Regulatory Alerts2023-07-31
FMI Standards: Legal Basis, Governance, Risk Management, Credit Risk, Collateral, and Margin
The Reserve Bank of New Zealand and the Financial Markets Authority jointly issued these standards to regulate designated financial market infrastructure operators under the Financial Market Infrastructures Act 2021. The regulations mandate that operators maintain legally enforceable rules, robust governance structures, and comprehensive risk management frameworks covering legal, credit, liquidity, and operational risks. Additionally, the standards require strict management of credit exposures through sufficient financial resources, conservative collateral haircuts, and rigorous stress testing for central counterparties.
Share