Effective Oversight of Financial Market Infrastructures

Effective Oversight of Financial Market Infrastructures

Effective Oversight of Financial Market Infrastructures

Course Chair: Richard Heckinger, former Vice President and Senior Policy Adviser, Federal Reserve Bank of Chicago

 

Day 1, 10th September: The Oversight Framework: Key Changes and Challenges 

New dynamics in the oversight landscape
Richard Heckinger
, Associate Editor, Journal of Financial Market Infrastructures, and former Vice President and Senior Policy Adviser, Federal Reserve Bank of Chicago

  • Evolution of the Financial Market Infrastructure landscape
  • Overview of key challenges, developments and disruptive forces
  • Examples of cross-jurisdictional cooperation and coordination
  • Discussion: what are the key features of the FMI landscape in the delegate home jurisdictions?

Technological foundations of financial market innovation: an overseer’s guide
Klaus Loeber
, Head of Oversight, European Central Bank 

  • The state of the art of Financial Technology in 2019
  • Key forces, trends and dynamics shaping financial market innovation
  • Unavoidable risks, critical challenges and emerging opportunities
  • Discussion: How do central banks need to change to make the most of FinTech? 

Digital currencies: what are the implications for payments and settlements?
Group discussion led by representative of the Central Bank of the United Arab Emirates

  • Differences and overlaps between privately issued crypto assets and central bank digital currencies (CBDC)
  • Building blocks of effective regulatory and supervisory frameworks for privately issued crypto assets
  • Implications of CBDCs for financial stability, payments and settlements
  • Discussion:  do CBDCs represent a realistic and desirable goal?

Day 2, 11th September: Making the Most of the New Toolkit

The future of oversight: the technology chapter
David Bailey
, Executive Director, Financial Market Infrastructure, Bank of England

  • Key features of a modern FMI oversight framework
  • Technological foundations of an effective oversight toolkit
  • Risks and opportunities of RegTech and SupTech
  • Discussion: what does it take to balance support for innovation with consumer protection?

Applying Network Analytics in FMI design and oversight: the Canadian experience
Neville Arjani
, Principal Researcher, Payments Canada

  • Impact of FinTech on the evolution of FMIs
  • Applications of advanced technology in the areas of Network Analytics and Agent Based Models for FMI oversight
  • Tips for collecting and effectively combining qualitative and quantitative statistics
  • Case study: building blocks of the new FMI framework in Canada

RegTech for FinTech: overseeing mobile payments frameworks
Nahiomy Alvarez
, Financial Markets Group, Federal Reserve Bank of Chicago

  • Examples of technology driven evolution of mobile payments
  • Impact on traditional payments and settlements
  • Implications for oversight frameworks
  • Discussion: to what extent can RegTech effectively respond to FinTech challenges?

PFMI: next steps in implementation and monitoring 
Bjørn Bakke
, Assistant Director, Financial Infrastructure Unit, Norges Bank 

  • State of the art of PFMI implementation
  • Tips for overcoming key methodological challenges
  • Assessment of the latest monitoring exercise
  • Discussion: PFMI implementation in the delegates’ home jurisdictions

Cross-border payments and settlements: what does it take to achieve a cooperative oversight?
Panel with Klaus Loeber, Head of Oversight, European Central Bank; David Bailey, Executive Director, Financial Market Infrastructure, Bank of England and Joaquin Bernal Ramirez, Head of Payment Systems and Banking Operations, Central Bank of Colombia

  • Role of cross-jurisdictional cooperation and coordination in FMI oversight
  • Tips for overcoming key legal and methodological challenges
  • Examples of successful projects and initiatives
  • Implication of disruptive innovation 
     

Day 3, 12th September: Stress Testing the System 

Core elements of effective stress testing frameworks
Joaquin Bernal Ramirez
, Head of Payment Systems and Banking Operations, Central Bank of Colombia

  • Differences and overlaps between organisation of the oversight and supervision functions
  • Evolution of systemic stress testing for FMI analysis
  • Building blocks of effective stress testing frameworks
  • Discussion: how to effective share data between regulators and supervisors?

How to use SupTech for stress testing FMIs
Workshop led by Dave Sissens, FMI specialist, Financial Network Analytics

  • Impact of disruptive innovation on stress testing methods and procedures
  • Examples of advanced technology based software solutions
  • Opportunities and risks of applications of Big Data, Network analytics and Machine Learning
  • Hands-on exercise: stress-testing in practice 

Oversight challenges of CCPs
Froukelien Wendt
, Senior Financial Sector Specialist, International Monetary Fund 

  • Examples of policy issues of CCPs for overseers
  • Implications for margining, collateral, interoperability and recovery and resolution
  • Impact on transparency, simplicity and risk reduction to over the counter (OTC) derivatives markets
  • Discussion: role of CCPs in the wider FMI context


Day 4, 13th September: Preparing for the Future

Real-time retail payments: the realities of oversight
Carlo Palmers
, Head of Payments Market Infrastructures, Marketing, SWIFT

  • Impact of immediate fund transfers on retail payment frameworks
  • Examples of real-time payments in various jurisdictions
  • Opportunities and challenges for oversight
  • Discussion: introduction of real time payments in the delegates’ home jurisdictions

What next for FMI resolution regimes?
Claudine Hurman
, Head of Financial Market Infrastructures, Banque de France

  • Impact of failed FMIs on the payments ecosystem
  • Key features of effective resolution regimes for FMIs
  • New developments in the FSB’s framework
  • Discussion: what next for resolution regimes?

Closing remarks and delegate action plans
Concluding session led by the chair, Richard Heckinger

  • Summary of the training course
  • Discussion of the observed trends and case studies 
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points