Regulatory Alerts2023-07-31
FMI Standard 20: FMI Links
The Reserve Bank of New Zealand and the Financial Markets Authority jointly issued FMI Standard 20 to regulate interconnections between designated Financial Market Infrastructures. The standard requires operators of payment systems, settlement systems, central securities depositories, and central counterparties to identify, monitor, and manage risks arising from links with other FMIs. Specific provisions mandate robust legal bases, collateral coverage for credit extensions, and measures to prevent risk spill-over effects within the financial system.
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