.jpg)
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) announced today that they have started the first Level 3 assessment of the implementation of the Principles for financial market infrastructures (PFMI), the international standards for financial market infrastructures (FMIs). This review will examine consistency in the outcomes of PFMI Principles implementation and is part of the CPMI-IOSCO’s monitoring of full, timely and consistent implementation of the PFMI.
The review will focus on a subset of requirements under the PFMI that relate to financial risk management by central counterparties (CCPs) including certain practices related to governance, stress-testing, margin, liquidity, collateral, and recovery. This first review will consider outcomes achieved in this area by examining a number of globally- and locally-active CCPs that clear derivative products (both exchange traded and over-the-counter (OTC)).
Beyond the aim of fostering full and consistent implementation of the PFMI, the first Level 3 Principles assessment is also expected to inform CPMI and IOSCO about the nature and potential causes of variations in approaches or outcomes.
A report presenting the results of this first Level 3 assessment is expected to be published in 2016.
