LONDON, May 22 (Reuters) - A number of vulnerabilities in widely used short-term markets for funding companies allow stresses to be transmitted to the broader financial system during market turmoil, the global Financial Stability Board said on Wednesday.
The FSB published a report into the commercial paper (CP) and negotiable certificates of deposit (CD) markets, which totalled $4.7 trillion at the end of March last year.
"The high interconnectedness of CP and CD markets with other funding markets means that stress can be transmitted within the financial system and across borders, as experienced during the March 2020 market turmoil," the FSB said in a statement. (Reporting by Huw Jones; Editing by Jan Harvey)
