Release of the 2018 Bank of Canada FMI Oversight Activities Annual Report

The Bank of Canada today published the Bank of Canada Oversight Activities for Financial Market Infrastructures 2018 Annual Report (the Report) on its oversight of payment clearing and settlement systems, which are also known as financial market infrastructures (FMIs).

The Bank has a mandate to ensure that designated FMIs are following sound risk management practices. The Report outlines how the Bank fulfills this mandate and provides stakeholders with information about the following:

• the Bank’s approach to oversight of FMIs,
• improvements designated FMIs made to their risk management practices in 2018,
• expectations set out by the Bank for designated FMIs to enhance their risk management practices in 2019, and
• oversight activities conducted by the Bank.

Throughout 2018, designated FMIs continued to enhance their risk management practices in key areas. The Bank also made significant progress on its oversight priorities, notably by advancing an FMI resolution regime for Canada and contributing to the work of international committees, including the development of G7 publications that offer guidance on strengthening cyber resilience in the financial sector. Beyond this, the Bank conducted research initiatives to deepen the understanding of issues related to FMIs and the Bank’s oversight function.