Financial market infrastructure supervision (2024)

Our use of cookies

We use necessary cookies to make our site work (for example, to manage your session). We’d also like to use some non-essential cookies (including third-party cookies) to help us improve the site. By clicking ‘Accept recommended settings’ on this banner, you accept our use of optional cookies.

Necessary cookiesAnalytics cookies

Necessary cookies

Necessary cookies enable core functionality on our website such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We use analytics cookies so we can keep track of the number of visitors to various parts of the site and understand how our website is used. For more information on how these cookies work please see our Cookie policy.

Skip to main content

In this section

Who are we? Our objectives; who we supervise and work with; our Governance and Accountability
What do we do? How do we supervise FMIs, Stress Testing, Clearing Obligation and Settlement Finality
Policy and tools Requirements for FMIs, Enforcement powers, Requirements powers, Crisis information, Regulatory fees, Stablecoin policy
Transitional regimes Transitional Regimes for incoming CCPs and CSDs, Temporary SFD regimes, Qualifying central counterparties transitionals
Authorisations Apply to become an approved UK or incoming FMI and for Settlement finality designation
Notifications / reporting Selling and buying CCP shares, new products within the TRR, Securities Internalised Settlement reporting, whistleblowing and confidential reporting

What are FMIs?

Financial market infrastructures (FMIs) allow the clearing, settlement, and recording of financial transactions. They enable millions of transactions to take place each day. Find out more in our short guide.

We supervise certain types of FMIs. These are:

  • payment systems recognised by HM Treasury
  • central securities depositories
  • central counterparties (CCPs)

Why we supervise FMIs

Our role is to protect and enhance financial stabilityin the UK. We supervise FMIs because they are a vital part of the UK’s financial system and its wider economy.

For example, payment systems are entities that allow funds to be transferred between, for example, businesses and individuals, and from business-to-business and individual-to-individual. They are used for many day to day transactions. CSDs keep ownership records of individual securities and facilitate the secure transfer of these securities between people or entities. CCPs sit between buyers and sellers of financial contracts so that both parties hold a contract with the CCP rather than with each other. This ensures that the obligations of a trade can be fulfilled if one party fails so reducing counterparty credit risk

FMI news and publications

Publication // Policy statement 23 May 2024 The Bank of England's approach to statutory... The Bank of England's approach to statutory notice decisions for use of its requirements powers - May...
Publication // Consultation paper 21 December 2023 The Bank of England's approach to statutory... The Bank of England's approach to statutory notice decisions for use of its requirements powers
News // Financial Market Infrastructures (FMI) 18 December 2023 The Bank of England's supervision of financial... The Bank of England's supervision of financial market infrastructures - Annual Report 2023
Prudential Regulation // Consultation paper 07 December 2023 CP26/23 - Operational resilience: Critical... CP26/23 - Operational resilience: Critical third parties to the UK financial sector

View more FMI news and publications

Back to top

This page was last updated 23 May 2024

Financial market infrastructure supervision (2024)


What is the role of financial market infrastructure? ›

Well-designed and reliable FMIs can be a source of both financial stability and operational efficiency. FMIs act as a coordinating device, bringing a network of counterparties together to support trading liquidity and the netting of exposures and settlement obligations.

What is an example of a FMIs? ›

Many of us use FMIs on a daily basis, for example for salary or pension payments into our bank accounts, to take cash out of a cash machine or to pay for something online. Every day we make around 360 billion pounds worth of these types of payment through FMIs based in the UK, and regulated by the Bank of England.

What are the principles of Pfmis? ›

The Principles for financial market infrastructures are the international standards for financial market infrastructures, ie payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.

Who regulates FMIs? ›

The Bank of England is responsible for supervising certain financial market infrastructures in the UK. FMIs are a vital part of the economy. This section refers to the Bank's functions as FMI regulator.

What is an example of a financial market infrastructure? ›

Examples of financial market infrastructure firms include payment systems, securities settlement systems, central securities depositories, central counterparties, and trade repositories.

What are the examples of market infrastructure? ›

Systemically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories are collectively known as financial market infrastructures (FMIs).

How does FMIS work? ›

Financial Management Information Systems (FMIS) support the automation and integration of public financial management processes including budget formulation, execution (e.g. commitment control, cash/debt management, treasury operations), accounting, and reporting.

What is a well designed financial management information system FMIS should? ›

Summary: A well-functioning financial management information system (FMIS) provides timely, reliable, and comprehensive reports that support implementation of the government's fiscal policies and fiscal rules, and the formulating, controlling, monitoring, and executing of the budget.

What is the role of MIS in financial management? ›

MIS can help you integrate and analyze data from various sources, such as accounting, sales, inventory, payroll, and customer relationship management (CRM). This can help you gain a comprehensive and accurate view of your financial situation, identify trends and patterns, and support decision-making.

What are the risks of FMI? ›

What is risk at an FMIs? FMI risk is different from bilateral credit exposure and is typically a lower risk. This said, due to the existence of a default fund, liquidity funds and loss-sharing arrangements, counterparties can incur credit-like losses, even in the absence of the default of the counterparty itself.

What are the risks of market infrastructure? ›

market infrastructure risk

The main financial market infrastructure risks are legal, liquidity, credit, business, custody, investment and operational risk.

What is FMI in banking? ›

1.1 Financial Market Infrastructure (FMI) is defined as a multilateral system among participating institutions, including the operator of the system, used for the purposes of clearing, settling, or recording payments, securities, derivatives, or other financial transactions.

Is Swift a financial market infrastructure? ›

SWIFT has become a crucial part of the global financial infrastructure. More than 11,000 global SWIFT member institutions sent an average of 44.8 million messages daily through the network in November 2022.

What are systemically important FMIs? ›

FMIs are more likely to be systemically important if they play a significant role in the operation of the markets they serve and if those markets are significant to the stability of the financial system and proper functioning of the economy.

How do FMIs play an important role in enhancing financial stability? ›

By acting as intermediaries, FMIs ensure the completion and finality of transactions, reducing the risk of default and enhancing market stability.

What is the financial infrastructure? ›

The financial infrastructure is the core in the financial system and is a precondition of its functioning. The financial infrastructure is made up of technical systems through which payments are made and transactions with financial instruments are handled.

What is the role of market infrastructure institutions? ›

What are Market Infrastructure Institutions (MIIs)? Stock exchanges, Clearing Corporations and Depositories together constitute MIIs. Stock exchange- Stock exchange is an institution which assists, regulates or controls the business of buying, selling or dealing in securities.

What are the three main roles of financial markets? ›

Financial markets facilitate the interaction between those who need capital with those who have capital to invest. In addition to making it possible to raise capital, financial markets allow participants to transfer risk (generally through derivatives) and promote commerce.

What is the need of market infrastructure? ›

A good Marketing Infrastructure enables leads to come into the business, collect important data, effectively guides prospects through the marketing funnel and allows you to nurture them before converting them into customers.


Top Articles
Latest Posts
Article information

Author: Saturnina Altenwerth DVM

Last Updated:

Views: 6452

Rating: 4.3 / 5 (44 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Saturnina Altenwerth DVM

Birthday: 1992-08-21

Address: Apt. 237 662 Haag Mills, East Verenaport, MO 57071-5493

Phone: +331850833384

Job: District Real-Estate Architect

Hobby: Skateboarding, Taxidermy, Air sports, Painting, Knife making, Letterboxing, Inline skating

Introduction: My name is Saturnina Altenwerth DVM, I am a witty, perfect, combative, beautiful, determined, fancy, determined person who loves writing and wants to share my knowledge and understanding with you.