financial Markets Authority issued this guidance to explain the designation process for Financial Market Infrastructures under the Financial Market Infrastructures Act 2021. The document outlines two pathways for designation: regulator-initiated designation for systemically important entities and operator-led applications seeking legal protections for settlement finality and netting. It details the specific criteria, including systemic importance assessments, operational capabilities, and financial resources, that regulators consider when recommending designation to ensure financial system stability.
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