Financial Stability Board Questionnaire on Continuity of Access to FMIs for Firms in Resolution
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, according to which providers of critical FMI services should 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; thereby clarifying the actions they may take in a resolution scenario, to support firms and authorities in enhancing resolution readiness. Since then, the TARGET2 operator has taken measures to reflect the FSB Guidance in the relevant TARGET2 legal and operational documentation.
On 14 August 2020, the FSB published a common template for gathering information about continuity of access to FMIs for firms in resolution with the objective to streamline the provision of information from FMIs to firms and authorities and to reduce the number of inquiries from banks and authorities to FMIs. The template takes the form of a questionnaire that all FMIs are encouraged to complete. Following an evaluation of stakeholders’ first experiences with the process via an online survey in April 2021, the FSB has updated the questionnaire.
The Eurosystem as the operator of TARGET supports this initiative of the FSB and updated the previous version of the document taking on board the new consolidated platform and the new TARGT Guideline.
In a first document, the national central banks (NCBs) as the operators of their TARGET component system publish the responses to all those questions that can be answered for TARGET as a whole. This does primarily cover all those aspects that are regulated in the TARGET Guideline. It explains the general approach of the TARGET operator towards TARGET participants in resolution. This first set of responses is identical across NCBs.
In a second document, the NBB included the remaining questions, namely those that primarily concern domestically defined rules and procedures for the interaction between the central bank and a TARGET-BE participant in resolution.
Participants in TARGET-BE are invited to contact The National Bank of Belgium in case of questions related to the general approach or to the responses for TARGET.