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
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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