International Organisation of Securities Commissions has commenced the process of monitoring the implementation of the Principles for Financial Market Infrastructures.
The body said in a statement on Wednesday that it was partnering the Committee on Payment and Settlement Systems to ensure the achievement of the principles.
The PFMIs, according to the statement, are international standards for payment, clearing and settlement systems, including central counterparties, and trade repositories.
It added that they were designed to ensure that the infrastructure supporting global financial markets was robust and well placed to withstand financial shocks.
The PFMIs were issued by CPSS-IOSCO in April 2012 and jurisdictions around the world are currently in the process of implementing them into their regulatory frameworks to foster the safety, efficiency and resilience of their financial market infrastructures.
According to the statement, the implementation of the PFMIs will help to guard against a reoccurrence of the global financial meltdown recorded a few years ago.
It said, “Full, timely and consistent implementation of the PFMIs is fundamental to ensuring the safety, soundness and efficiency of key FMIs and for supporting the resilience of the global financial system.
“In addition, the PFMIs play an important part in the G20’s mandate that all standardised over-the-counter derivatives should be centrally cleared. Global central clearing requirements reinforce the importance of strong safeguards and consistent oversight of derivatives central counterparties in particular.”
It added that CPSS and IOSCO members remained committed to the principles and responsibilities contained in the PFMIs in line with the G20 and financial stability board expectations.
According to the statement, the monitoring will cover the implementation of the principles contained in the PFMIs as well as responsibilities, adding that reviews will be carried out in stages.
It said, “Such reviews would assess first whether a jurisdiction has completed the process of adopting the legislation and other policies that will enable it to implement the principles and responsibilities.
“Assessments will also examine consistency in the outcomes of implementation of the principles by FMIs and implementation of the responsibilities by authorities. The results of the assessments will be published on both CPSS and IOSCO websites.”
It said the assessments would cover the following jurisdictions: Argentina, Australia, Belgium, Brazil Canada, Chile, China, European Union, France, Germany, Hong Kong SAR, Indonesia, India, Italy, Japan and Korea. Others are Mexico, Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.
“A first assessment is currently underway, examining whether jurisdictions have made regulatory changes that reflect the principles and responsibilities in the PFMI; results of this assessment are due to be published in the third quarter of 2013,” the statement added.