Regulatory Alerts2022-03-29
Summary of Submissions and Final Policy Proposals on FMI Oversight
The Reserve Bank of New Zealand issued final policy proposals to enhance the regulatory oversight of systemically important financial market infrastructures following a two-stage consultation process. The document addresses critical market failures such as negative externalities, high concentration, and governance issues by proposing a mandatory designation regime with expanded powers for risk management, crisis management, and information gathering. These measures aim to ensure the soundness and efficiency of FMIs to maintain financial stability and prevent systemic disruptions within the New Zealand economy.
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