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Financial trading venues such as stock exchanges, futures exchanges, commodities exchanges and electronic trading platforms, are not always considered financial market infrastructures where they are subject to competition, but are included in the definition of financial market infrastructures in certain jurisdictions such as Switzerland. [6]
A financial market must identify operational risks: both internally and across the market and its participants. Where appropriate, they should mitigate the risks through controls. [1] Systems used by the market must have a high degree of reliability and security, and must have sufficient capacity for the needs of the market. [1]
Section 804 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (DFA) provides the Financial Stability Oversight Council (FSOC) the authority to designate a financial market utility (FMU) that it determines is or is likely to become systemically important because the failure of or a disruption to the functioning of the FMU could create, or increase, the risk of significant ...
As of November 2011 when the G-SIFI paper was released by the FSB, [5] a standard definition of N-SIFI had not been decided. [9] However, the BCBS identified [when?] factors for assessing whether a financial institution is systemically important: its size, its complexity, its interconnectedness, the lack of readily available substitutes for the financial market infrastructure it provides, and ...
In general, three types of financial supervisory architecture have been identified by scholars: a "sectoral" supervisory architecture (sometimes referred to as "institutional" or "functional"), in which different authorities are in charge of different sub-sectors of the financial system such as banking, insurance, and securities markets;
The purpose of the Financial Supervisory Service is to contribute to the growth of the national economy by 1) promoting the advancement of the financial industry and the stability of financial markets; 2) establishing sound credit order and fair financial transaction practices; and 3) protecting financial consumers, such as depositors.
Globalization in banking and financial markets was not accompanied by global regulation. National regulators remained the most important actors in banking practices. They had a capacity problem and an information problem. [6] Therefore, the purpose of the BCBS is to encourage convergence toward common approaches and standards.
Moreover, it ensures the smooth functioning of the financial markets by supervising market infrastructures such as Euronext Brussels. Specifically: In the case of a takeover bid, the FSMA sees to it that the rules are complied with. The FSMA ensures that financial information on listed companies is available to everyone at the same time.