Resolution, on the other hand refers to the orderly winding-down of an FMI, and would take place only if recovery fails or is not desirable. Last month, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO), published a report on “Recovery of financial market infrastructures”.
Also last month, the Financial Stability Board published a report on the Key Attributes of Effective Resolution Regimes for Financial Institutions, which includes an annex dedicated to resolution regimes for FMIs. Together, these two reports are important milestones in strengthening the resilience of FMIs, and of the financial system more broadly.