Implementation monitoring of PFMI: Level 2 assessment report for the European Union – PSs and CSDs/SSSs

The Bank for International Settlements' Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) closely monitor the implementation of the Principles for financial market infrastructures (PFMI). This report presents the conclusions drawn by CPMI-IOSCO from a Level 2 assessment of whether, and to what degree, the legal, regulatory and oversight framework for financial market infrastructures (FMIs) in the EU for systemically important payment systems (PSs) and central securities depositories (CSDs)/ securities settlement systems (SSSs) are complete and consistent with the Principles. 

The assessment finds that - as October 2019 - the EU legal, regulatory and oversight framework are complete and consistent with the PFMI for PSs. Given that there are separate regulatory frameworks for PSs in the euro area and in Sweden, and that these are also separate from the EU-wide regime for CSDs/SSSs, the assessment team has assessed each of these separately.

The legal, regulatory and oversight frameworks in the EU for CSDs/SSSs are complete and consistent with the Principles in most aspects. However, the assessment identified some areas for improvement, particularly in aspects where implementation was broadly, partly, or not consistent, including risk and governance principles.