On 19 December 2022, the Bank of England (the Bank) published the supervision of financial market infrastructures annual report.

The report explains that financial market infrastructure firms (FMIs) supervised by the Bank are essential to the smooth and safe operation of the UK financial system. Consequently, the Bank’s

supervision of FMIs is essential for financial stability by ensuring that their risk management and resilience frameworks enable them to carry out their vital functions in normal times and during periods of stress.

The report states that over the past year, the Bank’s supervision of FMIs has continued to contribute significantly to the Bank’s delivery of its objective to protect and enhance UK financial stability and it sets out the key things it  has done to deliver this objective in four key areas:

  • delivering robust supervision in challenging times;
  • developing and implementing a clear forward agenda on central counterparty (CCP) resilience and recovery;
  • shaping the UK’s response to innovations in payments; and
  • setting out the Banks policy on the recognition and supervision of overseas CCPs and central securities depositories (CSDs) who want to provide services to the UK.

The report also explains how the Bank has continued to supervise the UK FMIs effectively as the economy and financial markets emerged from the pandemic and faced the challenges caused by the war in Ukraine.