On 6 July 2017, the Financial Stability Board (FSB) published its “Guidance on Continuity of Access to Financial Market Infrastructures (“FMIs”) for a Firm in Resolution”. The guidelines urge providers of critical financial market infrastructure services to “take appropriate steps to consider and plan for the interaction between the resolution regimes of their FMI service users and their own risk management framework”. By clarifying what actions they might take in a resolution scenario, providers help firms and authorities to be better prepared for resolution. The TARGET2 operator has since amended the relevant legal and operational documentation for TARGET2 to take account of the FSB guidance.
On 14 August 2020, the FSB published a common template designed to collect information concerning continuity of access to FMIs for firms in resolution. The idea behind the survey is to streamline the flow of information from FMIs to firms and authorities and reduce the number of inquiries being addressed to FMIs by banks and authorities. The template is designed in the form of a questionnaire to be filled out by all FMIs.
The Eurosystem, in its role as TARGET2 operator, supports the FSB’s initiative. You can view the responses to the questionnaire for TARGET2-Bundesbank below.
