Securities regulators and central bankers have begun a process to monitor the implementation of principles designed to ensure the soundness of payment, clearing and settlement systems.
The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) announced Wednesday that they have started monitoring implementation of new international standards for payment, clearing and settlement systems, including central counterparties and trade repositories.
The principles, which were issued by the CPSS and IOSCO in April 2012, are designed to ensure that the infrastructure supporting global financial markets is robust and able to withstand financial shocks. Jurisdictions around the world are now in the process of implementing the principles into their regulatory frameworks.
The policymakers said that “full, timely and consistent” implementation of the principles is fundamental to ensuring the safety and efficiency of key aspects of market infrastructure, and for supporting the resilience of the global financial system. Additionally, they say the principles will play an important part in the G20’s mandate that all standardized over-the-counter (OTC) derivatives should be centrally cleared.
The CPSS and IOSCO have formed a standing task force to coordinate and carry out the assessments, which is co-chaired by Carol Ann Northcott from the Bank of Canada, and Haimera Workie of the US Securities Exchange Commission.