Regulatory Alerts2022-05-17
Framework for Identifying Systemically Important Financial Market Infrastructures
The Reserve Bank of New Zealand and the Financial Markets Authority issued this framework to guide the assessment of whether Financial Market Infrastructures are systemically important under the Financial Market Infrastructures Act. The Regulator must holistically consider five statutory factors: size, participant types, nature and scope of activities, concentration of financial risk, and substitutability. This non-prescriptive approach relies on regulatory discretion and case-by-case judgment rather than fixed thresholds to determine designation and enhanced oversight requirements.
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