Implementation monitoring of PFMI: Assessment report for Switzerland

CPMI Papers  |  No 183  | 
30 January 2019
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 |  139 pages

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) closely monitors the implementation of the Principles for financial market infrastructures (PFMI). This report presents the conclusions drawn by the CPMI and IOSCO from a Level 2 assessment of whether, and to what degree, the legal, regulatory and oversight frameworks for financial market infrastructures (FMIs) in Switzerland, including rules and regulations, any relevant policy statements, or other forms of implementation, are complete and consistent with the Principles. 

The assessment found that - as of 30 June 2017 - Switzerland has generally implemented the PFMI. For PSs, CSDs/SSSs and CCPs, the Principles have been implemented in a complete and consistent or broadly consistent manner with the exception of Principle 7 on liquidity risk management and Principle 22 on communication procedures and standards, as well as Principle 19 (as applicable for PSs) on tiered participation arrangements. For TRs, a number of gaps were identified with varying severity. Principles 1, 3, 15, 17, 20, 22 and 24 on legal basis, the framework for the comprehensive management of risks, general business risk, operational risk, FMI links, communication procedures and standards, and disclosure of market data, respectively, have not been fully implemented.