Featured Product

    CPMI and IOSCO Outline Lessons Learned on Cooperation Among FMIs

    December 10, 2019

    CPMI and IOSCO published a report that shares lessons learned from the ways in which financial authorities cooperate to promote the safety and efficiency of financial market infrastructures (FMIs). This report describes ways in which authorities cooperate with each other in a variety of contexts, with emphasis on the expectations in Responsibility E of the Principles for Financial Market Infrastructures (PFMI). The practices presented in the report reflect authorities’ actual experience and elaborate on six key topics: the benefits of cooperation; triggers for cooperation; relevant authorities with regulatory, supervisory, or oversight responsibilities over FMIs; cooperation regarding a specific FMI; designing of cooperative arrangements; and tools for cooperation.

    Cooperation among authorities is highly valued and has been demonstrated by central banks, market regulators, and other authorities worldwide for decades. CPMI and IOSCO have observed that cooperation among authorities is evolving and that cooperative arrangements for specific FMIs are growing in number and importance. These developments are due, in part, to the increasing globalization of financial markets, policy decisions resulting in an increased use of and reliance on FMIs, and the systemic importance of particular FMIs domestically and in multiple jurisdictions. Given these observations and the role of cooperation in the regulation, supervision, and oversight of FMIs, CPMI and IOSCO developed this report to share lessons learned by authorities. 

    The report is designed to share the lessons learned by a wide range of regulators, supervisors, and overseers of FMIs with cooperation. It describes the ways in which authorities cooperate with each other in a variety of contexts, with emphasis on the expectations in Responsibility E under the PFMI. Responsibility E describes how authorities should cooperate with each other, both domestically and internationally, as appropriate, in promoting the safety and efficiency of FMIs. The report includes illustrative effective practices that may inform authorities in their development of, and improvements to, cooperative arrangements for all FMI types. The report concludes with a summary of lessons learned, which reflect several themes that emerged from the review of authorities’ experience. The report may be useful to authorities in jurisdictions that are in the process of developing a regulatory framework for FMIs. 

    The discussion is not intended to impose additional standards beyond those set out in the PFMI or to provide additional guidance beyond that provided in Responsibility E. Instead, the report identifies and elaborates on a range of issues and practices that authorities have experienced and considered when determining whether, and how, to establish and enhance cooperation that suits their needs and fulfills their respective mandates. The report has benefited from contributions from a range of authorities with responsibilities for regulating, supervising, and overseeing all types of FMI as well as central banks of issue that have an interest in the payment and settlement arrangements of an FMI. 

     

    Related Links

    Keywords: International, Banking, Securities, PFMI, FMI, Systemic Risk, Responsibility E, Supervisory Convergence, Lessons Learned, CPMI, IOSCO

    Featured Experts
    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425