The Bank of Canada today published the Bank of Canada Oversight Activities for Financial Market Infrastructures 2021 Annual Report. The Report reviews the Bank’s oversight of designated clearing and settlement systems, 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, which outlines how the Bank fulfills this mandate, provides stakeholders with information about:
- the Bank’s approach to oversight of FMIs
- improvements that designated FMIs made to their risk management practices in 2021
- ongoing and new expectations set by the Bank for designated FMIs to enhance their risk management practices in 2022 and beyond
- other activities conducted by the Bank in relation to its mandates for FMI oversight, resolution and crisis preparedness
Throughout the year, designated FMIs continued to make progress on key priorities, including modernization initiatives. In addition, they improved their risk management practices, addressing several gaps the Bank had previously identified.
The Bank made significant progress on its own priorities pertaining to its mandates for FMI oversight, resolution and crisis preparedness, notably by:
- finalizing the framework for cooperation on FMI resolution
- publishing its Expectations for Cyber Resilience of Financial Market Infrastructures and Guideline for Cyber and Information Technology Incident Reporting