BANKING AFFAIRS

Detailed explanation-1: -Financial Market Infrastructures (FMIs) are key components of the financial system, delivering services critical to the smooth functioning of financial markets. Well-designed and reliable FMIs can be a source of both financial stability and operational efficiency.

Detailed explanation-2: -The Principles for financial market infrastructures are the international standards for financial market infrastructures, ie payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.

Detailed explanation-3: -An FMI is defined as a multilateral system among participating institutions, including the system operator used for clearing, settling, or recording payments, securities, derivatives, or other financial transactions.

Detailed explanation-4: -The financial infrastructure is the core in the financial system and is a precondition of its functioning. The financial infrastructure is made up of technical systems through which payments are made and transactions with financial instruments are handled.