There is another set of players out there who think of the Payments System Board as the body that seeks to ensure the stability of key financial market infrastructure, or “FMIs”, such as securities settlement systems and, increasingly importantly, central counterparties – which stand between financial market participants in order to better manage risk.
Much of this role came to the Board later than its initial payments mandate, when the Corporations Act 2001 adopted licensing arrangements for all clearing and settlement facilities in 2001. As important as the Board’s work on payments system efficiency is, the stable operation of FMIs has a direct bearing on financial market and financial system stability.