The Federal Reserve Bank of New York has also been deeply involved in efforts to reduce foreign exchange settlement risk -- efforts that should further serve to improve market efficiency and overall financial stability. In October 1994, the New York Fed-sponsored Foreign Exchange Committee issued a major report on “Reducing Foreign Exchange Settlement Risk.” The Bank has also been working actively in this area with other central banks through the G-10 central bank Committee on Payment and Settlement Systems, or CPSS, which I have had the pleasure to chair in recent years. Building upon the work of the New York Foreign Exchange Committee, the CPSS published a document in March of last year, often referred to as the Allsopp report, that contains a comprehensive strategy outlining how the public and private sectors can work together to reduce foreign exchange settlement risk. The strategy was endorsed by the G-10 central bank governors and calls for specific action on the part of individual banks and industry groups. A survey conducted by the CPSS last autumn indicates that individual banks are answering the G-10 governors’ call for action. Many banks have made a good start in improving their ability to measure, manage, control, and net their bilateral settlement exposures, and they plan to push these efforts even further over the next year. While this is a very encouraging beginning, we can’t ignore the fact that more work must be done by individual banks.

Proposal for a Regulation on digital operational resilience for the financial sector6 The Regulation contains the following basic concepts: - introducing requirements for the management by financial entities of the ICT-related risks and for the reporting to the competent authorities of major ICT-related incidents and digital operational resilience testing; - sharing information on cyber threats and vulnerabilities; - prescribing measures for the sound management by financial entities of the risk related to ICT third-party service providers; - introducing requirements for the contractual arrangements between ICT third-party service providers and financial entities; - establishing an oversight framework for critical ICT third-party providers when providing services to financial entities. 5.2. Proposal for a Regulation on Markets in Crypto-assets7 The Regulation defines the notion ‘crypto-asset’8 and lists the main types of cryptoassets, distinguishing between three sub-categories of crypto-assets: - Asset-referenced tokens9. Such tokens may be offered to the public only by credit institutions authorised to operate in the EU or by entities which hold the authorisation referred 6  https://eur-lex.europa.eu/legal-content/BG/TXT/HTML/?uri=CELEX:52020PC0595 https://eur-lex.europa.eu/legal-content/BG/TXT/HTML/?uri=CELEX:52020PC0593 8 ‘Crypto-asset’ means a digital representation of value or rights which may be transferred and stored electronically, using distributed ledger technology or similar technology; 7  4  to in the Regulation. However, issuers should always draw up and publish a crypto-asset white paper – a special information document which must comply with mandatory content and form requirements.