Principles for financial market infrastructures: Assessment methodology for the oversight expectations applicable to critical service providers

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have published the Assessment methodology for the oversight expectations applicable to critical service providers.

The Principles for financial market infrastructures, published by the then Committee on Payment and Settlement Systems (CPSS) and IOSCO in April 2012, include an annex on the oversight expectations applicable to critical service providers (Annex F). The operational reliability of a financial market infrastructure (FMI) may be dependent on the continuous and adequate functioning of third-party service providers that are critical to an FMI's operations, such as information technology and messaging providers. Although an FMI remains ultimately responsible for its operational reliability, a regulator, supervisor or overseer of an FMI may use Annex F to establish expectations specifically targeted at critical service providers.

The final document establishes an assessment methodology and provides guidance for authorities in assessing an FMI's critical service providers against the oversight expectations set out in Annex F. The assessment methodology also provides guidance to critical service providers in complying with the oversight expectations. The document was issued for consultation in December 2013.