FR/2015 Implementation monitoring of PFMIs: Level 2 assessment report for central counterparties and trade repositories – United States

Committee on Payments and Market Infrastructures Board of the International Organization of Securities Commissions Implementation monitoring of PFMIs: Level 2 assessment report for central counterparties and trade repositories – United States February 2015 This publication is available on the BIS website (www.bis.org) and the IOSCO website (www.iosco.org). © Bank for International Settlements and International Organization of Securities Commissions 2015. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. Statement by IOSCO: Certain IOSCO authorities may consider rule proposals or standards that relate to the substance of this report. These authorities provided information to IOSCO or otherwise participated in the preparation of this report, but their participation should not be viewed as an expression of a judgment by these authorities regarding their current or future regulatory proposals or of their rulemaking or standards implementation work. This report thus does not reflect a judgment by, or limit the choices of, these authorities with regard to their proposed or final versions of their rules or standards. ISBN 978-92-9197-056-8 (online) CPMI-IOSCO – Implementation monitoring of PFMIs: Level 2 assessment report – February 2015 iii Contents 1. Executive summary ......................................................................................................................................................... 1 1.1 Legal and regulatory framework ..................................................................................................................... 1 1.2 Key findings of the assessment ........................................................................................................................ 2 1.3 Summary response from the assessed jurisdiction’s authorities ........................................................ 3 2. Introduction ...................................................................................................................................................................... 4 2.1 Broader context of the Level 2 assessment ................................................................................................. 4 2.2 Objective and rating ............................................................................................................................................. 5 2.3 Scope .......................................................................................................................................................................... 6 2.4 Process ....................................................................................................................................................................... 7 3. Overview of the regulatory, supervisory and oversight framework ............................................................ 8 3.1 Central counterparties ......................................................................................................................................... 8 3.2 Trade repositories ................................................................................................................................................ 13 4. Assessment and recommendations ....................................................................................................................... 16 4.1 Summary assessment of completeness and consistency with the Principles .............................. 16 4.2 United States’ completeness and consistency with the Principles – Review and recommendations ................................................................................................................................................ 30 Annex A: List of abbreviations ................................................................................................................................................. 202 Annex B: Reference documents .............................................................................................................................................. 203 Annex C: Detailed response from the US authorities .................................................................................................... 205 Annex D: List of recognised CCPs and TRs in the US ..................................................................................................... 209 CPMI-IOSCO – Implementation monitoring of PFMIs: Level 2 assessment report – February 2015 1 1. Executive summary In April 2012, the Committee on Payments and Market Infrastructures (CPMI)1 and the International Organization of Securities Commissions (IOSCO) published a report entitled Principles for financial market infrastructures (PFMIs). The principles within the PFMIs (the Principles) set expectations for