The Financial Stability Board (FSB) published draft guidance on Wednesday that aims to prevent central counterparties (CCPs), which are a critical part of financial market infrastructure, from developing into a source of systemic risk.

The FSB’s draft guidance focuses on the issue of resolving and resolution planning for CCPs. Following the financial crisis, regulators adopted reforms to encourage the use of CCPs in the over-the-counter (OTC) derivatives markets. Now, regulators are also seeking to prevent these firms from becoming systemic risks in their own right.

“With central counterparties an increasingly important part of the financial system, particularly following post-crisis reforms to mandate central clearing of certain standardized over-the-counter derivatives,” the FSB’s guidance says, “it is vital that CCPs do not themselves become a new source of ‘too-big-to-fail risk’.”

The guidance is intended to help authorities and jurisdictions implement effective resolution regimes and develop credible resolution strategies and plans for CCPs.

“CCPs are an integral part of the financial system and play an important role in mitigating risks to the financial system,” says Elke König, chairwoman of the FSB Resolution Steering Group and chair of the European Single Resolution Board, in a statement.

“They have grown substantially over the last years. The failure of a CCP would have a significant impact on financial stability,” she adds. “It is essential that authorities have effective resolution planning arrangements in place, including legal powers and tools to take action in a crisis. Once finalized the guidance will provide an internationally agreed standard for CCP resolution.”

The FSB is seeking comments on its proposals by March 13. The group also says it will carry out further work on the financial resources for CCP resolution and is aiming to decide whether it should also develop guidance on this specific issue too by the end of 2018.