Regulatory Alerts2023-07-31
FMI Standard 13: Participant Default Rules and Procedures
The Reserve Bank of New Zealand and the Financial Markets Authority jointly issued this standard to regulate designated financial market infrastructures under the Financial Market Infrastructures Act 2021. It requires operators to maintain effective rules and procedures that ensure timely action during participant defaults to maintain operational continuity and manage credit or liquidity risks. Operators must also publicly disclose key default procedures, involve stakeholders in testing, and conduct annual reviews to ensure the practicality and effectiveness of these measures.
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