Financial market infrastructures
Protecting the stability of Canada’s critical financial systems
We oversee key financial market infrastructures (FMIs) to support the stability of the Canadian financial system by reducing risk.
Our responsibilities
Under the authority of the Payment Clearing and Settlement Act, we conduct regulatory oversight of financial market infrastructures designated as having the potential to cause risk for the Canadian financial system as a whole, whether operated from Canada or from abroad. We also serve as the resolution authority for those designated FMIs that are based in Canada.
How oversight is conducted
FMIs need to obtain the Bank’s approval before making any material change to their design or operation. The Bank also conducts proactive, periodic assessments of risk management. Oversight is conducted in accordance with the Bank of Canada’s Risk-Management Standards for Designated FMIs, which set expectations for governance, risk controls, resilience and recovery planning.
Role in financial stability
As part of its broader responsibility for financial stability, we also act as lender of last resort to the Canadian financial system. This role includes providing emergency liquidity support to FMIs in exceptional circumstances, helping to contain systemic stress and support the continued functioning of critical financial infrastructure.