Payments and Market Infrastructure
The Global Risks Alliance (GRA)
Payments and financial market infrastructure is the part of the financial system that moves money and securities between parties and records who owns what. This page describes the sector, how its risks are managed and why its operational resilience matters, as a matter of research and shared understanding. It describes how the sector works; it does not execute, advise on or test anything.
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The Payments and Market Infrastructure sector overview covers operational resilience of clearing, settlement, payment systems and financial market utilities. It sets out who is in scope, from payment-system researchers and FMI professionals, how risk reaches the sector and how it travels onward, analysed with critical function mapping as well as dependency and outage analysis. GRA builds shared industry understanding and does not advise, rate or assess individual firms.
Fig.How GCRI, GRF and GRA share one field while the authorities decide. Design, not a record.
The working screen behind this subject: its structure, terms and states. Names are placeholders and values illustrative.
Card schemes, automated clearing houses, instant payment systems and real-time gross settlement systems, operated by central banks and private operators.
Central counterparties, central securities depositories and securities settlement systems that complete trades.
Financial messaging networks, trade repositories and the technology providers on which all of them rely.
Payments and Market Infrastructure frames are set by CPMI-IOSCO, FSB and CPMI and Central banks.
| Part | Channel Payments and Market Infrastructure studies |
|---|---|
| Payment systems | Settlement |
| CCPs | Clearing |
| CSDs | Securities |
| Providers | Messaging and cloud |
Shocks travel between these parts, and Payments and Market Infrastructure studies the links: What fails with a node? The evidence base is PFMI disclosures, site geography, statistics.
Financial market infrastructures manage credit, liquidity, legal, custody, general business and operational risks. Internationally recognized principles for financial market infrastructures, issued by global standard-setting bodies, set expectations for each, and central banks and supervisors oversee infrastructures against them. Settlement finality, the legal point at which a transfer becomes irrevocable, is central to limiting contagion.
Operational risk has become a leading concern. Infrastructures are expected to recover critical operations quickly after disruption, including from cyber attacks that may corrupt data. Meeting such expectations is hard when an attack could spread to backup systems, and when many infrastructures depend on the same providers.
The Global Risks Alliance (GRA) is a nonprofit business league for the financial services industry. It does not lend, underwrite, rate, invest, advise on or arrange transactions, introduce counterparties or take transaction-based pay, and readiness work is not approval. GRA does not operate, connect to or test any live payment system, and it assesses no individual institution. How stress moves through and beyond these infrastructures is described at financial-system transmission.
Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.
| Term | Definition |
|---|---|
| Transmission channel | The route by which a shock reaches financial institutions' balance sheets. |
| Financial market infrastructure | A system that clears, settles or records payments, securities or derivatives among participants. |
| Settlement finality | The point at which a transfer becomes irrevocable and unconditional in law. |
| Systemic risk | The risk of disruption to financial services caused by impairment of all or parts of the financial system, with serious consequences for the real economy, as the IMF, FSB and BIS define it. |
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.