13 November 2002

BIS/IOSCO: Recommendations for Securities Settlement Systems

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The Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) released a report entitled Assessment methodology for 'Recommendations for Securities Settlement Systems'.

In November 2001 the CPSS and the Technical Committee of IOSCO published Recommendations for Securities Settlement Systems. The report set out and discussed 19 recommendations which identify minimum standards that securities settlement systems should meet to enhance safety and efficiency.

These recommendations have been included in the Key Standards for Sound Financial Systems highlighted by the Financial Stability Forum. National authorities responsible for the regulation and oversight of Securities Settlement Systems (SSSs) are encouraged to assess whether markets in their jurisdiction have implemented the recommendations and to develop action plans for implementation where necessary.

The new report aims to set out a clear and comprehensive methodology for use in these assessments. The methodology is primarily intended for use in self-assessments by national authorities or in peer reviews of such self-assessments. It is also intended to serve as guidance for the international financial institutions (IFIs, ie the International Monetary Fund and the World Bank) undertaking Financial Sector Assessment Program (FSAP) assessments and for other forms of technical assistance, possibly including financing of reform efforts by the World Bank. To this end, the IFIs took part in developing the assessment methodology. Furthermore, the methodology may also prove useful to private market participants who may be conducting their own assessments of the safety and efficiency of SSSs on the basis of the systems' observance of the recommendations.

Report

© IOSCO