November 14, 2009 in Bank of International Settlements
What are interdependencies, and Why do they matter?
Interdependencies arise when the settlement flows, operational processes or risk management procedures of one system are related to those of other systems
Interdependencies potentially can simultaneously:
•Improve the safety and efficiency of payment and settlement processes
•Allow financial disruptions to be passed more easily and more quickly across systems, their participants and related markets, accentuating their role in transmitting disruptions (Ferguson report)