CPMI and IOSCO published a report that presents the results of a Level 2 assessment on whether, and to what degree, the legal, regulatory, and oversight frameworks for financial market infrastructures (FMIs) in Switzerland are complete and consistent with the Principles for Financial Market Infrastructures (PFMI). The report concludes that Switzerland's legal, regulatory, and oversight frameworks for FMIs are generally consistent with the PFMI, with some exceptions.
The assessment found that, as of June 30, 2017, Switzerland has generally implemented the PFMI. For payment systems, central securities depositories, securities settlement systems, central counterparties, the Principles have been implemented in a complete and consistent or broadly consistent manner, with the exception of Principle 7 on liquidity risk management, Principle 22 on communication procedures and standards, and Principle 19 (as applicable for payment systems) on tiered participation arrangements. For trade repositories, a number of gaps were identified with varying severity. Specifically, the principles on legal basis, the framework for the comprehensive management of risks, general business risk, operational risk, FMI links, communication procedures and standards, and disclosure of market data have not been fully implemented. Swiss authorities welcomed the assessment and indicated that the relevant recommendations would be given careful consideration in any future amendment to the regulatory framework.
Level 2 assessments focus on whether, and to what degree, the content of a jurisdiction's legislation, regulations, and policies for systemically important payment systems, central securities depositories, securities settlement systems, central counterparties, and trade repositories is complete and consistent with the PFMI.
Related Link: CPMI-IOSCO Report
Keywords: International, Europe, Switzerland, PMI, PFMI, Level 2 Assessment, Systemic Risk, CPMI, IOSCO
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Previous ArticleIAIS Publishes Newsletter for January 2019
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.