This report describes the structure and functioning of commercial paper (CP) and negotiable certificates of deposit (CD) markets in core funding jurisdictions (EU, Japan, UK, US). It considers the vulnerabilities in these markets and assesses the relative merits of potential market reforms by industry and public authorities to address these vulnerabilities.

This work forms part of the FSB’s work programme on enhancing the resilience of non-bank financial intermediation (NBFI), and follows up on the 2021 FSB report with policy proposals to enhance money market fund (MMF) resilience. The FSB’s 2021 report identified some structural vulnerabilities in short-term funding markets, as well as a lack of granular data in parts of those markets. It also noted that policies aimed at enhancing the resilience of MMFs could be accompanied by, among other things, measures that aim at improving the functioning of the underlying short-term funding markets.