Published On: Thu, Feb 26th, 2015

Level 2 assessments for CCPs and trade repositories in the EU under PFMI

Greg Medcraft, IOSCO, Chairman

Greg Medcraft, IOSCO, Chairman

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have today published three reports on selected jurisdictions’ progress towards the implementation of the Principles for Financial Market Infrastructures (PFMI).
European Union
Japan
United States

The reports focus on the implementation of the Principles (as contained in the PFMI) for central counterparties (CCPs) and trade repositories (TRs) in the European Union, Japan and the United States. The three Level 2 assessment reports are based on peer reviews of whether, and to what degree, the content of the jurisdiction’s legal and regulatory or oversight framework is complete and consistent with the PFMI. CPMI and IOSCO consider the implementation monitoring exercise to be very important, not least given the increasingly significant role played by CCPs and TRs in the OTC derivatives market arising from the regulatory reforms agreed by the G20. In each case, the assessment reflects the status of the jurisdiction’s legal, regulatory and oversight frameworks as at 18 April 2014.

Overall, the reports demonstrate that the three jurisdictions have made good progress in implementing the Principles in their legal and regulatory or oversight frameworks. This is especially evident for CCPs, where the jurisdictions have generally developed frameworks that completely and consistently implement either all, or the majority, of the Principles applicable to systemically important CCPs. Jurisdictions’ progress towards completely and consistently implementing the Principles for TRs has been more varied. Where appropriate, the reports highlight gaps and make recommendations for addressing them.

Further Level 2 assessments covering other jurisdictions and FMI types are scheduled for 2015-2016.

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