ECB report on the lessons learned from the financial crisis with regard to the functioning of european financial market infrastructures

The ECB has published a report focusing on the impact of the financial crisis on the functioning of European financial market infrastructures, including systemically important payment systems, central counterparties, and securities settlement systems. The report focuses on the challenges that European financial market infrastructures and participating financial institutions faced during the financial crisis with respect to: (1) information flows following a default; (2) default management; (3) behavioural factors that affected market liquidity conditions adversely; and (4) issues relating to OTC markets.
The report also identifies procedures and rules that might be enhanced so that financial market infrastructures, their participants and relevant public authorities are better equipped to cope with similar events in the future.