CPMI and IOSCO begin PFMI Principles assessment: The Committee on Payments and Market Infrastructures (CPMI) within BIS and the International Organisation of Securities Commissions (IOSCO) have started the first Level 3 assessment of the implementation of the Principles for Financial Market Infrastructures (PFMI). The review will:

  • examine the level of consistency in the outcomes of PFMI Principles implementation as part of CPMI-IOSCO’s monitoring of full, timely and consistent implementation of the PFMI;
  • focus on a subset of requirements under the PFMI that relate to financial risk management by CCPs including certain practices related to governance, stress-testing, margin, liquidity, collateral and recovery;
  • consider outcomes achieved in the above by examining a number of globally- and locally-active CCPs that clear derivative products; and
  • inform CPMI and IOSCO about the nature and potential causes of variations in approaches or outcomes.

The review will report in 2016. (Source: CPMI and IOSCO Begin First “Level 3” PFMI Principles Assessment)

Basel Committee reports on supervisory colleges progress: The Basel Committee has published a report on the implementation of principles for effective supervisory colleges. Conclusions include:

  • supervisors feel the functioning of supervisory colleges has improved;
  • colleges play a key role in assisting supervisors;
  • colleges have evolved into key forums for discussion of broader issues, which is very helpful;
  • a wide range of college structures has been developed, with greater attention to host regulator concerns;
  • the collaborative work among college members contributes to improving the effectiveness of the oversight of cross-border banking groups;
  • while supervisors report that interaction with firms has improved in supervisory colleges, particularly in terms of a higher-quality engagement with management, many firms have indicated that they would like to receive more feedback on college discussions; and
  • the greatest challenges for colleges are around crisis management.

(Source: Progress Report on the Implementation of Principles for Effective Supervisory Colleges)