With rising climate change and cybersecurity risks, which can significantly disrupt financial institutions, legislators and financial regulators urgently need to be more focused on financial markets infrastructure companies (FMIs). FMIs are the critical plumbing of the global financial sector. Just like plumbing in our homes, most of us do not pay much attention to it, until something goes horribly wrong.

I have been monitoring derivatives clearing organization, since it became apparent during the 2007-2009 financial crisis that financial regulators would reform derivatives globally. Several years ago, I questioned whether some of these markets infrastructure companies could become the next Too Big To Fail (TBTF) given their size, complexity and interconnectedness to all…

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