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 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 Securities Exchange Act of 1934 (“Securities Exchange Act” or “Exchange Act” or “Act”) available at this link: http://www.sec.gov/about/laws/sea34.pdf Proposed Rules 13n-1 to13n-11 contained in the SEC SDR Proposing Release available at this link: http://www.sec.gov/rules/proposed/2010/34-63347.pdf Proposed Rule 13n-12 contained in the SEC Cross-Border Proposing Release available at this link: http://www.sec.gov/rules/proposed/2013/34-69490.pdf SEC Re-Proposed Reg SBSR available at this link: http://www.sec.gov/rules/proposed/2013/34-69490.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, 3, 4 and 5. Key conclusion: The proposed implementation measures of the SEC are partly consistent with Principle 1. The overall rating has been influenced by the absence of measures or proposed measures implementing key consideration 5 and gaps or shortcomings in the proposed implementation measures for key considerations 1, 3 and 4.
US-SEC
- 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
Securities Exchange Act Sections 3(a)(75); 3C(e); 13A(a)(1); 13(m)(1)(G); 13(n)(1); 13(n)(3)(A); 13(n)(5); 13(n)(7); 13(n)(8); 13(n)(9)
Assessment comments (key conclusions and recommendations)
The Exchange Act describes the legal basis of TRs but it is not proposed that TRs be required to 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.
US-SEC
- Principle ID 1.2
- 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
Securities Exchange Act Sections 3(a)(75); 3C(e); 13A(a)(1); 13(m)(1)(G); 13(n)(1); 13(n)(3)(A); 13(n)(3)(B); 13(n)(5); 13(n)(7); 13(n)(8); 13(n)(9) SEC Proposed Rule 13n-1(b); 13n-1(c)(3); 13n-4(b); 13n-4(c)(2)-(3); 13n-11(c); 13n-11(d)(1) Proposed Form SDR Exhibits, SEC SDR Proposing Release SEC Re-Proposed Reg SBSR, Rule 907 Preamble to SEC SDR Proposing Release Preamble to SEC Cross-Border Proposing Release
US-SEC
- Principle ID 1.3
- 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
Securities Exchange Act Sections 13(n)(6); 13(n)(7)(B) SEC Proposed Rule 13n-10(b); 13n-11(d)(1) SEC Re-Proposed Reg SBSR, Rule 907(c) Proposed Form DR Exhibits, SEC SDR Proposing Release
Assessment comments (key conclusions and recommendations)
TRs are required to disclose various aspects of their governance arrangements, but this does not include a requirement to articulate the legal basis for their activities.
US-SEC
- Principle ID 1.4
- 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
Securities Exchange Act Sections 13n-1(c)(3)); 13n-4(c)(1) SEC Proposed Rule 13n-4(c)(3); 13n-5(b); 13n-6(b); 13n-9(b) Preamble to SEC SDR Proposing Release
Assessment comments (key conclusions and recommendations)
The proposed rules would require a TR to have policies and procedures, which must comply with the U.S. federal securities laws. TRs shall also not adopt any policies and procedures or take any action that results in an unreasonable restraint of trade or imposes any material anticompetitive burden on the trading, clearing, or reporting of transactions. In the proposed rule, each TR shall also establish and enforce written policies and procedures reasonably designed to minimize conflicts of interest in the decision-making process of the TR and establish a process for resolving any such conflicts of interest. However, while TRs are required to have rules that are compliant with the applicable provisions of the Exchange Act, they are not required to ensure that such rules (along with their procedures and contracts) are enforceable in all relevant jurisdictions. Furthermore, the rules, procedures and contracts of TRs are not required to ensure that actions taken by the TR will not be voided, reversed, or subject to stays.
US-SEC
- Principle ID 1.5
- 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
SEC Proposed Rule 13n-12 SEC Cross-Border Proposing Release
Assessment comments (key conclusions and recommendations)
Although in practice TRs operating in multiple jurisdictions would need to address any conflicts of laws issues that arise under their own analysis, the SEC’s proposed rules do not explicitly address conflict of laws across jurisdictions.
US-SEC
- Principle ID 15.0
- Rating Not 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
The Securities Exchange Act available at this link: http://www.sec.gov/about/laws/sea34.pdf The SEC SDR Proposing Release available at this link: http://www.sec.gov/rules/proposed/2010/34-63347.pdf
Assessment comments (key conclusions and recommendations)
Recommenation: The SEC is recommended to implement measures which address the gaps or inconsistencies identified for all relevant key considerations. Key conclusions: The proposed implementation measures of the SEC are not consistent with Principle 15. The overall rating has been influenced by the absence of measures or proposed measures implementing any relevant key consideration.
US-SEC
- Principle ID 15.1
- Rating Not 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
Securities Exchange Act Section 13(n)(5)(E) SEC Proposed Rule 13n-4(c)(2); 13n-6(b); 13n-11(f)
Assessment comments (key conclusions and recommendations)
TRs are not required to have management and control systems to identify, monitor, and manage general business risks.
US-SEC
- Principle ID 15.2
- Rating Not 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
SEC Proposed Rule 13n-11(f) Proposed Form SDR Exhibits, SEC SDR Proposing Release
Assessment comments (key conclusions and recommendations)
It is not proposed that TRs be required to hold liquid net assets funded by equity specifically so that they can continue operations and services as a going concern if they incur general business losses.
US-SEC
- Principle ID 15.3
- Rating Not 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
SEC Proposed Rule 13n-5(b)(7)-(8)
Assessment comments (key conclusions and recommendations)
It is not proposed that a TR be required to maintain a viable recovery or orderly wind-down plan or hold sufficient liquid net assets funded by equity to implement this plan. It is not proposed to be required that at a minimum a TR hold liquid net assets funded by equity equal to at least six months of current operating expenses.
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.