The Money Market Diagnostic Framework (MMDF) has been or is being implemented in over 10 countries across MENA, EECA and SSA. Results are confidential unless otherwise agreed with the local regulator. For insights into the full impact of Frontclear and its network on money market development, see the Impact Report 2019.

Here a snapshot of anonymized country-level results per building block and key observations:

1: current level of money market development

foreignparticipants money market segments (instruments) marketparticipants collateral in market operations benchmarkmarket rates informationfor the market yield curve country A country B country C 100 % 80 % 60 % 40 % 20 % 0 %

typical issues

  • (credit risk) segmentation amongst participants
  • lack of activity or liquidity in market segments
  • lack of a valid benchmark rate or index
  • lack of transparency regarding pricing and volumes traded

2: environment

CB paymentsystem processes payment system infrastructure post-tradeinfrastructure general legalinfrastructure legal infrastructureof derivatives monetary policyframework credit risk prudentialregulation country A country B country C 0 % 20 % 40 % 60 % 80 % 100 %

typical issues

  • monetary policy not conducive to market development
  • lack of adequate local market infrastructure
  • lack of enforceability of best practice transaction documentation under the local legal framework

3: central bank activities

reserve requirements system CB standing facilities CB communication CB windowsof operations counterparties collateral inCB operations aggregateliquidity fine-tuningoperations structuraloperations main instrument,key rate informationfor regulators country A country B country C 100 % 80 % 60 % 40 % 20 % 0 %

typical issues

  • design of central bank operations disincentivizes market trading
  • inconsistencies in the deployment of monetary policy instruments
  • lack of information in central bank forecasting models
  • lack of transparency to market participants on monetary policy implementation

4: resources

country A country B country C 0 % 20 % 40 % 60 % 80 % 100 % CB HR marketHR informationtechnologies

typical issues

  • insufficient staffing in the relevant units
  • lack of experience and/or knowledge regarding the use of money market products (e.g. repo, derivative products)
  • lack of experience and/or knowledge of industry best practices
  • lack of professional trading platforms and treasury software