UK: Treasury consultation - the failure of systemic digital settlement asset (including stablecoin) firms

Her Majesty's Treasury has published for consultation proposals to amend the Financial Market Infrastructure Special Administration Regime to deal with the failure of systemic digital settlement asset (including stablecoin) firms: see here.

UK: Bank of England annual report on the supervision of financial market infrastructures

The UK's central bank - the Bank of England - has published a report in respect of its supervision of financial market infrastructures (e.g., central counterparties, securities settlement system, and payment systems). The report explains how the bank exercised its responsibilities over the past year and also identifies the principal priorities for 2016/17. A copy of the report is available here (pdf).

The report contains the following diagram that illustrates well the relationships and linkages between central counterparties and banks:

UK: the supervision of financial market infrastructure

The Bank of England has published a document in which it sets out its approach to the supervision of financial market infrastructure (e.g., securities settlement systems and central counterparties) under the new regulatory framework being introduced next spring: see here (pdf). In addition, a draft memorandum of understanding has been published which sets out the framework the Bank, the Financial Conduct Authority and the Prudential Regulation Authority will follow in their cooperation over markets and market infrastructure: see here (pdf).

UK: financial sector resolution consultation - draft legislation published

Earlier this year HM Treasury published a consultation paper titled Financial sector resolution: broadening the regime: see here (pdf). This contained proposals regarding the mechanisms available to deal with the failure of systematically important investment firms, insurers, central counterparties and non-central counterparty financial market infrastructures. Since publication of the paper, draft legislation and explanatory notes have been published: see, respectively, here (pdf) and here (pdf).

UK: Treasury consults on financial sector resolution proposals

HM Treasury has published a consultation paper titled Financial sector resolution: broadening the regime: see here (pdf). The paper sets out the Government's proposals regarding the mechanisms available to deal with the failure of systematically important investment firms, insurers, central counterparties and non-central counterparty financial market infrastructures.

The CPSS and IOSCO Principles for Financial Market Infrastructures

The Committee on Payment and Settlement Systems and the International Organization of Securities Commissions have published a report titled Principles for Financial Market Infrastructures: see here (pdf). The Principles, which include a section on governance, replace three existing sets of international standards as set out in the Core Principles for Systemically Important Payment Systems (CPSS, 2001), the Recommendations for Securities Settlement Systems (CPSS-IOSCO, 2001) and the Recommendations for Central Counterparties (CPSS-IOSCO, 2004).