FR/2015 Implementation monitoring of PFMI: Level 2 assessment report for Australia

Committee on Payments and Market Infrastructures Board of the International Organization of Securities Commissions Implementation monitoring of PFMI: Level 2 assessment report for Australia December 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. ISBN 978-92-9197-377-4 (online) CPMI-IOSCO – Implementation monitoring of PFMI: Level 2 assessment report – December 2015 iii Contents 1. Executive summary ......................................................................................................................................................... 1 1.1 Legal and regulatory framework ..................................................................................................................... 2 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 ....................................................................................................................................................................... 6 3. Overview of the regulatory, supervisory and oversight framework ............................................................ 8 3.1 Payment systems ................................................................................................................................................... 8 3.2 Central counterparties, central securities depositories and securities settlement systems ..... 9 3.3 Trade repositories ................................................................................................................................................ 10 4. Assessment and recommendations ....................................................................................................................... 12 4.1 Summary assessment of completeness and consistency with the Principles .............................. 12 4.2 Australia’s completeness and consistency with the Principles – Review and recommendations ................................................................................................................................................ 16 Annex A: List of abbreviations ................................................................................................................................................. 130 Annex B: Reference documents .............................................................................................................................................. 131 Annex C: Detailed response from the Australian authorities ...................................................................................... 133 Annex D: Allocation of responsibilities ................................................................................................................................ 134 Annex E: FMIs subject to the Principles in Australia ....................................................................................................... 136 CPMI-IOSCO – Implementation monitoring of PFMI: Level 2 assessment report – December 2015 1 1. Executive summary In April 2012, the Committee on Payments and Market Infrastructures (CPMI1) and the International Organization of Securities Commissions (IOSCO) issued the Principles for financial market infrastructures (PFMI).2 The principles within the PFMI (the Principles) set expectations for the design and operation of key financial market infrastructures (FMIs) to enhance their safety and efficiency and, more broadly, to limit systemic risk and foster transparency and financial stability. The Principles apply to all systemically important payment systems (PSs), central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs) and trade repositories (TRs) (collectively FMIs).