Since the Great Financial Crisis (GFC), non-bank financial institutions (NBFIs) have considerably expanded their footprint in the global financial system. While NBFIs provide diversification benefits to the financial system, they have also become a major source of financial instability and have attracted increasing policy attention (Carstens (2021); Aramonte et al (2022)). Of particular concern to policymakers are “highly leveraged NBFIs” which, through their leverage, concentration of exposures, liquidity mismatches and interconnectedness, can magnify and propagate shocks through the financial system, as seen during the collapse of LTCM (BIS (1999); Edwards (1999)) and Archegos (ESMA (2022a); FSB (2022a)).