Since 2009, unprecedented global reform has transformed the legal and regulatory landscape for financial market infrastructures (FMIs), pushing the financial services industry into the spotlight. At the same time, new technologies, new techniques for data analysis and behavioral changes are having an impact on the nature and evolution of FMI functions. Against this backdrop, in June 2017, the Financial Market Infrastructure Conference II: New Thinking in a New Era (FMIC 2) brought senior policy makers, practitioners and academics from around the world to Amsterdam to evaluate the regulatory landscape, share original research and stimulate interdisciplinary ways of thinking about this new era for FMIs.
The first conference in this series was organized and hosted by De Nederlandsche Bank in 2012 and marked the launch of The Journal of Financial Market Infrastructures (JFMI). This second conference was also hosted by De Nederlandsche Bank and supported and co-organized by the Bank of Canada, the Bank of England, the Bank of Mexico, the Law Department of the London School of Economics (LSE Law) and JFMI.
The focus of FMIC 2 was policy-oriented research and policy dialogue, with the program comprising two days of keynote speeches by prominent and influential leaders in the field, expert panels and a series of high-quality papers delivered by researchers from academic and policy institutions. The program was developed around four themes:
- real-time gross settlement (RTGS) systems and, in particular, how new tech- niques for analyzing the large data sets available to payments researchers can be applied to support policy-oriented research in this field;
- the application of distributed ledger technology in payment, clearing and settlement;
- central counterparties (CCPs) and systemic risk; and
- the challenges and practice of CCP recovery and resolution.
This special issue of JFMI brings together a number of papers accepted for inclusion in the FMIC 2 program and reproduces two of the conference’s three keynote speeches.
FMIC 2 special issue introduction: a policy view on developments in the field of financial market infrastructures
This introductory article positions these papers and speeches within the context of the wider conference proceedings of the Financial Market Infrastructure Conference II: New Thinking in a New Era, including insights from the panel sessions and…
This paper is the text of a keynote address by Charles M. Kahn, presented at the Financial Market Infrastructure Conference II: New Thinking in a New Era.
The authors conduct a head-to-head comparison of central and bilateral clearing to evaluate the impact of market structure on market stability.
The absence of evidence and the evidence of absence: an algorithmic approach for identifying operational outages in TARGET2
This paper implements an algorithmic approach to identify participants’operational outages based on transaction data.
This paper identifies the determinants behind the dynamics of the real-time settlement payment system in Mexico, SPEI, during the period January 2005–December 2015.
The paper is the text of a keynote address by Marc Bayle de Jessé presented at the conference.
This paper examines the impact of market structure and payment assumptions on the fragility of various networks.
This paper investigates how financial market participants respond to risk mutualization implemented by a CCP using assessments after a large credit loss.
This paper describes the current policy for recovery and resolution of CCPs and assesses the tool kit for resolution of them.
This paper examines how DLT can be used in the area of PCS, and identifies both the opportunities and challenges associated with its long-term implementation and adoption.