Investment Operations

US has Fully Implemented PFMI for Central Securities Depositories and Securities Settlement Systems

A CPMI-IOSCO report concludes that the US legal, regulatory and oversight frameworks for systemically important PSs and CSDs/SSSs (as of March 2018) are complete and consistent with the Principles for Financial Market Infrastructures (PFMI). While the report also identifies a number of minor gaps in the frameworks for PSs and CSDs/SSSs, they are judged to have an immaterial impact on the Consistent rating for the jurisdiction.

The report complements an earlier US assessment report, published in February 2015, on central counterparties and trade repositories. The US has now completed the Level 2 peer assessment process for the implementation of the PFMI.

The CPMI and IOSCO said they will continue to focus their monitoring efforts on assessing the completeness and consistency of jurisdictions’ implementation measures with the PFMI and the consistency in the outcomes of their implementation.

The CPMI and IOSCO also launched a PFMI Level 2 implementation database, a repository of all assessments completed to date. According to a joint statement, the database contains relevant implementation measures, ratings, gaps, and recommendations and complements the assessment reports, which, starting with this US evaluation, will provide descriptions of the principles and Key Considerations for which any gaps are identified and recommendations made. The database is expected to be updated as new Level 2 assessments are completed.

Download the report here.