CPMI and IOSCO Announce Commencement of First "Level 3" PFMI Principles Assessment

The Committee on Payments and Market Infrastructures ("CPMI") and IOSCO announced that they began the first Level 3 Assessment of the implementation of the principles for financial market infrastructures ("PFMI").

The Level 3 Assessment will examine consistency in the outcomes of PFMI implementation and is part of the CPMI-IOSCO's monitoring of full, timely and consistent implementation of the PFMI.

The Assessment will also focus on a subset of requirements under the PFMI that relate to financial risk management by central counterparties, including certain practices related to governance, stress-testing, margin, liquidity, collateral and recovery. Furthermore, the Assessment will consider outcomes achieved in this area by examining a number of globally and locally active CCPs that clear derivative products (both exchange traded and over-the-counter).

A report presenting the results of the Level 3 Assessment is expected to be published in 2016.

See: Press Release.Related news:Principles for Financial Market Infrastructures: Update on Assessment of Implementation Published (June 12, 2015); CPMI and IOSCO Publish Reports on the Implementation of the Principals for Market Infrastructures in the EU, Japan and the U.S. (February 26, 2015); CPSS and IOSCO Monitor Implementation of PFMIs (April 17, 2013); CPSS and IOSCO Issue Disclosure Framework and Assessment Methodology for FMIs (December 14, 2012).