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

    FSB Sets Out Effective Practices for Cyber Incident Recovery

    FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.

    October 19, 2020 WebPage Regulatory News
    News

    HKMA Urges Early Action for Adherence to IBOR Fallbacks Protocol

    HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.

    October 16, 2020 WebPage Regulatory News
    News

    FSB Sets Out Roadmap for Transition to Alternative Reference Rates

    FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).

    October 16, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on BRRD2 Transposition

    HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).

    October 15, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on CRD5 Transposition

    HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.

    October 15, 2020 WebPage Regulatory News
    News

    BoE Publishes Reporting Schedule for Statistical Returns

    In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.

    October 15, 2020 WebPage Regulatory News
    News

    EC Welcomes Declaration by Member States on EU Cloud Federation

    EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.

    October 15, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Issuance of Covered Bonds by Banks in Singapore

    MAS published amendments to Notice 648 on the issuance of covered bonds by banks incorporated in Singapore.

    October 15, 2020 WebPage Regulatory News
    News

    FDIC Selects Technology Companies for Rapid Prototyping Competition

    FDIC has selected 14 technology companies—including Accenture Federal Services, LLC, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the next phase of the rapid prototyping competition.

    October 15, 2020 WebPage Regulatory News
    News

    GLEIF Defines New Validation Agent Role for Financial Institutions

    GLEIF announced that financial institutions worldwide can realize a variety of cost, efficiency, and customer experience benefits by assuming a new “validation agent” role within the Global Legal Entity Identifier (LEI) System.

    October 15, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5979