Financial Market Infrastructure

Welcome to KPMG’s dedicated hub for developments in the Financial Market Infrastructure (FMI) sector including exchanges and trading venues, payment services providers, data providers, and clearing & settlement houses.

FMIs are going through a period of significant change as their importance across the financial services ecosystem grows. They have a critical role to play in making financial transactions more efficient and helping to manage risk in the system. For example, central counterparties (CCPs) or clearing houses simplify the network of exposures in derivatives trading by enabling the 'multilateral netting' of financial exposures and payments.

Across the financial sector, the need for scale and efficiency has increased in FMIs and is likely to lead to opportunities for consolidation. Acquisitions in the FMI space could also provide a way to access and utilise fintech. 

However, against this backdrop of opportunities, regulatory and supervisory scrutiny of FMIs is increasing due to the developing complexity and interconnectedness of markets and FMIs critical role in the smooth and stable functioning of markets. 

Market data is becoming increasingly important to financial market participants in informing trading and investment strategies and meeting regulatory and disclosure obligations. FMI operations produce this data and it can drive growth in their revenues. Robust data management and security is key.

KPMG firms have a wealth of experience across financial services, offering deal advisory, tax, legal and regulatory compliance expertise and helping to implement transformational, technology and organisational change. In the FMI sector, this experience can help clients grow, through acquisition and integration, launch new businesses and bring efficiencies to existing processes. Change management and assurance services help FMIs comply with growing regulatory expectations. KPMG professionals can also help clients to implement new technology to enable their businesses to be more resilient and secure.

The following materials cover key areas of change in the FMI sector, to help firms digest more easily some of the complex challenges they face.