Abstract
Great hope is being pinned on FMIs. They lie at the heart of the financial system and enable the post-trading business by successfully completing trades and concentrating as well as mitigating risks. This end of the payment and securities settlement business does not usually attract much attention: It is expected to be there and function. In this respect, it is comparable to oxygen in the air – most people do not think about it, however, if something is wrong with it, things can turn bad extremely quickly. Such was the case with the Lehman crisis of 2008, playing a major role in the unfolding of the global crisis of the late 2000s. It became apparent just how vital these FMIs were in enabling the continuation of the globe's securities & derivatives exchanges. In particular, CCPs played a major role in keeping transaction processing ticking over. It became evident which knock on effects the downturn of one institution can have on the global financial landscape. As such, we all depend on those markets and on the performance of what can only be described as ‘knights in shining armour'.
Published Version
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