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-SEC
- Principle ID 15.5
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
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
See above citations to the Exchange Act and proposed Rule 17Ad-22(e)(15)(iii) thereunder in response to Key Consideration 1.
US-SEC
- Principle ID 16.0
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
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
The standards in Principle 16 are addressed by the following statutory provisions, rules, and proposed rules: Section 17A of the Exchange Act, 15 U.S.C. § 78q-1: http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78q-1.pdf Section 19 of the Exchange Act, 15 U.S.C. § 78s: http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78s.pdf 17 C.F.R. § 240.17Ad-22(d)(3): http://www.gpo.gov/fdsys/pkg/CFR-2013-title17-vol3/pdf/CFR-2013-title17-vol3-sec240-17Ad-22.pdf Proposed Rule 17Ad-22(e)(16): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf
Assessment comments (key conclusions and recommendations)
Recommendation: The SEC is recommended to implement measures which address the gaps or inconsistencies identified, specifically those related to key considerations 3 and 4. Key conclusion: The proposed implementation measures of the SEC are broadly consistent with Principle 16. The overall rating has been influenced by minor gaps or shortcomings in the proposed implementation measures for key considerations 3 and 4.
US-SEC
- Principle ID 16.1
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
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
Section 17A(a)(2)(A) of the Exchange Act, 15 U.S.C. § 78q-1(a)(2)(A); Section 17A(b)(3)(A) and (F) of the Exchange Act, 15 U.S.C. § 78q-1(b)(3)(A), (F): http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78q-1.pdf 17 C.F.R. § 240.17Ad-22(d)(3): http://www.gpo.gov/fdsys/pkg/CFR-2013-title17-vol3/pdf/CFR-2013-title17-vol3-sec240-17Ad-22.pdf Proposed Rule 17Ad-22(e)(16): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf
US-SEC
- Principle ID 16.2
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
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
See above response to Key Consideration 1 in full.
US-SEC
- Principle ID 16.3
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
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
See above response to Key Consideration 1 in full. In addition, see Standards for Covered Clearing Agencies; Proposed Rule; Exchange Act Release No. 34-71699 (Mar. 12, 2014), 79 Fed. Reg. 16865, at 16908 (Mar. 26, 2014). http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf
Assessment comments (key conclusions and recommendations)
There are no requirements on CCPs to evaluate and understand its exposures to its custodian banks, taking into account the full scope of its relationships with each custodian bank. While CCPs are required to assess custodians across several risk criteria, there is no implementation measure to address the requirement that CCPs take an holistic view of risks stemming from the full scope of its relationships with each custodian.
US-SEC
- Principle ID 16.4
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
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
See above response to Key Consideration 1 in full.
Assessment comments (key conclusions and recommendations)
The SEC rules do not require a CCP to have an investment strategy that is consistent with the CCP’s overall risk-management strategy. There are no requirements that the CCP fully disclose the investment strategy to its participants.
US-SEC
- Principle ID 17.0
- Rating Partly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should identify the plausible sources of operational risk, both internal and external, and mitigate their impact through the use of appropriate systems, policies, procedures, and controls. Systems should be designed to ensure a high degree of security and operational reliability and should have adequate, scalable capacity. Business continuity management should aim for timely recovery of operations and fulfilment of the FMI’s obligations, including in the event of a wide-scale or major disruption.
Implementation measures
The standards in Principle 17 are addressed by the following statutory provisions, rules, and proposed rules: Section 17A of the Exchange Act, 15 U.S.C. § 78q-1: http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78q-1.pdf Section 19 of the Exchange Act, 15 U.S.C. § 78s: http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78s.pdf 17 C.F.R. § 240.17Ad-22(d)(4): http://www.gpo.gov/fdsys/pkg/CFR-2013-title17-vol3/pdf/CFR-2013-title17-vol3-sec240-17Ad-22.pdf Proposed Rule 17Ad-22(e)(17): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf Proposed Regulation Systems Compliance and Integrity (“Reg. SCI”), § 242.1000: http://www.gpo.gov/fdsys/pkg/FR-2013-03-25/pdf/2013-05888.pdf
Assessment comments (key conclusions and recommendations)
Recommendation: The SEC is recommended to implement measures which address the gaps or inconsistencies identified, specifically those related to key considerations 2 and 6. Key conclusion: The proposed implementation measures of the SEC are partly consistent with Principle 17. The overall rating has been influenced by gaps or shortcomings in the proposed implementation measures for key considerations 2 and 6.
US-SEC
- Principle ID 17.1
- Rating Partly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should identify the plausible sources of operational risk, both internal and external, and mitigate their impact through the use of appropriate systems, policies, procedures, and controls. Systems should be designed to ensure a high degree of security and operational reliability and should have adequate, scalable capacity. Business continuity management should aim for timely recovery of operations and fulfilment of the FMI’s obligations, including in the event of a wide-scale or major disruption.
Implementation measures
Section 17A(a)(2)(A) of the Exchange Act, 15 U.S.C. § 78q-1(a)(2)(A); Section 17A(b)(3)(A) and (F) of the Exchange Act, 15 U.S.C. § 78q-1(b)(3)(A), (F): http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78q-1.pdf 17 C.F.R. § 240.17Ad-22(d)(4): http://www.gpo.gov/fdsys/pkg/CFR-2013-title17-vol3/pdf/CFR-2013-title17-vol3-sec240-17Ad-22.pdf Proposed Rule 17Ad-22(e)(17): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf
US-SEC
- Principle ID 17.2
- Rating Partly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should identify the plausible sources of operational risk, both internal and external, and mitigate their impact through the use of appropriate systems, policies, procedures, and controls. Systems should be designed to ensure a high degree of security and operational reliability and should have adequate, scalable capacity. Business continuity management should aim for timely recovery of operations and fulfilment of the FMI’s obligations, including in the event of a wide-scale or major disruption.
Implementation measures
See above citations to Section 17A of the Exchange Act in response to Key Consideration 1. In addition, see the following proposed rule under the Exchange Act: Proposed Regulation Systems Compliance and Integrity (“Reg. SCI”), § 242.1000(b) : http://www.gpo.gov/fdsys/pkg/FR-2013-03-25/pdf/2013-05888.pdf
Assessment comments (key conclusions and recommendations)
There is no provision in the proposed SEC rules to implement the requirement that the ’board of directors should clearly define the roles and responsibilities for addressing operational risk and should endorse the FMI’s operational risk-management framework’. There is no provision in the SEC rules equivalent to the requirement that the ’systems, operational policies, procedures, and controls should be audited’.
US-SEC
- Principle ID 17.3
- Rating Partly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should identify the plausible sources of operational risk, both internal and external, and mitigate their impact through the use of appropriate systems, policies, procedures, and controls. Systems should be designed to ensure a high degree of security and operational reliability and should have adequate, scalable capacity. Business continuity management should aim for timely recovery of operations and fulfilment of the FMI’s obligations, including in the event of a wide-scale or major disruption.
Implementation measures
See above citations to Section 17A of the Exchange Act, 17 C.F.R. § 240.17Ad-22(d)(4) thereunder, and proposed Rule 17Ad-22(e)(17)(ii) thereunder in response to Key Consideration 1.
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.