Updates on the Work on Market Fragmentation
This report provides progress updates for the ongoing work on market fragmentation by the FSB and standard-setting bodies. The report was delivered to the G20 Finance Ministers and Central Bank Governors ahead of their meeting in Washington D.C. in mid-October.
In its June report on market fragmentation, the FSB identified four areas for further work to address market fragmentation: (i) deference; (ii) pre-positioning of capital and liquidity; (iii) regulatory and supervisory coordination and information-sharing; and (iv) market fragmentation as part of the evaluation of reforms, starting with the FSB’s ongoing “too-big-to-fail” evaluation.
Since the June 2019 Osaka G20 Summit, the FSB, in collaboration with the standard-setting bodies, have identified steps to be taken in each of these four areas. The update provides information on current plans, and steps already taken, to implement the work in the four areas.