Switzerland's legal, regulatory and oversight frameworks for financial market infrastructures (FMIs) are generally consistent with the principles for financial market infrastructures (PFMI), with some exceptions, according to the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).
The CPMI and IOSCO made the assessment in a joint white paper, entitled ‘Implementation monitoring of PFMI: Assessment report for Switzerland’, which reflects the status of Switzerland's framework as of 30 June 2017.
Level 2 assessments focus on whether, and to what degree, the content of a jurisdiction's legislation, regulations and policies for systemically important payment systems (PSs), central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs) and trade repositories is complete and consistent with the PFMI.
The report found Swiss regulations have generally implemented the PFMI, although some gaps and inconsistencies of varying significance were identified, mainly for Principles 7 on liquidity risk and 22 on communication procedures and standards (as applicable to PSs, CSDs, SSSs, and CCPs.
According to the Bank of International Settlements, Swiss authorities welcomed the assessment and indicated that the relevant recommendations would be given careful consideration in any future amendment to the regulatory framework.
The CPMI and IOSCO said they will continue to focus their implementation monitoring efforts on assessing the completeness and consistency of jurisdictions' implementation measures with the PFMI (level two assessments) and the consistency in the outcomes of the implementation of the PFMI by FMIs (level three assessments).
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