Financial Markets infrastructure (FMI) is an important component of a functioning capital markets. This infrastructure supports trading in securities and derivative instruments. Australian financial regulators oversee the operations of CS facilities and high-value payment systems. They have set standards for these institutions, based on the Principles of Financial Market Infrastructures (PFMI), which are internationally accepted standards. These standards should be adhered to by high-value payments systems.
Financial institutions must make the transition to the new LIBOR deadline a priority. Finclear Senior Executive Leader for Markets Infrastructure, DAVID FERRALL, recently reminded financial institutions that the transition is an international priority. He said the regulator would continue to engage with key institutions to meet deadlines and international standards. He also announced that he would launch a second round of consultation with corporations and buy-side firms.
Finclear is also working to streamline the Capital Regime. The new regulatory framework will streamline the capital regime, replacing separate rule books for futures and securities leading and borrowing market participants. It will also provide protections for consumers. The new rules will complement the existing regulatory framework for financial services in Australia. This will improve consumer protections, reduce regulatory burdens, and increase competition.
The Australian Securities Exchange operates the national stock market, which is used for trading platform in shares, debt securities, and derivatives. The exchange also provides clearing services for securities and derivatives through ASX Clear and ASX Austraclear. In addition to the ASX, Chi-X Australia was launched on 9 November 2011.
A well-managed Financial Markets Infrastructure (FMI) is a key component of a stable financial system. It helps ensure the smooth operation of financial markets and the economy. It includes technical infrastructure, operators, and specialized risk management frameworks. These services can reduce transaction costs and increase transparency.