11 June 2015

IOSCO: Implementation monitoring of the PFMIs - Second update to Level 1 assessment report

The Committee on Payments and Market Infrastructures (CPMI) and the IOSCO published the second update to the Level 1 assessments of implementation monitoring of the Principles for financial market infrastructures (PFMIs). 

Level 1 assessments are based on self-assessments by individual jurisdictions on how they have adopted, within their regulatory and oversight frameworks, the PFMIs’ 24 Principles for FMIs and four of the five Responsibilities for authorities.

The initial Level 1 assessments were conducted in mid-2013 and a report was published in August 2013. The current report is the second update to the Level 1 assessments and shows that good progress has been made by the 28 participating jurisdictions since the previous update in May 2014. In particular, the gap in the progress on implementation measures applicable to central securities depositories and securities settlement systems vis-a-vis other types of FMI has now closed. The next update of the Level 1 assessments will be conducted in 2016.

Alongside the second update to the Level 1 assessments, CPMI and IOSCO are continuing to monitor jurisdictions’ progress at Levels 2 and 3. The first detailed evaluations of the completeness and consistency of jurisdictions’ implementation measures for the Principles (Level 2) were published in February 2015 for CCPs and TRs in the European Union, Japan and the United States. A second round of Level 2 assessments for the Principles is now beginning, along with a first round of Level 3 assessments for the Principles. The results from these assessments are expected to be published in 2015-2016.

CPMI and IOSCO have also recently undertaken an assessment of the completeness and consistency of frameworks and outcomes (combined Level 2 and Level 3) arising from jurisdictions’ implementation of the Responsibilities for authorities included in the PFMIs. This exercise is well under way and a report presenting the results is expected to be published later this year.

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