CPMI and IOSCO published a Level 2 assessment report on the implementation monitoring of PFMI in United States. The assessment concludes that the legal, regulatory, and oversight frameworks for payment systems, central security depositories (CSDs), and securities settlement systems in the U.S. are complete and "consistent" with the Principles for financial market infrastructures (PFMI). Minor gaps have been identified in the frameworks for payment systems, CSDs, and securities settlement systems; however, these gaps are judged to have an immaterial impact on the assessment ratings.
The assessment reflects the status of the U.S. legal, regulatory, and oversight framework as of March 30, 2018. The report presents a table that covers the identified gaps and recommendations. The assessment was conducted as a peer review from June 2018 to January 2019. The report complements a February 2015 report on central counterparties and trade repositories. The U.S. has now completed the Level 2 peer assessment process for the implementation of the PFMI. The U.S. authorities for the assessment were FED and SEC because of their role in the regulation, supervision, and oversight of payment systems and CSDs/securities settlement systems.
The rating framework used in Level 2 assessments is an adaptation of the approach described in the PFMI Assessment Methodology. The possible rating levels are “Consistent,” “Broadly consistent,” “Partly consistent,” “Not consistent,” and “Not applicable.” CPMI and IOSCO have also launched the PFMI Level 2 implementation database, which is a repository of all assessments completed to date. The database contains relevant implementation measures, ratings, gaps, and recommendations. It complements the assessment reports, which, starting with this U.S. evaluation, will provide descriptions of the principles and key considerations for which any gaps are identified and recommendations made. This database will be updated as new Level 2 assessments are completed.
Keywords: Americas, US, Banking, Securities, PMI, PFMI, Level 2 Assessment, Implementation Monitoring, CSD, CPMI, IOSCO
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