Fsr act relating to corporate governance standards applicable to financial institutions, both. Together with its ordinance, the financial market infrastructure act finmia entered into force on 1 january 2016. Financial market infrastructure act, fmia of 19 june 2015 status. All systemically important fmis should have a comprehensive and. The reserve bank has today published an exposure draft of the financial market infrastructures bill fmi bill, and is asking for feedback from stakeholders over the next eight weeks. Gfma global financial markets association legal entity. Federal act on financial market infrastructures and market. Federal council extends transitional period for reporting of derivative transactions by small nonfinancial counterparties. The federal reserve bank of new york works to promote sound and wellfunctioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions. The swiss financial market infrastructure act fmia came into force on january 1, 2016. Cpmiiosco recovery of financial market infrastructures october 2014 revised july 2017 1 executive summary the purpose of this report is to provide guidance for financial market infrastructures fmis and authorities on the development of recovery plans.
Financial market infrastructures and payment services. The giving of directions to qualifying parent undertakings of uk recognised clearing houses. On 1 january 2016, the swiss finanzmarktinfrastrukturgesetz finfrag, also known as financial market infrastructure act fmia, has been enacted and aligns with the other derivativesrelated reforms. Guide to the financial market infrastructure act walder wyss. Amended by financial sector regulation act 9 of 2017 from 1 apr 2018.
It thus created uniform regulation of financial market infrastructures and derivatives trading in line with market developments and international requirements. The reserve bank oversees new zealand financial market infrastructures fmis, such as payment and settlement systems, for the purpose of promoting the maintenance of a sound and efficient financial system. In contrast, the financial markets infrastructure regulation in switzerland mainly consists of two acts. Fmia primarily focusses on rules for trading venues such as. Notice on financial market infrastructure standards for central securities depositories 1 introduction 1. Finfrag law and explanatory document requirement matrix pdf en. Finanzmarktinfrastrukturgesetz aims at regulating derivatives trading in switzerland under supervision of the swiss financial market supervisory authority finma drawn on the eu regulation emir and the american regulation dodd.
Fmia primarily focusses on rules for trading venues such as stock exchanges on eulevel contained in the markets in financial instruments regulation mifir but also includes various obligations for. Pension fund investment in infrastructure and global. With the entry into force of the financial market infrastructure act fmia and the financial market in frastructure ordinance fmio on 1 january. The fmi bill covers vitally important financial systems for new zealanders, including the infrastructure that supports our dayto. The us bankruptcy code is not currently adapted to safely resolve a failing ccp.
On 4 may 2017 the reserve bank of new zealand rbnz released a cabinet paper and regulatory impact statement ris for the legislation to put in place a new oversight regime for financial market infrastructures fmis, which cabinet has now approved. Financial market infrastructure 253 able form of administrative failure resolution authority is evident. Amended by financial services laws general amendment act 45 of 20 from 28 feb 2014. Besides it was intended to ensure supervision of overthe. The objective of finfrag is to regulate i the organization and the operation of financial market infrastructures, ii the trading of derivatives and iii the conduct of. Financial market infrastructure fmi refers to critically important institutions responsible for providing clearing, settlement and recording of monetary and other financial transactions. Attendance of meetings by, and furnishing of documents to, registrar 71. It was originally adopted by the swiss federal assembly on june 19, 2015 and came into force on january 1, 2016 the objective of the legislation is to reduce systemic counterparty and.
Swiss financial market infrastructure act fmia and article 385 and 6 european unions central securities depositories regulation csdr offer of choice of segregated accounts at csd level under article 732 fmia and article 385 csdr. Fmia financial market infrastructure act, in german. Amended by financial sector regulation act 9 of 2017 from 1 apr 2019. The swiss financial markets infrastructure act fmia extends the regulatory. Financial penalties imposed by the bank under the financial services and markets act 2000 or under part 5 of the banking act 2009. The financial market infrastructure act fmia, original title finanzmarktinfrastrukturgesetz finfrag is a body of swiss legislation for the regulation of financial. Legal update the financial markets infrastructure bill.
Notice to clients of hsbc private bank suisse sa under. The fmia covers organizational and behavior rules for all financial market infrastructures and sets out regulations for otc derivative contracts as well as general requirements on market behavior rules, while the financial services act. The financial market infrastructure act fmia, original title finanzmarktinfrastrukturgesetz finfrag is a body of swiss legislation for the regulation of financial markets, in particular derivatives. The swiss financial market infrastructure act fmia came into force on 1 january 2016. Financial market infrastructures bill reserve bank of new zealand. Financial market infrastructure act finmia further information. Iosco international organization of securities commissions. Financial market infrastructure supervision bank of england. Central banks, through the committee on payments and market infrastructures formerly known as the committee on payment and settlement systems cpss, and securities regulators, through the international organization of securities commissions iosco, have collaborated over the years to promote the safety and efficiency of payment, clearing, settlement, and recording systems supporting. The financial market infrastructure act fmia, also known under the german denomination finfrag i. The different categories of fmis, as identified under principles for financial market infrastructures pfmis, are. Swiss financial market infrastructure act fmia finfrag.
Limitation on control of and shareholding or other interest in market infrastructures 68. Financial markets conduct act 20 no 69 as at 21 april. Financial market infrastructure oversight reserve bank. Guide to the financial market infrastructure act page 5 of 17 the organisation and operation of the financial market infrastructures e. Fmis are a critical element of the financial system and are highly relevant for the reserve bank. Financial market infrastructure act 5 structure, finma may require organisational measures or the establishment of additional own funds and sufficient liquidity. Pension fund investment in infrastructure and global financial regulation a topic attracting attention in recent global regulatory discussions is the possibility that private pension funds invest in alternative assets, particularly infrastructure projects. Lamfalussy report report of the committee on interbank netting schemes of the.
Introduction in parallel to the global regulatory efforts as in the us, the eu and asia, switzerland tailored. Finfrag financial market infrastructure act a new challenge for derivatives market participants in the aftermath of the financial crisis in 2009, the governments of the g20 countries agreed that regulation would be necessary to enhance the resilience and transparency of the derivatives markets. Financial market infrastructure act fmia pestalozzi attorneys at law. Even a proposed new chapter 14 of the code that is designed to treat a range of systemically important non. Public consultation begins on draft financial market. Financial market infrastructure act baker mckenzie. A payment system considered to be systemically important, and which is therefore subject to supervision. Financial markets act 19 of 2012 south african government. Finfrag finanzmarktinfrastrukturgesetz, is the respective swiss regulation that is in force since january 2016. An act to provide for the regulation and supervision of financial institutions, payment systems and other relevant entities and the oversight of the money market and foreign exchange market to promote financial stability and for related, consequential or incidental matters. Securities trading financial market infrastructures the financial markets infrastructure act fmia,1 the financial market infrastructure ordinance fmio2 as well as the financial market infrastructure ordinance fmiofinma3 of the swiss financial market supervisory authority finma entered into force on 1 january 2016.
The swiss federal council, based on the financial market infrastructure act of 19 june 20151 fmia, ordains. Organization and operation of financial market infrastructures. Financial market infrastructure act fmia in the wake of the global financial crisis, the g20 states agreed to subject the financial markets to extensive regulation serving stabilization and transparency. Manner in which the rules of certain market infrastructures may be made. Finma guidance 012016 financial market infrastructure act. This is best achieved through regulatory mandates in major financial reporting standards, such as the european market infrastructure regulation emir, the markets in financial instruments directive ii mifid ii or otc derivatives reporting under the doddfrank act. Financial market infrastructures fmis are multilateral systems that provide trading, clearing, settlement, and reporting services in relation to payments, securities. Finfrag imposes a number of new obligations for swiss market participants and their.
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