CPMI-IOSCO Conclude that Switzerland has Generally Implemented PFMI
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
Featured Experts
Blake Coules
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.
Previous Article
ESMA Starts Publishing Questions Received Through Q&A ProcessRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards