CPMI-IOSCO Report Shows PFMI Implementation Progress

21 of 28 jurisdictions self-attest to full implementation of PFMI; South Korea’ implementation gap relates to trade repositories, while Indonesia’s relates to clearing and settlement systems.

CPMI (the Committee on Payments and Market Infrastructures) and IOSCO (the International Organization of Securities Commissions) have published a new report showing that jurisdictions are making progress on implementing international standards for payment, clearing and settlement systems and trade repositories.

The two bodies are tasked with monitoring the implementation of the PFMI (Principles for financial market infrastructures), which were designed to ensure that the infrastructure supporting global financial markets is robust and well placed to withstand financial shocks.

This fifth update to the Level 1 assessments of implementation monitoring provides jurisdictions’ self-assessments of their progress, as of 1 January 2018, towards adopting the legislation, regulations and other policies that will enable them to implement the 24 Principles for financial market infrastructures and four of the five Responsibilities for regulatory authorities included in the PFMI.

The report shows that 21 of the 28 jurisdictions have self-attested to full implementation of measures for all FMI (financial market infrastructures) types, compared to 20 in the previous update in July 2017.  Of the countries that have not yet completed implementation, South Korea reported an implementation gap relating to trade repositories, while Indonesia’s gap relates to clearing and settlement systems. The other countries reporting implementation gaps include Argentina, Chile, South Africa, Saudi Arabia and the US).

Regulatory authorities mostly self-attest to have completed full implementation of measures consistent with all the relevant Responsibilities included in the PFMI. South Korea was mentioned again, with lower assessments centring around trade repositories.

In its formal response, South Korea noted that it is in the process of institutionalising measures for the introduction of trade repositories, but that the process would take more than two years to complete.

Meanwhile, Indonesia said it is currently drafting amendments to its regulations for central counterparties and securities depositories, and expects the amendments to take effect by the end of 2018.

CPMI and IOSCO will continue monitoring the progress of implementation with these jurisdictions, and in future will utilise an online tracker to show self-reported Level 1 PFMI implementation progress.

The full report is available here.

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