What do we do?

How we supervise FMIs

The Bank of England’s approach to financial market infrastructure supervision (2024) sets out how we supervise FMIs. 

Our supervisory approach to onboarding new FMIs (2025) provides additional detail on our supervisory approach for new and prospective FMIs.

We also publish annual reports on our regulation of FMIs and these contain information about updates to our supervisory approach.

We use the CPMI-IOSCO Principles for financial market infrastructures as an international benchmark for our standards.

There are different legal regimes for central securities depositories, CCPs, payment systems and systems designated under the Settlement Finality Regulations. Some FMIs may have requirements under more than one regime. 

We also have enforcement powers under the different legal regimes applicable to FMIs.

Supervisory stress testing of central counterparties (CCPs)

In June 2021, the Bank published a Discussion Paper setting out its proposed framework for Supervisory Stress Testing of CCPs. In October 2022, the Bank published the results report for its first public CCP supervisory stress test exercise, the 2021-22 CCP SST. In November 2023, the Bank published the results report for its second CCP Supervisory Stress Test exercise, the 2023 CCP SST. In November 2024, the Bank published the results report for its third CCP Supervisory Stress Test exercise, the 2024 CCP SST. In December 2025, the Bank published the results of its fourth iteration of this test – the 2025 CCP Stress Test. Further details on the Bank’s CCP supervisory stress testing are available at Stress testing.

Rulemaking powers

On 1 January 2024, the Financial Services and Markets Act 2000 (the Act) as amended by the Financial Services and Markets Act 2023 (FSMA 2023) gave the Bank new powers in its role as the UK’s regulator for central counterparties (CCPs) and central securities depositories (CSDs). This was matched by an enhanced transparency and accountability regime. FSMA 2023 introduced allowed the Bank to replace repealed firm-facing requirements contained in retained EU legislation with its own rules. This complements the existing power to make codes of practice for payment systems. We will base our approach to the repeal and replace of retained EU legislation into Bank rules, first and foremost, on our commitment to holding FMIs to the highest standards, in accordance with the PFMIs, as well as other relevant international standards.  

We are required to carry out cost benefit analysis (CBA) when making rules for CCPs and CSDs, We have published a statement of policy setting out its approach. Our approach explains how we estimate costs and benefits as part of our policymaking process, and the role of regulation of CCPs and CSDs in ensuring the stability of the UK’s financial system. Supported by the CBA Panel, CBA enhances the transparency of our policymaking and our accountability and helps us make better policy.

We are committed to regularly reviewing our rules to ensure they remain effective, proportionate and responsive to developments in financial markets. We have published our approach to rule review to set out how we will do this. In exercising our rulemaking powers, we also have the flexibility to grant permissions, waivers or modifications to firms. We have published a consultation on our approach to  rulemaking powers and will publish our final policy in due course.  

Waivers and modifications of rules

The Bank of England has the power to waive or modify CCP, CSD or critical third party rules under Section 138A of the Financial Services and Markets Act 2000 (FSMA).

Firms applying for a Section 138A FSMA waiver should send the general modification and waiver FMI and CTP application form (PDF) and any supporting documentation to FMIInformation@bankofengland.co.uk.

The Bank of England’s approach to setting the Clearing Obligation

The Bank of England is responsible for specifying the classes of OTC derivatives that are subject to the clearing obligation under UK law. 

The classes of OTC derivatives currently subject to the UK clearing obligation are set out in a public registerOpens in a new window. The Bank will keep the scope of the UK clearing obligation under review.

Central banks receiving settlement finality protection for securities held as collateral security

The Settlement Finality RegulationsOpens in a new window also set out how the Bank may notify HM Treasury of the non-UK central banks that will receive protection against UK insolvency law challenges in relation to their central bank functions. 

At the present time, the central banks of EEA states and the European Central Bank receive this protection. To ensure the continuity of this protection following the UK’s withdrawal from the EU, the Bank has accordingly notified HMT of those central banksOpens in a new window. This protection is now in operation.

This list may be updated from time to time.

CHAPS

On 13 November 2017, the Bank of England started to deliver the CHAPS service.

Our Financial Market Infrastructure Directorate supervises this work. We expect the same standards of it as any other systemically important payment scheme. 

Crisis information

Financial market infrastructures are critical to a stable financial system. Systems should contact their supervisors in the first instance if they have any issues. 

Insolvency practitioners’ protocol

The purpose of the industry insolvency protocol is to promote a clearer understanding of the regime (set out in Part VII of the Companies Act 1989) and the responsibilities of central counterparties (CCPs) and insolvency practitioners (IPs) in the event of a default in relation to an insolvent clearing member. 

The protocol is non-binding and sets out the mutual understanding of the IPs and CCPs as to procedures that they consider would be desirable to be followed in such a default event.

The protocol includes:

• procedures to facilitate coordination and information exchange between IPs and CCPs
• the legal obligations of IPs and CCPs under Part VII of the Companies Act and EMIR (for CCPs)
• the responsibilities of IPs and CCPs in cases where either the special administration regime (SAR) or general administration (under insolvency law) is applied
• practical arrangements for CCPs and IPs to achieve their respective objectives

The protocol is relevant for participants in central clearing including:

• CCPs, clearing members and their clients
• relevant authorities such as the Bank of England, HMT and the FCA
• IP; and any other party that may consider itself affected by the default of a clearing member

Guidance on recognised clearing houses for insolvency practitioners

Regulatory fees

The Bank has statutory powers to require FMIs to pay fees relating to supervisory work and for certain applications.

The Bank levies fees for its FMI supervisory activity and the policy activity which supports this, as permitted by the Bank’s fee powers. This includes the costs of FMI supervision staff together with relevant policy support, specialist resources and corporate services and other costs associated with the work of the FMID. Other areas of activity undertaken by FMID not within the scope of the powers set out above will continue to be funded out of the Bank’s broader budget.

• The Bank of England’s fees regime for financial market infrastructure supervision 2024/25
• The Bank of England’s fees regime for UK financial market infrastructures