30 November 2015

Implementation monitoring of the PFMI: Assessment and review of application of Responsibilities for authorities

This report presents the findings of the CPMI-IOSCO assessment of the completeness and consistency of frameworks and outcomes arising from jurisdictions’ implementation of the Responsibilities for authorities in the Principles for financial market infrastructures.

The assessments covered implementation of the Responsibilities across all financial market infrastructure  types in 28 participating jurisdictions. The work on the Responsibilities was carried out as a peer review during 2015. Overall, the assessment revealed that a majority of the jurisdictions had achieved a high level of observance of the Responsibilities. Of the 28 jurisdictions assessed, 16 fully observed the five Responsibilities for all FMI types; an additional two jurisdictions either fully or broadly observed each of the five Responsibilities for all FMI types.

With respect to specific FMI types, jurisdictions most frequently fell short of a fully observed rating in the case of trade repositories. Five of the participating jurisdictions had TR regimes that were still in development and were therefore determined to be “not ready for assessment”. In addition, several other jurisdictions lacked clear criteria and/or fully disclosed policies to support their regulation, supervision and oversight of TRs.

 With respect to specific Responsibilities, considerable variability was observed in implementation measures for the Responsibility on cooperation with other authorities. This was due partly to the fact that many cooperative arrangements are new, but may in some cases also reflect different interpretations among authorities of the expectations in this area.

CPMI and IOSCO will review the Responsibilities in the light of the findings of this assessment and consider the need for additional guidance. Further, as jurisdictions gain greater experience with cooperative arrangements, particularly cross-border arrangements for central counterparties and TRs and CMP.

Alongside the assessment and review of application of Responsibilities for authorities, CPMI and IOSCO are continuing to advance the broader programme for implementation monitoring of the PFMI. By the end of the year, CPMI and IOSCO expect to publish an assessment of the completeness and consistency of implementation of the Principles in Australia across all FMI types; this exercise began in April 2015. In addition, the first detailed thematic assessment of outcomes achieved by implementation of the Principles began in July 2015, with a focus on CCPs’ risk management frameworks. CPMI and IOSCO aim to publish a report on the findings of this exercise by mid-2016.

Full report

© IOSCO