Laura WilesThe BoE has launched a consultation on proposals to create a set of Fundamental Rules for UK Financial Market Infrastructures (FMIs). It has also published its approach to FMI supervision in practice.
In publishing both, the BoE aims to increase transparency by clearly setting out its expectations of FMIs it supervises, including central counterparties (CCPs), central securities depositories (CSDs), recognised payment systems operators (RPSOs) and specified service providers (SSPs).
The Fundamental Rules seek to increase the effectiveness of supervision of these parts of the financial system, and are the first use of the BoE’s new rulemaking powers for CCPs and CSDs. The draft Rules set out the BoE’s desired outcomes in areas like governance, financial and operational resilience, and consideration of FMIs’ impacts on the broader financial system. They also propose to reinforce the regulator’s commitment to international standards of FMI regulation, and support its new secondary objective to facilitate innovation in FMI services.
The consultation closes on 19 February 2025. The BoE also expects to engage with stakeholders on the supervisory approach document in Q1 2025.