Implementation monitoring of PFMI: Level 2 assessment report for Singapore

July 2017

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) continue to closely monitor the implementation of the Principles for financial market infrastructures (PFMI). The principles within the PFMI (the Principles) set expectations for the design and operation of key financial market infrastructures (FMIs) to enhance their safety and efficiency, and, more broadly, to limit systemic risk and foster transparency and financial stability. The Principles apply to all systemically important payment systems (PSs), central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs) and trade repositories (TRs) (collectively FMIs). These FMIs collectively clear, settle and record transactions in financial markets. In line with the G20's expectations, CPMI and IOSCO members have committed themselves to implementing and applying the PFMI in their respective jurisdictions.

This report presents the conclusions drawn by the CPMI and IOSCO from a Level 2 assessment of whether, and to what degree, the legal, regulatory and oversight frameworks, including rules and regulations, any relevant policy statements, or other forms of implementation applied to systemically important PSs, CSDs/SSSs, CCPs and TRs in Singapore, are complete and consistent with the Principles.

The work on the Level 2 assessment was carried out as a peer review from August 2016 to May 2017. The assessment reflects the status of Singapore's legal, regulatory and oversight framework as of 15 July 2016. Accordingly, assessment ratings reflect the implementation measures in place as of 15 July; other measures that were introduced after this date, or other material developments, are noted where relevant but were not considered in assigning ratings of consistency.

The Monetary Authority of Singapore (MAS) is the sole authority responsible for regulation, supervision and oversight of FMIs in Singapore.

The assessment found that Singapore has consistently adopted all but one of the Principles across FMI types. For PSs, CSDs/SSSs and CCPs, all the Principles have been implemented in a complete and consistent manner. For TRs, all the Principles, except for Principle 24 (disclosure of market data by trade repositories), have been implemented in a complete and consistent manner. Some gaps were observed between the regulatory framework in Singapore and Principle 24. It is acknowledged that MAS is actively considering appropriate requirements for TRs to publish the data in a manner that will help to achieve the objectives of the public disclosure.