ECB published the final cyber resilience oversight expectations for financial market infrastructures (FMIs). The cyber resilience oversight expectations are based on the global guidance on cyber resilience for financial market infrastructures. This guidance was published by CPMI and IOSCO in June 2016. ECB also published a high-level overview of the comments received during the consultation and summarized the main amendments to the cyber resilience oversight expectations.
The cyber resilience oversight expectations provide FMIs with detailed steps on how to operationalize the guidance, provide overseers with clear expectations to assess FMIs under their responsibility, and provide the basis for a meaningful discussion between the FMIs and their respective overseers. During the consultation, ECB received responses from 20 entities, including FMIs, banks, banking communities, and associations. Comments in the public consultation mostly focused on four aspects:
- Level of prescriptiveness of the expectations
- Three levels of cyber maturity and how these correspond to other international cybersecurity frameworks, which also have maturity models
- Process for oversight assessments against the cyber resilience oversight expectations
- Need for harmonization across different jurisdictions and among regulators, to reduce the fragmentation of regulatory expectations and facilitate oversight convergence
Cyber resilience is an important aspect of the operational resilience of FMIs and efficient operation of FMIs is essential for maintaining and enhancing financial stability. If not properly managed, FMIs can be sources of financial shocks, such as credit losses. They can also be a major channel through which these shocks are transmitted across domestic and international financial markets.
- Press Release
- Cyber Resilience Oversight Guidance (PDF)
- ECB Response to Consultation
- Responses from Entities (ZIP)
- CPMI-IOSCO Guidance on Cyber Resilience
Keywords: Europe, EU, Banking, PMI, FMI, Cyber Resilience, Cyber Risk, Operational Risk, ECB
Previous ArticleMFSA Updates Multiple Reporting Templates Under COREP and FINREP
Next ArticleSRB Chair Speaks About Work Priorities for 2019
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.