The financial infrastructure in Sweden functions well
Date
15/04/2014
The financial infrastructure in Sweden is to a great extent safe and efficient. However, improvements to the individual financial market infrastructures (FMIs) and to Swedish legislation may further strengthen the financial system. These are among the findings of the annual Financial Infrastructure Report for 2014, published today.
The Riksbank's assessments are aimed at encouraging improvements to benefit the financial infrastructure and thus the financial stability of Sweden.
In summary, the Riksbank considers that:
The Swedish FMIs[1] need to improve their operations in various areas, among other means by developing recovery plans to safeguard their survival in the event of economic problems. They also need to identify and manage the risks that indirect participants[2] in the FMI may cause. These improvements are in line with the requirements placed in "Principles for financial market infrastructures"[3], which the Riksbank applies in its oversight and with which the Swedish FMIs are expected to comply.
The Settlement Finality Directive[4] should be fully implemented in Swedish law so that all participants in a settlement system can be sure that transfers really are permanent. European authorities should also develop a framework for the resolution of FMIs as soon as possible. Such a framework already exists for banks.
Read the full report
The report is issued once per year and is available from the Riksbank's website, www.riksbank.se. The Report takes into account data available as of 31 March 2014.
[1] The Swedish FMIs that the Riksbank currently oversees are RIX, Bankgirot, Euroclear Sweden and NASDAQ OMX Clearing.
[2] Indirect participants are financial agents that are not subject to the FMIs' rules but whose transactions are cleared, settled or stored by the FMI.
[3] Issued in 2012 by the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO).
[4] Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems.
