PFMI implementation database
This is an online data repository of jurisdictions' implementation measures for the Principles for financial market infrastructures and associated CPMI and IOSCO assessment principle ratings. It complements the Level 2 assessment programme on the extent to which jurisdictions' implementation measures are complete and consistent with the international standards for payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.
Note that authorities may have updated their rules, regulations and policies since the assessment. For current implementation measures, please contact the relevant authority.
EU-EC,ESMA,ECB,EBA
- Principle ID 13.3
- Rating Consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should publicly disclose key aspects of its default rules and procedures.
Implementation measures
Regulation No 909/2014/EU (CSDR) Eurosystem Oversight Policy Framework T2S Oversight Framework
EU-EC,ESMA,ECB,EBA
- Principle ID 13.4
- Rating Consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should involve its participants and other stakeholders in the testing and review of the FMI’s default procedures, including any close-out procedures. Such testing and review should be conducted at least annually or following material changes to the rules and procedures to ensure that they are practical and effective.
Implementation measures
Regulation No 909/2014/EU (CSDR) ESMA Guidelines on CSD Participants default rules and procedures Eurosystem Oversight Policy Framework T2S Oversight Framework
EU-EC,ESMA,ECB,EBA
- Principle ID 15.0
- Rating Broadly consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should identify, monitor, and manage its general business risk and hold sufficient liquid net assets funded by equity to cover potential general business losses so that it can continue operations and services as a going concern if those losses materialise. Further, liquid net assets should at all times be sufficient to ensure a recovery or orderly wind-down of critical operations and services.
Implementation measures
Regulation No 909/2014/EU (CSDR) Commission Delegated Regulation (EU) 2017/390 Commission Delegated Regulation (EU) 2017/392 Eurosystem Oversight Policy Framework T2S Oversight Framework
Assessment comments (key conclusions and recommendations)
There is a lack of specificity in linking requirements for restructuring to the recovery plans that CSDs are required to have. The EU authorities are recommended to implement measures to address the gaps or inconsistencies related to KCs 2 and 3.
EU-EC,ESMA,ECB,EBA
- Principle ID 15.1
- Rating Consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should have robust management and control systems to identify, monitor, and manage general business risks, including losses from poor execution of business strategy, negative cash flows, or unexpected and excessively large operating expenses.
Implementation measures
Regulation No 909/2014/EU (CSDR) Eurosystem Oversight Policy Framework T2S Oversight Framework
EU-EC,ESMA,ECB,EBA
- Principle ID 15.2
- Rating Broadly consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should hold liquid net assets funded by equity (such as common stock, disclosed reserves, or other retained earnings) so that it can continue operations and services as a going concern if it incurs general business losses. The amount of liquid net assets funded by equity an FMI should hold should be determined by its general business risk profile and the length of time required to achieve a recovery or orderly wind-down, as appropriate, of its critical operations and services if such action is taken.
Implementation measures
Regulation No 909/2014/EU (CSDR) Commission Delegated Regulation (EU) 2017/390 Commission Delegated Regulation (EU) 2017/392 Eurosystem Oversight Policy Framework T2S Oversight Framework
Assessment comments (key conclusions and recommendations)
There is a lack of specificity in linking requirements for restructuring to the recovery plans that CSDs are required to have. It is unclear if the financial resources a CSD/SSS would need to hold to cover “restructuring” would be consistent with the financial resources it would need to hold to implement the recovery plan under KC 15.2.
EU-EC,ESMA,ECB,EBA
- Principle ID 15.3
- Rating Broadly consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should maintain a viable recovery or orderly wind-down plan and should hold sufficient liquid net assets funded by equity to implement this plan. At a minimum, an FMI should hold liquid net assets funded by equity equal to at least six months of current operating expenses. These assets are in addition to resources held to cover participant defaults or other risks covered under the financial resources principles. However, equity held under international risk-based capital standards can be included where relevant and appropriate to avoid duplicate capital requirements.
Implementation measures
Regulation No 909/2014/EU (CSDR) Commission Delegated Regulation (EU) 2017/390 Commission Delegated Regulation (EU) 2017/392 Commission Delegated Regulation (EU) 2018/1229 ESMA Guidelines on CSD participants default rules and procedures Eurosystem Oversight Policy Framework T2S Oversight Framework
Assessment comments (key conclusions and recommendations)
There is a lack of specificity in linking requirements for restructuring to the recovery plans that CSDs are required to have. It is unclear if the term “restructuring” fully covers the range of actions that may be included in a CSD/SSS’s recovery plan.
EU-EC,ESMA,ECB,EBA
- Principle ID 15.4
- Rating Consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
Assets held to cover general business risk should be of high quality and sufficiently liquid in order to allow the FMI to meet its current and projected operating expenses under a range of scenarios, including in adverse market conditions.
Implementation measures
Regulation No 909/2014/EU (CSDR) Commission Delegated Regulation (EU) 2017/390 Commission Delegated Regulation (EU) 2017/392 Eurosystem Oversight Policy Framework T2S Oversight Framework
EU-EC,ESMA,ECB,EBA
- Principle ID 15.5
- Rating Consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should maintain a viable plan for raising additional equity should its equity fall close to or below the amount needed. This plan should be approved by the board of directors and updated regularly.
Implementation measures
Regulation No 909/2014/EU (CSDR) Commission Delegated Regulation (EU) 2017/390 Eurosystem Oversight Policy Framework T2S Oversight Framework
EU-EC,ESMA,ECB,EBA
- Principle ID 16.0
- Rating Broadly consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should safeguard its own and its participants’ assets and minimise the risk of loss on and delay in access to these assets. An FMI’s investments should be in instruments with minimal credit, market, and liquidity risks.
Implementation measures
Regulation No 909/2014/EU (CSDR) Commission Delegated Regulation (EU) 2017/392 Eurosystem Oversight Policy Framework T2S Oversight Framework
Assessment comments (key conclusions and recommendations)
There is a potential minor gap regarding the full disclosure of a CSD’s investment strategy. The EU authorities are recommended to implement measures to address the minor gap or inconsistency related to KC 4.
EU-EC,ESMA,ECB,EBA
- Principle ID 16.1
- Rating Consistent
Implementation measure cut-off date: 29-Oct-2019
Assessment rating date: 29-Oct-2019
Principle
An FMI should hold its own and its participants’ assets at supervised and regulated entities that have robust accounting practices, safekeeping procedures, and internal controls that fully protect these assets.
Implementation measures
Regulation No 909/2014/EU (CSDR) Commission Delegated Regulation (EU) 2017/390 Commission Delegated Regulation (EU) 2017/392 Eurosystem Oversight Policy Framework T2S Oversight Framework
Description of filters
Jurisdiction
This filter limits the search results to selected jurisdictions. The available jurisdictions represent assessments that have been completed to date. The table below provides also a pdf of key conclusions and recommendations for all Principles of a given jurisdiction.
| Jurisdiction and relevant authorities | Assessments and comments |
|---|---|
Australia RBA: Reserve Bank of Australia | |
Brazil BCB: Central Bank of Brazil | |
Canada | |
European Union ESMA: European Securities and Markets Authority | |
Hong Kong SAR HKMA: Hong Kong Monetary Authority | |
Japan | |
Singapore | |
Switzerland FINMA: Swiss Financial Market Supervisory Authority | |
Turkey CMB: Capital Markets Board of Türkiye | |
United Kingdom | |
United States CFTC: Commodity Futures Trading Commission |
FMI type
This filter limits the search results to the selected FMI types. FMIs may be subject to different regulatory, supervisory and oversight regimes depending on their organisation, function and design.
PS: Payment system
A set of instruments, procedures and rules for the transfer of funds between or among participants; the system includes the participants and the entity operating the arrangement.
CSD/SSS: Central securities depository / Securities settlement system
CSDs are entities that provide securities accounts, central safekeeping services and asset services, which may include the administration of corporate actions and redemptions, and play an important role in helping to ensure the integrity of securities issues (that securities are not accidentally or fraudulently created or destroyed or their details changed). The precise activities of a CSD vary based on jurisdiction and market practices.
SSS are entities that enable securities to be transferred and settled by book entry according to a set of predetermined multilateral rules. Such systems allow transfers of securities either free of payment or against payment. Typically, a CSD also operates an SSS.
CCP: Central counterparty
An entity that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the performance of open contracts.
TR: Trade repository
An entity that maintains a centralised electronic record (database) of transaction data.
Principle or key consideration ID
This filter limits the search results to selected principles and key considerations. Each principle includes a headline standard and a list of key considerations that further explain the headline standard. The principles are listed below. A detailed list of key considerations is available in the CPMI-IOSCO Principles for financial market infrastructures.
Principle rating
This filter limits the search results to selected principle rating(s) used in the L2 assessments. The ratings reflect conditions at the time of the assessment, and are built on key conclusions that reflect CPMI and IOSCO's collective expert judgment regarding the impact of identified gaps and/or shortcomings. Ratings are determined for each principle after the jurisdiction's legislative and regulatory framework, including policy statements, as relevant, was compared against the corresponding content of the PFMI.
The jurisdiction’s regulatory framework is consistent with the Principle. The assessment has identified no gaps or shortcomings, or only a few gaps and/or shortcomings that have no material impact on completeness and/or consistency.
The jurisdiction’s regulatory framework is broadly consistent with the Principle. The assessment has identified gaps and/or shortcomings that have a minor impact on completeness and/or consistency.
The jurisdiction’s regulatory framework is partly consistent with the Principle. The assessment has identified gaps and/or shortcomings that have a significant impact on completeness and/or consistency.
The jurisdiction’s regulatory framework is not consistent with the Principle. The assessment has identified gaps and/or shortcomings that have a major impact on completeness and/or consistency.
This status corresponds to the case where no relevant FMI exists that is within the scope of the Principles. A rating of “NA” will be indicated only if no relevant regulatory measures are being taken and no such FMI is expected to develop within the jurisdiction.