Regulatory Alerts2022-05-17
A Framework for Identifying Systemically Important Financial Market Infrastructures
The Reserve Bank of New Zealand and the Financial Markets Authority issued this consultation paper to outline a framework for assessing whether Financial Market Infrastructures are systemically important under the Financial Market Infrastructures Act. The Regulator will exercise discretion by holistically evaluating five prescribed factors: size, participant types, nature and scope of activities, concentration of financial risk, and substitutability. This non-prescriptive, case-by-case approach aligns with international best practices to ensure transparency while accounting for the unique characteristics of individual infrastructures.
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