Regulatory Alerts2023-07-31
FMI Standard 19: Tiered participation arrangements
The Reserve Bank of New Zealand and the Financial Markets Authority jointly issued FMI Standard 19 to regulate designated financial market infrastructure operators. The standard requires operators to identify, monitor, and manage material risks arising from tiered participation arrangements where indirect participants rely on direct participants. Operators must ensure their rules allow for gathering information on indirect participation, identify significant dependencies and large-volume indirect participants, and conduct annual risk reviews to mitigate identified threats.
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