FMIs play an essential role in the sound and efficient functioning of the financial system and in the operation of the real economy. Many transactions in the financial system and all electronic payments ultimately rely on the operation of one or more FMIs. As a consequence, it is not uncommon for large FMIs to handle transactions worth billions of dollars on a daily basis. FMIs also play a key role in supporting the efficient operation of the financial system by reducing transaction costs; reducing counterparty, custodial, and other risks; and fostering transparency.