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The oversight of financial market infrastructure in Canada is largely meeting beefed-up, post-crisis standards, global banking and securities organizations announced today.

A new report from the International Organization of Securities Commissions (IOSCO) and the Committee on Payments and Market Infrastructures (CPMI), indicates that the legal, regulatory and oversight frameworks for financial market infrastructure (FMI) in Canada generally comply with the latest set of global principles. The study found that components of the financial infrastructure such as clearing and settlement firms, payment systems and central counterparties (CCPs) meet the latest standards set to to ensure the stability of the financial system through by monitoring the safety and efficiency of infrastructure firms.

The report is based on a peer review of Canada’s legal, regulatory and oversight framework carried out between August 2017 and April 2018, and reflects the status of Canada’s regime as of June 30, 2017.

The report notes a few areas in which the Canadian regime deviates from the global principles, including liquidity risk management and principles for trade repositories. It adds that Canadian authorities have pledged to “address, as appropriate, the findings of the report.”

The global principles apply to all systemically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. In Canada, payment systems are jointly regulated by the Bank of Canada and the Department of Finance Canada; CCPs, securities depositories and settlement systems are jointly regulated by the Bank of Canada and provincial securities regulators; trade repositories are overseen by the securities regulators.

IOSCO and the CPMI note that they will continue to monitor the implementation of the FMI principles in various jurisdictions.