On the 12 October, the CEBS published its guidelines on the management of operational risk in market- related activities. Following the publication of CEBS's high level principles on internal governance, CEBS has now introduced more specific principles and implementation measures for the identification, assessment, control and monitoring of operational risk in market-related activities. The paper highlights supervisory expectations relating to specific arrangements, procedures, mechanisms and systems in trading areas that could prevent or mitigate operational risk events. The CEBS principles are divided into the following:

  • governance mechanisms
  • internal controls and procedures
  • internal reporting systems and principles.

CEBS expects its members to implement these guidelines by 30 June 2011.