The Principles for financial market infrastructures (PFMIs) are international standards for payment, clearing and settlement systems, and trade repositories. They are designed to ensure that the infrastructure supporting global financial markets is robust and well placed to withstand financial shocks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued the PFMIs in April 2012 and their members have committed themselves to adopting the 24 principles and the five responsibilities for authorities (the Responsibilities) included in the PFMI across financial market infrastructure (FMI) types (i.e. payment systems, central counterparties, central securities depositories, securities settlement systems and trade repositories).
The CPMI and IOSCO have agreed to monitor their members’ implementation of the PFMIs and in 2015 a peer review was conducted concerning implementation of the Responsibilities. The CPMI and IOSCO have now published a report concerning the findings of the peer review. Overall, the review found that a majority of the jurisdictions had achieved a high level of observance of the Responsibilities. Of the 28 jurisdictions, 16 fully observe the Responsibilities for all FMI types. With respect to specific FMI types, trade repositories represented the FMI type for which most additional work remains to be done. This was evidenced by 5 jurisdictions having trade repository regimes that were still in development and were determined to be ‘not ready for assessment’ and by several other jurisdictions lacking clear criteria and/or fully disclosed policies to support their regulation, supervision and oversight of trade repositories.