CPMI/IOSCO: Implementation monitoring of the PFMI

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have today published a report that finds that Singapore’s legal, regulatory and oversight framework for key payments and settlement systems complies with CPMI-IOSCO’s Principles for financial market infrastructures (PFMI) with the one exception of Principle 24 regarding disclosure of market data by trade repositories (TRs).

This report, Implementation monitoring of PFMI: Level 2 assessment report for Singapore, presents the conclusions of the CPMI-IOSCO Level 2 assessment of whether, and to what degree, the legal, regulatory and oversight framework for systemically important payment systems (PSs), central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs) and TRs in Singapore are complete and consistent with the PFMI.

Conducted as a peer review during 2016-17, this Level 2 assessment reflects the status of Singapore’s legal, regulatory and oversight framework as of 15 July 2016 and concludes that it is complete as well as consistent with the Principles, with the exception of Principle 24 for TRs. The Monetary Authority of Singapore (MAS) is actively considering appropriate requirements for the publishing of data in a manner that will help to achieve the objectives of public disclosure.

Alongside the Level 2 assessment for Singapore, the CPMI and IOSCO are continuing to advance the broader programme of implementation monitoring for the PFMI. The results of the fourth update to the Level 1 assessments were recently published on 14 July 2017. A Level 2 assessment report for Hong Kong SAR was also published on 24 May 2017. Other jurisdictions will be assessed at Level 2 over time.

In addition, the CPMI and IOSCO are currently working on a follow-up review, as announced in the first “Level 3 assessment – Report on the financial risk management and recovery practices of 10 derivatives CCPs“. This new Level 3 review focuses on CCPs’ progress in addressing the most serious issues of concern identified in the first Level 3 report, namely on CCP recovery planning, coverage financial recourses and liquidity stress testing. The CPMI and IOSCO aim to publish a report on the findings of this exercise by end-2017.