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.
US-CFTC
- Principle ID 1.3
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have a well-founded, clear, transparent, and enforceable legal basis for each material aspect of its activities in all relevant jurisdictions.
Implementation measures
CFTC regulations 17 C.F.R. 39.21; 39.27; 39.40
US-CFTC
- Principle ID 1.4
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have a well-founded, clear, transparent, and enforceable legal basis for each material aspect of its activities in all relevant jurisdictions.
Implementation measures
CFTC regulations 17 C.F.R. 39.27(a); 39.27(b); 39.40
US-CFTC
- Principle ID 1.5
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have a well-founded, clear, transparent, and enforceable legal basis for each material aspect of its activities in all relevant jurisdictions.
Implementation measures
CFTC regulations 17 C.F.R. 39.27(b); 39.27(c); 39.40; 40.10(b)
US-CFTC
- Principle ID 10.0
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should clearly state its obligations with respect to the delivery of physical instruments or commodities and should identify, monitor, and manage the risks associated with such physical deliveries.
Implementation measures
The standards set forth in Principle 10 are addressed in CFTC regulation 17 C.F.R. 39.14. The regulation is available at the following link: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=80b1d65a7dda6acc83f8c6154e6630eb&h=L&r=SECTION&n=17y1.0.1.1.32.2.7.6
Assessment comments (key conclusions and recommendations)
The implementation measures of the CFTC are consistent with Principle 10, although there are some gaps or shortcomings with key consideration 2 that have no material impact on completeness or consistency.
US-CFTC
- Principle ID 10.1
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should clearly state its obligations with respect to the delivery of physical instruments or commodities and should identify, monitor, and manage the risks associated with such physical deliveries.
Implementation measures
CFTC regulations 17 C.F.R. 39.14(g)
US-CFTC
- Principle ID 10.2
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should clearly state its obligations with respect to the delivery of physical instruments or commodities and should identify, monitor, and manage the risks associated with such physical deliveries.
Implementation measures
CFTC regulations 17 C.F.R. 39.14(g)
Assessment comments (key conclusions and recommendations)
The CFTC rules do not explicitly state that a CCP should manage the risks and costs associated with the ‘storage’ of physical instruments or commodities. Nevertheless, the rules state that a CCP should ensure that the risks associated with its obligations are managed, including those arising from making or receiving physical instruments.
US-CFTC
- Principle ID 12.0
- Rating Partly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
If an FMI settles transactions that involve the settlement of two linked obligations (for example, securities or foreign exchange transactions), it should eliminate principal risk by conditioning the final settlement of one obligation upon the final settlement of the other.
Implementation measures
Derivatives Clearing Organizations are not exchange-of-value settlement systems. Accordingly, this Principle is not addressed in the CFTC’s CCP regulatory framework.
Assessment comments (key conclusions and recommendations)
The implementation measures of the CFTC are partly consistent with Principle 12. The overall rating has been influenced by the lack of explicit requirements in CFTC rules that implement key consideration 1. Recommendation: The CFTC is recommended to implement measures which address the gaps or inconsistencies identified, specifically those related to key consideration 1. CFTC is recommended to implement explicit requirements for exchange-of-settlement systems in line with Principle 12 or to disclose its interpretation of regulation 39.13 (a) and 39.13 (f) as implementing key consideration 1. This could entail describing the means used to assess the appropriateness of settlement mechanisms implemented.
US-CFTC
- Principle ID 12.1
- Rating Partly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
If an FMI settles transactions that involve the settlement of two linked obligations (for example, securities or foreign exchange transactions), it should eliminate principal risk by conditioning the final settlement of one obligation upon the final settlement of the other.
Implementation measures
CFTC regulations 17 C.F.R. 39.13 (a), (f)
Assessment comments (key conclusions and recommendations)
While certain activities that CCPs perform fall under the category of exchange-of-value settlement services, there is no explicit requirement in CFTC rules that implements key consideration 1. CFTC regulation 39.13 (a) sets that a CCP must ensure it has the requisite “ability to manage the risks associated with discharging the responsibilities of the DCO through the use of appropriate tools and procedures,” and regulation 39.13 (f) sets that a CCP shall utilize “risk control mechanisms [to] limit its exposure to potential losses from defaults by clearing members”. It is also understood from CFTC that these provisions would require a CCP engaged in an exchange -of-value settlement service to ensure that settlement of one obligation occurs if and only if the final settlement of the linked obligation also occurs. Such interpretation would be reinforced by regulation 39.40, which states that Part 39 of CFTC’s regulations is intended to establish standards that are consistent with the Principles and should be interpreted in that context. In considering whether these provisions adequately implement key consideration 1, it is observed that Principle 12 is very specific that principal risk in exchange-of-value settlements should be managed by using a delivery-versus-payment (DvP; or payment-versus-payment (PvP)/delivery-versus-delivery (DvD) mechanism. Regulation 39.13 refers to the use of ’appropriate tools and procedures’, which is far more general and could conceivably be met by the use of measures other than DvP (or PvP/DvD). Accordingly, notwithstanding the general provisions of Regulations 39.13 and 39.40, the absence of explicit requirements in this area or a clearly disclosed interpretation constitutes a gap in the SIDCO regime.
US-CFTC
- Principle ID 13.0
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have effective and clearly defined rules and procedures to manage a participant default. These rules and procedures should be designed to ensure that the FMI can take timely action to contain losses and liquidity pressures and continue to meet its obligations.
Implementation measures
The standards set forth in Principle 13 are addressed in CFTC regulations 17 C.F.R. 39.16, 39.21, 39.32, and 39.35. The regulations may be found at the following links: Regulation 39.16: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=80b1d65a7dda6acc83f8c6154e6630eb&h=L&r=SECTION&n=17y1.0.1.1.32.2.7.8 Regulation 39.21: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=80b1d65a7dda6acc83f8c6154e6630eb&h=L&r=SECTION&n=17y1.0.1.1.32.2.7.13 Regulation 39.32: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=6950097b7bdc09974f8a28f30f8b676d&h=L&r=SECTION&n=17y1.0.1.1.32.3.7.3 Regulation 39.35: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=8b4bac7ee052957af28c8bec4bf38293&h=L&r=SECTION&n=17y1.0.1.1.32.3.7.6
US-CFTC
- Principle ID 13.1
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have effective and clearly defined rules and procedures to manage a participant default. These rules and procedures should be designed to ensure that the FMI can take timely action to contain losses and liquidity pressures and continue to meet its obligations.
Implementation measures
CFTC regulations 17 C.F.R. 39.16(a), (b), (c)(1)-(3), (d); 39.35(a), (b)
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.