Principles for financial market infrastructures: Disclosure framework and Assessment methodology

Committee on Payment and Settlement Systems Board of the International Organization of Securities Commissions Principles for financial market infrastructures: Disclosure framework and Assessment methodology December 2012 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 2012. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISBN 92-9131-899-X (print) ISBN 92-9197-899-X (online) CPSS-IOSCO – Disclosure framework and assessment methodology – December 2012 iii Preface In April 2012, the CPSS and IOSCO published the report Principles for financial market infrastructures (PFMI), which establishes new international standards for payment systems that are systemically important, central securities depositories, securities settlement systems, central counterparties and trade repositories. The present report contains the CPSS-IOSCO Disclosure framework for financial market infrastructures (“disclosure framework”) and the CPSS-IOSCO Assessment methodology for the principles for FMIs and the responsibilities of authorities (“assessment methodology”) referenced in the PFMI. The disclosure framework prescribes the form and content of the disclosures expected of FMIs. The assessment methodology provides guidance to assessors for evaluating observance of the 24 principles and five responsibilities set forth in the PFMI. CPSS-IOSCO – Disclosure framework and assessment methodology – December 2012 v Contents Preface .................................................................................................................................... iii Abbreviations .......................................................................................................................... vii 1.0. Introduction ...................................................................................................................... 1 Purpose of the disclosure framework and assessment methodology ............................. 1 Use of the disclosure framework ..................................................................................... 2 Use of the assessment methodology .............................................................................. 2 General considerations for conducting assessments ...................................................... 3 Organisation of the report ................................................................................................ 4 2.0. Disclosure framework for FMIs ........................................................................................ 5 Objective of the disclosure framework ............................................................................ 5 General instructions for completing the disclosure template ........................................... 5 3.0. Assessment methodology for the principles for FMIs ...................................................... 7 General considerations ................................................................................................... 7 General instructions for completing an assessment of the principles .............................. 7 Step 1: Determine the appropriate scope of the assessment ................................ 7 Step 2: Gather facts on each applicable key consideration ................................... 9 Step 3: Develop key conclusions for each principle ............................................. 10 Step 4: Assign a rating for each principle ............................................................. 10 Step 5: Indicate the appropriate time frame for addressing each issue of concern ................................................................................................... 12 Step 6: Prepare an assessment report ................................................................ 12 4.0. Assessment methodology for the responsibilities of authorities .................................... 13 General instructions for completing an assessment of the responsibilities ................... 13 Step 1: Determine the appropriate scope of the assessment .............................. 13 Step 2: Gather facts on each key consideration .................................................. 13 Step 3: Develop key conclusions for each responsibility ..................................... 14 Step 4: Assign a rating for each responsibility ..................................................... 14 Step 5: Indicate the appropriate time frame for addressing each issue of concern ................................................................................................... 16 Step 6: Prepare an assessment report .............................