In particular, the regulatory review — which examined 38 financial market infrastructures (FMIs) in 29 jurisdictions — found that FMIs’ recovery plans in the event of a calamity, such as a natural disaster or a major systems outage, fall short of expectations.
“The business continuity management of some, and potentially many, FMIs do not seem to aim to resume operations in a timely way, including in the event of a wide-scale or major disruption,” the regulators said.
The review noted that IT systems should be able to be restored within two hours of a major incident, and that FMIs should be capable of settling transactions by the end of the day of the disruption, even in “extreme circumstances.”
“Given this is a serious area of concern, the CPMI and IOSCO expect the relevant FMIs and their [regulators]to address this as a matter of the highest priority,” the review said.
FMIs have generally…