Responsibility E: A compilation of authorities' experience with cooperation

CPMI Papers  |  No 189  | 
10 December 2019

The Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) have observed that cooperation among authorities is evolving and that cooperative arrangements for specific financial market infrastructures (FMIs) are growing in number and importance. These developments are due, in part, to the increasing globalisation of financial markets, policy decisions resulting in an increased use of and reliance on FMIs, and the systemic importance of particular FMIs domestically and in multiple jurisdictions. Given these observations and the role of cooperation in the regulation, supervision, and oversight of FMIs, the CPMI and IOSCO developed this report to share lessons learned by authorities.

This report describes ways in which authorities cooperate with each other in a variety of contexts, with particular emphasis on the expectations in Responsibility E of the Principles for financial market infrastructures (PFMI). It includes illustrative effective practices which may inform authorities in their development of, and improvements to, cooperative arrangements for all FMI types. The report is based on authorities' actual past experiences and thus does not deal with new systems that have recently emerged such as "stablecoin" arrangements.

The report elaborates on six key topics: the benefits of cooperation; triggers for cooperation; relevant authorities; cooperation regarding a specific FMI; designing cooperative arrangements; and tools for cooperation.