The Changing Architecture of Financial Market Infrastructures
Financial Market Infrastructures (FMIs) are the backbone of post-trade clearing and settlement of financial transactions – they are essential for the stability of the financial system, and their safety and soundness needs to be ensured at all times.
However, regulators, overseers, and standard setting bodies are often challenged in keeping pace with technological developments and innovations such as the advent of blockchain and DLT.
These innovations in particular are greatly expanding the feasibility set of how FMIs can operate, and in this paper we propose a flexible, general framework that would allow overseers to assess, implement, and realise the benefits of novel operational FMI arrangements.