Basel publishes market infrastructure principles: Basel has published the final report from its Committee on Payment Settlement Systems (CPPS) and the Technical Committee of the International Organisation of Securities Commissions (IOSCO) on new international standards for systematically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. The report sets out 24 principles for financial market infrastructures under headings dealing with:

  • general organisation;
  • credit and liquidity risk management;
  • settlement;
  • central securities depositories and exchange-of-value settlement systems;
  • default management;
  • general business and operational risk management
  • access;
  • efficiency; and
  • transparency.

It also includes five “responsibilities” for central banks, market regulators and other relevant authorities. Basel is also consulting on the assessment methodology and the disclosure framework for these new principles. It wants comments by 12 June 2012. (Source: CPSS/IOSCO Principles for Financial Market Infrastructures, Assessment Methodology and Disclosure framework)