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 8.2
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should provide clear and certain final settlement, at a minimum by the end of the value date. Where necessary or preferable, an FMI should provide final settlement intraday or in real time.
Implementation measures
CFTC regulations 17 C.F.R. 39.14(b)
Assessment comments (key conclusions and recommendations)
The regulation states that settlement with clearing members shall occur at least once each business day or intraday, which does not mean or imply in itself that each transaction will be settled by no later than end of the value date. However, CFTC regulation 39.40 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. Thus, as relevant here, it is understood that CFTC regulation 39.14 should be read to include the requirement that the once-a-day settlement shall be completed no later than the end of the value date consistent with the Principles. The implementation measure implies that there could be exceptions to the referenced rule made by the CFTC. However, it has been made clear by CFTC that exceptions would be only for some CCPs which are not SIDCOs or Subpart C DCOs and clearing products in the physical market.
US-CFTC
- Principle ID 8.3
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should provide clear and certain final settlement, at a minimum by the end of the value date. Where necessary or preferable, an FMI should provide final settlement intraday or in real time.
Implementation measures
CFTC regulations 17 C.F.R. 39.12(b)(6); 39.14(d)
US-CFTC
- Principle ID 9.0
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should conduct its money settlements in central bank money where practical and available. If central bank money is not used, an FMI should minimise and strictly control the credit and liquidity risk arising from the use of commercial bank money.
Implementation measures
The standards set forth in Principle 9 are addressed in CFTC regulation 17 C.F.R. 39.14 and 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 9, although there are some gaps or shortcomings with key considerations 1 and 4 that have no material impact on completeness or consistency. Recommendation: 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 9.1
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should conduct its money settlements in central bank money where practical and available. If central bank money is not used, an FMI should minimise and strictly control the credit and liquidity risk arising from the use of commercial bank money.
Implementation measures
Pursuant to regulations that were recently promulgated by the Board, the two derivative clearing organizations that have been designated as systemically important by the Financial Stability Oversight Council may receive account services, from a Federal Reserve Bank, subject to successful completion of an application process. Each is in the process of applying for such services.
Assessment comments (key conclusions and recommendations)
There is no requirement for CCPs to apply for account services with the central bank and to use them if the application process is successfully completed. In the context of 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, it is understood that, as relevant here, the requirements for all CCPs to protect and ensure the safety of funds and assets as well as to minimize risk of loss or of delay in access established in CFTC regulation 39.15 should be read to require the use by CCPs of central bank accounts and services, where practical and available, consistent with Principle 9 Key Consideration 1.
US-CFTC
- Principle ID 9.2
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should conduct its money settlements in central bank money where practical and available. If central bank money is not used, an FMI should minimise and strictly control the credit and liquidity risk arising from the use of commercial bank money.
Implementation measures
CFTC regulations 17 C.F.R. 39.14(c)
US-CFTC
- Principle ID 9.3
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should conduct its money settlements in central bank money where practical and available. If central bank money is not used, an FMI should minimise and strictly control the credit and liquidity risk arising from the use of commercial bank money.
Implementation measures
CFTC regulations 17 C.F.R. 39.14(c); 39.36(g)
US-CFTC
- Principle ID 9.4
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should conduct its money settlements in central bank money where practical and available. If central bank money is not used, an FMI should minimise and strictly control the credit and liquidity risk arising from the use of commercial bank money.
Implementation measures
CFTC regulations 17 C.F.R. 39.40
Assessment comments (key conclusions and recommendations)
There is no specific implementation measure for situations where a CCP would conduct settlement on its own books. However, in practice, CCPs conduct settlements through commercial settlement banks and do not offer cash settlement services to their clearing members. In the hypothetical situation in which a CCP seeks to conduct money settlement on its books, the CCP would need to adopt material rule changes which would require advance notice be given to the CFTC and subsequent review of the new rules. In any rule changes, the CFTC would seek, consistent with, inter alia, regulation 39.40, to ensure that the CCP took appropriate steps to adopt a structure that would protect the CCP against relevant risks and that the CCP observed all requirements under Principle 9 of the Principles.
US-CFTC
- Principle ID 9.5
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should conduct its money settlements in central bank money where practical and available. If central bank money is not used, an FMI should minimise and strictly control the credit and liquidity risk arising from the use of commercial bank money.
Implementation measures
CFTC regulations 17 C.F.R. 39.14(b), (d)
US-CFTC
- Principle ID 1.0
- Rating Partly 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
The CEA is available at the following link: http://www.house.gov/legcoun/Comps/COMEX_NEW.pdf 17 C.F.R. 40 is available at the following link: http://www.ecfr.gov/cgi-bin/text-idx?SID=470d2004ef0ed95c2407dd26dc37af2b&node=17:1.0.1.1.33&rgn=div5 17 C.F.R. 49 is available at the following link: http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=6b869c925c838bbfb47ee4a8adb078cd&n=17y2.0.1.1.8&r=PART&ty=HTML
Assessment comments (key conclusions and recommendations)
The implementation measures of the CFTC are partly consistent with Principle 1. The overall rating has been influenced by the absence of measures implementing key considerations 1 and 5 and gaps or shortcomings in the implementation measures for key consideration 4. Recommendation: The CFTC is recommended to implement measures which address the gaps or inconsistencies identified, specifically those related to key considerations 1, 4 and 5.
US-CFTC
- Principle ID 1.1
- Rating Partly 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
CEA Sections 1a(48), 21(a)(1)(A), 21(a)(3)(A)(i)-(ii), 21(f)(2), 21(h)
Assessment comments (key conclusions and recommendations)
The CEA provides the legal basis for TRs but this does not include a requirement that the TRs themselves have a legal basis that provides a high degree of certainty for each material aspect of the TR’s activities in all relevant jurisdictions.
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.