The Bank of Canada (BoC) on Friday published its final supplementary guidance on risk management standards for critical components of financial market infrastructure, such as clearing and settlement systems, central counterparties, and payments systems.

The bank’s risk management standards for systemic infrastructure adheres to international principles developed in this area by the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).

The guidance, which the central bank has been developing in co-ordination with the Canadian Securities Administrators (CSA), aims to add “context and clarity on certain aspects of these standards” for the Canadian market, the BoC says in notice.

The final guidance revises several standards to simplify them, and improve consistency. It also introduces new guidance on recovery plans, which was the subject of a consultation period earlier this year.

The final guidance on recovery planning has been influenced both by the comments received during the public consultation, and “evolving international interpretations” of the standards and guidance in this area, along with other ongoing policy work in this area, the BoC notice says.

These developments will continue to have an impact on recovery planning and resolution frameworks for market infrastructure, the bank says. “To ensure that recovery planning in the Canadian context remains in step with this evolving landscape, the Bank of Canada and the CSA have relaxed some of the previously restrictive language [in the recovery planning guidance],” the BoC notice says.