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 latest Impact Report.
Here is a snapshot of anonymized country-level results per building block and key observations:
1: current level of money market development
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
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
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
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
