The International Organisation of Securities Commissions (IOSCO) and the Committee on Payment and Settlement Systems (CPSS) have announced that they have started the process of monitoring implementation of the Principles for Financial Market Infrastructures (PFMIs). The PFMIs were issued in April 2012, with a view to enhancing resilience and safety of financial market infrastructures, thus fostering financial stability. The intention was that relevant authorities should strive to incorporate the principles in their legal and regulatory framework by the end of 2012, and that Financial Market Infrastructures (FMIs) subject to the principles (those determined by national authorities to be systemically important) would take appropriate and swift action in order to observe the principles.

The PFMIs deal with five key types of Financial Market Infrastructure (FMI): payment systems (PS), central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs) and trade repositories (TRs). The presumption is that all FMIs (save for payment systems) will be systemically important.

The implementation monitoring will cover the implementation of the principles contained in the PFMIs as well as the responsibilities of central banks, market regulators, and other relevant authorities for financial market infrastructures relating to:

  • Regulation, supervision, and oversight of FMIs
  • Regulatory, supervisory, and oversight powers and resources
  • Disclosure of policies with respect to FMIs
  • Application of the principles for FMIs
  • Co-operation, both domestic and international, between central banks, market regulators, and other relevant authorities in promoting the safety and efficiency of FMIs.