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 4.5
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should effectively measure, monitor, and manage its credit exposures to participants and those arising from its payment, clearing, and settlement processes. An FMI should maintain sufficient financial resources to cover its credit exposure to each participant fully with a high degree of confidence. In addition, a CCP that is involved in activities with a more-complex risk profile or that is systemically important in multiple jurisdictions should maintain additional financial resources sufficient to cover a wide range of potential stress scenarios that should include, but not be limited to, the default of the two participants and their affiliates that would potentially cause the largest aggregate credit exposure to the CCP in extreme but plausible market conditions. All other CCPs should maintain additional financial resources sufficient to cover a wide range of potential stress scenarios that should include, but not be limited to, the default of the participant and its affiliates that would potentially cause the largest aggregate credit exposure to the CCP in extreme but plausible market conditions.
Implementation measures
CFTC regulations 17 C.F.R. 39.13(h)(3)(i)–(ii); 39.36(a)(1)-(3), (a)(5), (e)
US-CFTC
- Principle ID 4.6
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should effectively measure, monitor, and manage its credit exposures to participants and those arising from its payment, clearing, and settlement processes. An FMI should maintain sufficient financial resources to cover its credit exposure to each participant fully with a high degree of confidence. In addition, a CCP that is involved in activities with a more-complex risk profile or that is systemically important in multiple jurisdictions should maintain additional financial resources sufficient to cover a wide range of potential stress scenarios that should include, but not be limited to, the default of the two participants and their affiliates that would potentially cause the largest aggregate credit exposure to the CCP in extreme but plausible market conditions. All other CCPs should maintain additional financial resources sufficient to cover a wide range of potential stress scenarios that should include, but not be limited to, the default of the participant and its affiliates that would potentially cause the largest aggregate credit exposure to the CCP in extreme but plausible market conditions.
Implementation measures
CFTC regulations 17 C.F.R. 39.36(a)(4)
US-CFTC
- Principle ID 4.7
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should effectively measure, monitor, and manage its credit exposures to participants and those arising from its payment, clearing, and settlement processes. An FMI should maintain sufficient financial resources to cover its credit exposure to each participant fully with a high degree of confidence. In addition, a CCP that is involved in activities with a more-complex risk profile or that is systemically important in multiple jurisdictions should maintain additional financial resources sufficient to cover a wide range of potential stress scenarios that should include, but not be limited to, the default of the two participants and their affiliates that would potentially cause the largest aggregate credit exposure to the CCP in extreme but plausible market conditions. All other CCPs should maintain additional financial resources sufficient to cover a wide range of potential stress scenarios that should include, but not be limited to, the default of the participant and its affiliates that would potentially cause the largest aggregate credit exposure to the CCP in extreme but plausible market conditions.
Implementation measures
CFTC regulations 17 C.F.R. 39.16(a); 39.35(a)
US-CFTC
- Principle ID 5.0
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI that requires collateral to manage its or its participants’ credit exposure should accept collateral with low credit, liquidity, and market risks. An FMI should also set and enforce appropriately conservative haircuts and concentration limits.
Implementation measures
The standards set forth in Principle 5 are addressed in CFTC regulations 17 C.F.R. 1.25, 1.49, 39.11, 39.13, 39.14, 39.15, 39.33, and 39.36. The regulations are available at the following links: Regulation 1.25: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=81fae56e1d818620874f4f2db46d8671&ty=HTML&h=L&n=17y1.0.1.1.1&r=PART%2317:1.0.1.1.1.0.4.24#17:1.0.1.1.1.0.4.24 Regulation 1.49: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=81fae56e1d818620874f4f2db46d8671&ty=HTML&h=L&n=17y1.0.1.1.1&r=PART%2317:1.0.1.1.1.0.4.24#17:1.0.1.1.1.0.6.43 Regulation 39.11: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=2126a23d5ef85fab6ef10a3a898280b8&h=L&r=SECTION&n=17y1.0.1.1.32.2.7.3; Regulation 39.13: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=2126a23d5ef85fab6ef10a3a898280b8&ty=HTML&h=L&r=SECTION&n=17y1.0.1.1.32.2.7.5 Regulation 39.14: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=2126a23d5ef85fab6ef10a3a898280b8&ty=HTML&h=L&r=SECTION&n=17y1.0.1.1.32.2.7.5 Regulation 39.15: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=22f77fcf888b8732ca305462f985b01d&h=L&r=SECTION&n=17y1.0.1.1.32.2.7.7 Regulation 39.33: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=0219c263077a29de96ebfe3534f53338&h=L&r=SECTION&n=17y1.0.1.1.32.3.7.4 Regulation 39.36: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=22f77fcf888b8732ca305462f985b01d&h=L&r=SECTION&n=17y1.0.1.1.32.3.7.7
Assessment comments (key conclusions and recommendations)
The implementation measures of the CFTC are consistent with Principle 5; however, there are gaps or shortcomings with key consideration 6. Gaps or shortcomings identified with other key considerations have no material impact on completeness or consistency Recommendation: The CFTC is recommended to implement measures which address the gaps or inconsistencies identified, specifically those related to key consideration 6. The CFTC is recommended to make public the intended interpretation of matters identified in the course of this assessment, and other matters as they may come to light, that rely on regulation 39.40 to clarify their consistency with the Principles.
US-CFTC
- Principle ID 5.1
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI that requires collateral to manage its or its participants’ credit exposure should accept collateral with low credit, liquidity, and market risks. An FMI should also set and enforce appropriately conservative haircuts and concentration limits.
Implementation measures
CFTC regulations 17 C.F.R. 39.13(g)(10)-(14)
Assessment comments (key conclusions and recommendations)
The CFTC’s collateral eligibility criteria are imposed only on assets for initial margins accepted by a CCP, but not on other financial resources that may be accepted by a CCP (e.g. assets for default fund contributions). It is noted that not all financial resources available to satisfy the requirements of paragraph 39.11(a)(1) (and 39.33(a)) of this section are prefunded. Regulations 39.11(e)(1)(i), 39.33(c)(3) and 39.33(c)(4) with respect to liquidity have – given the interdependence of liquidity with credit and market risk – the effect of requiring that default resources have low credit, liquidity and market risks. However, pursuant to regulation 39.40, the liquidity requirements under regulation 39.11(e)(1)(i) would intend that default fund assets also had low credit and market risks. It should also be noted that contrary to the intended interpretation of key consideration 1, the CFTC rules would permit a CCP to accept letters of credit as initial margin for futures and options on futures, notwithstanding that these instruments would not be acceptable collateral for swaps.
US-CFTC
- Principle ID 5.2
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI that requires collateral to manage its or its participants’ credit exposure should accept collateral with low credit, liquidity, and market risks. An FMI should also set and enforce appropriately conservative haircuts and concentration limits.
Implementation measures
CFTC regulations 17 C.F.R. 39.13(g)(11)-(14); 39.36(a)(1)-(5), (f)
US-CFTC
- Principle ID 5.3
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI that requires collateral to manage its or its participants’ credit exposure should accept collateral with low credit, liquidity, and market risks. An FMI should also set and enforce appropriately conservative haircuts and concentration limits.
Implementation measures
CFTC regulations 17 C.F.R. 39.13(g)(12); 39.36
Assessment comments (key conclusions and recommendations)
In terms of completeness, it is noted that the text does not refer to “reducing the need for pro-cyclical adjustments.” This shortcoming may be addressed by CFTC rule 39.40 which states that Part 39 of the CFTC’s regulations is intended to establish standards that are consistent with the Principles and should be interpreted in that context.
US-CFTC
- Principle ID 5.4
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI that requires collateral to manage its or its participants’ credit exposure should accept collateral with low credit, liquidity, and market risks. An FMI should also set and enforce appropriately conservative haircuts and concentration limits.
Implementation measures
CFTC regulations 17 C.F.R. 1.25(b)(3)(i)-(v); 39.13(g)(13)
US-CFTC
- Principle ID 5.5
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI that requires collateral to manage its or its participants’ credit exposure should accept collateral with low credit, liquidity, and market risks. An FMI should also set and enforce appropriately conservative haircuts and concentration limits.
Implementation measures
CFTC regulations 17 C.F.R. 1.49(c), (d) and (e); 39.27(c); 39.33(c)(2)
Assessment comments (key conclusions and recommendations)
In terms of completeness, it is noted that the text does not refer to mitigating risks associated with cross-border collateral and their use in a timely manner. This shortcoming may be addressed by CFTC rule 39.40 which states that Part 39 of the CFTC’s regulations is intended to establish standards that are consistent with the Principles and should be interpreted in that context.
US-CFTC
- Principle ID 5.6
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI that requires collateral to manage its or its participants’ credit exposure should accept collateral with low credit, liquidity, and market risks. An FMI should also set and enforce appropriately conservative haircuts and concentration limits.
Implementation measures
CFTC regulations 17 C.F.R. 39.13(g)(8)(E)(iii), (g)(10)-(14); 39.15(a), (c), (e); 39.36(f)
Assessment comments (key conclusions and recommendations)
While there are various rules and requirements on the handling of the financial resources by a CCP, there are no explicit references to the need for a collateral management system that is well-designed and operationally flexible. This shortcoming is not fully addressed by CFTC rule 39.40.
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.