Central Counterparties Fail to Live Up to PFMI Expectations

[kreslik.news]

The Committee On Payments and Market Infrastructures (CPMI) released its level three assessment of central counterparties (CCP) operating under the principles for financial market infrastructures (PFMI) this Wednesday. While the assessment was a peer-benchmarking exercise, and not a supervisory one, it did reveal several key areas that CCPs need to improve on in order to meet regulatory requirements.

PFMI regulation stretches back to 2011 when the CPMI first issued a consultation paper. Run in conjunction with theInternational Organization of Securities Commissions (IOSCO), the guidelines set out in PFMI aim to ensure that payment, clearing and settlement ... (read more)