The financial infrastructure is safe and efficient
Date
15/04/2015
The financial infrastructure in Sweden consists of safe and efficient financial market infrastructures (FMIs). But there is scope for improvement to further increase the safety and efficiency of the financial infrastructure. These are among the findings of the annual Financial Infrastructure Report 2015, published today.
To increase safety and efficiency in the financial infrastructure, the following actions need to be taken:
A resolution framework should be developed for FMIs. Euroclear Sweden's work on replacing its IT system for securities settlement should be preceded by thorough analysis and planning. The preventive work regarding the RIX system should be reinforced as a result of some minor disruptions in the system. A review of the processes and routines is therefore necessary. Issuers of bonds with variable coupons should - in close dialogue with Euroclear Sweden - make it clear to market participants how these bonds are adapted to negative interest rates.
The report also presents three areas the Riksbank will work on in 2015 and follow up in the report published in 2016:
Together with Finansinspektionen (the Swedish Financial Supervisory Authority) and in accordance with the CPMI-IOSCO guidelines, evaluate the recovery plans drawn up by the FMIs in 2014. In cooperation with Finansinspektionen, investigate how the FMIs work on managing cyber threats . Carry out an analysis of the consequences of a potential T2S connection from a stability and efficiency perspective .
Read the full report
In this report, the Riksbank presents its assessments of the stability and efficiency of the financial infrastructure in Sweden, and describes the starting points for the Riksbank's oversight work, how this is carried out in practice, and which areas the Riksbank will focus its oversight work on in 2015.
The report is issued once a year. The Head of the Financial Stability Department is responsible for the contents of the report. This year's report takes into account data available until 31 March 2015.
The report is available on Sveriges Riksbank's website, www.riksbank.se.
1) Resolution is an alternative procedure to bankruptcy for FMIs, as they are considered critical to the functioning of the financial system.
