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 19.2
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should identify, monitor, and manage the material risks to the FMI arising from tiered participation arrangements.
Implementation measures
See above response to Key Consideration 1 in full.
Assessment comments (key conclusions and recommendations)
The SEC’s proposed rules are consistent with the intention of key consideration 2, but are more high level than key consideration 2. Proposed rule 17Ad 22(e)(19) requires a CCP to ‘identify and monitor’ the risks of tiered participation arrangements, but is silent on the more detailed requirement to identify material dependencies between direct and indirect participants.
US-SEC
- Principle ID 19.3
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should identify, monitor, and manage the material risks to the FMI arising from tiered participation arrangements.
Implementation measures
See above response to Key Consideration 1 in full.
Assessment comments (key conclusions and recommendations)
The SEC’s proposed rules are consistent with the intention of key consideration 3, but are more high level than key consideration 3. Proposed rule 17Ad 22(e)(19) requires a CCP to ‘identify and monitor’ the risks of tiered participation arrangements, but is silent on the more detailed requirement to identify those indirect participants that are responsible for a large proportion of transactions processed by either the CCP, or a direct participant.
US-SEC
- Principle ID 19.4
- Rating Consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should identify, monitor, and manage the material risks to the FMI arising from tiered participation arrangements.
Implementation measures
See above response to Key Consideration 1 in full.
US-SEC
- Principle ID 2.0
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders.
Implementation measures
The standards in Principle 2 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 Section 805(b) of the Clearing Supervision Act, 12 U.S.C. § 5464: http://www.gpo.gov/fdsys/pkg/USCODE-2013-title12/pdf/USCODE-2013-title12-chap53-subchapIV-sec5464.pdf 17 C.F.R. § 240.17Ad-22(d)(8): http://www.gpo.gov/fdsys/pkg/CFR-2013-title17-vol3/pdf/CFR-2013-title17-vol3-sec240-17Ad-22.pdf Proposed Rules 17Ad-22(e)(2), (e)(3), and (a)(20): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf Proposed Rules 17Ad-25 and 17Ad-26: http://www.gpo.gov/fdsys/pkg/FR-2011-03-16/pdf/2011-5182.pdf Proposed Regulation MC, § 242.701: http://www.gpo.gov/fdsys/pkg/FR-2010-10-26/pdf/2010-26315.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 1, 2, 4 and 5. Key conclusion: The proposed implementation measures of the SEC are broadly consistent with Principle 2. The overall rating has been influenced by gaps or shortcomings in the proposed implementation measures for key considerations 1, 2, 4 and 5.
US-SEC
- Principle ID 2.1
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders.
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), (C), and (F) of the Exchange Act, 15 U.S.C. § 78q-1(b)(3)(A), (C), (F): http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78q-1.pdf Section 805(b) of the Clearing Supervision Act,12 U.S.C. § 5464: http://www.gpo.gov/fdsys/pkg/USCODE-2013-title12/pdf/USCODE-2013-title12-chap53-subchapIV-sec5464.pdf Proposed Rule 17Ad-22(e)(2); Proposed Rule 17Ad-22(a)(20); Proposed Rule 17Ad-22(e)(3): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf Standards for Covered Clearing Agencies; Proposed Rule; Exchange Act Release No. 34-71699 (Mar. 12, 2014), 79 Fed. Reg. 16865, at 16879, 16968 (Mar. 26, 2014): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf
Assessment comments (key conclusions and recommendations)
The SEC has proposed to implement measures which require that a CCP establish, implement, maintain and enforce written policies and procedures that clearly prioritise the safety and efficiency of the CCP and support the public interest. Section 805(b) of Title VIII states that the objectives and principles for the risk management standards prescribed under Title VIII shall be, among other things, to support the stability of the broader financial system. However, the SEC has not proposed to implement measures which require that the objectives of a CCP explicitly support financial stability.
US-SEC
- Principle ID 2.2
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders.
Implementation measures
Sections 3(a)(27) of the Exchange Act, 15 U.S.C. § 78c(a)(27),: http://www.gpo.gov/fdsys/pkg/USCODE-2013-title15/pdf/USCODE-2013-title15-chap2B-sec78c.pdf Section 17A(b)(3)(C) of the Exchange Act, 15 U.S.C. § 78q-1(b)(3)(C): 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 Application for registration or for exemption from registration as a clearing agency: https://www.sec.gov/about/forms/formca-1.pdf
Assessment comments (key conclusions and recommendations)
The SEC has proposed to implement measures which require that a CCP have governance arrangements that are clear and transparent, and are disclosed to the SEC and other relevant authorities, clearing members and their customers, to owners and the public. The SEC’s proposed requirements for application for registration of a CCP asks the CCP to supply exhibits outlining its business organization and must, among other things, for each officer, manager, or other persons occupying a similar status or performing similar functions who supervise, or are directly responsible for the conduct of, CCP activities, indicate their name, title, area of responsibility, and a brief account of their business experience during the last five years. In addition, the CCP must provide narrative and graphic descriptions of its organisational structure, specifying the CCP activities that are conducted by a division, subdivision, or other entity within the corporation, and the relationship of such entity to the CCP's overall organizational structure. However, the form does not create an obligation on the CCP either at the point of registration or on an ongoing basis. The SEC has therefore not implemented, or proposed to implement, explicit measures which require that a CCP have governance arrangements that provide clear and direct lines of responsibility and accountability.
US-SEC
- Principle ID 2.3
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders.
Implementation measures
Section 17A(b)(3)(C) of the Exchange Act, 15 U.S.C. 78q-1(b)(3)(C): http://www.gpo.gov/fdsys/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap2B-sec78q-1.pdf Proposed Rule 17Ad-25; Proposed Rule 17Ad-26: http://www.gpo.gov/fdsys/pkg/FR-2011-03-16/pdf/2011-5182.pdf
US-SEC
- Principle ID 2.4
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders.
Implementation measures
Standards for Covered Clearing Agencies; Proposed Rule; Exchange Act Release No. 34-71699 (Mar. 12, 2014), 79 Fed. Reg. 16865 (Mar. 26, 2014), corrected at 79 Fed. Reg. 29507, 29613 (May 22, 2014): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf Clearing Agency Standards for Operation and Governance; Proposed Rule; Exchange Act Release No. 34-64017 (Mar. 3, 2011), 76 Fed. Reg. 14472, 14539 (Mar. 16, 2011): http://www.gpo.gov/fdsys/pkg/FR-2011-03-16/pdf/2011-5182.pdf Exchange Act Release No. 34-16900 (July 1, 1980), at p. 7: http://www.sec.gov/rules/other/34-16900.pdf
Assessment comments (key conclusions and recommendations)
With regard to incentives, the SEC’s proposed requirement for the rules of a CCP to assure a fair representation of its shareholders (or members) and participants in the selection of its directors is considered to broadly implement the requirement to ensure that those elected to the board have appropriate incentives. It is also noted that there is no binding requirement that the board of a CCP include non-executive board member(s). However, this requirement is prefaced in the key consideration by the term ‘typically’ so it can be seen as falling short of a mandatory requirement.
US-SEC
- Principle ID 2.5
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders.
Implementation measures
Standards for Covered Clearing Agencies; Proposed Rule; Exchange Act Release No. 34-71699 (Mar. 12, 2014), 79 Fed. Reg. 16865 (Mar. 26, 2014), corrected at 79 Fed. Reg. 29507, 29520 (May 22, 2014): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf Application for registration or for exemption from registration as a clearing agency: https://www.sec.gov/about/forms/formca-1.pdf
Assessment comments (key conclusions and recommendations)
The SEC has proposed to implement measures which require that the management of a CCP have appropriate experience and skills. However, the SEC has not implemented, or proposed to implement, explicit measures which require that the roles and responsibilities of management be clearly specified (see comments under key consideration 2 on the use of the registration form).
US-SEC
- Principle ID 2.6
- Rating Broadly consistent
Implementation measure cut-off date: 25-Feb-2015
Assessment rating date: 17-Apr-2014
Principle
An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders.
Implementation measures
Standards for Covered Clearing Agencies; Proposed Rule; Exchange Act Release No. 34-71699 (Mar. 12, 2014), 79 Fed. Reg. 16865 (Mar. 26, 2014), corrected at 79 Fed. Reg. 29507, 29521 (May 22, 2014): http://www.gpo.gov/fdsys/pkg/FR-2014-03-26/pdf/2014-05806.pdf
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.