On February 5, 2016, the Bank for International Settlements, Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions released a joint statement on the clearing of deliverable foreign exchange instruments by central counterparties. The statement provides additional detail around the expectations of CPMI and IOSCO with respect to CCP clearing of deliverable FX instruments and the related models for their settlement originally set out in the April 2012 Principles for financial market infrastructures. The statement notes that while CCPs are not obligated to use a particular settlement process for deliverable FX instruments, the CCP is responsible for the process, including ensuring it complies with the Principles, and conducting appropriate due diligence. The statement notes that CCPs should ensure there are adequate highly reliable liquidity sources to cover liquidity shortfalls, and, at the same time, ensure confidence that same day settlement obligations will be completed despite any such shortfall or other default.

The statement is available at: http://www.iosco.org/library/pubdocs/pdf/IOSCOPD525.pdf