International Organization of Securities Commissions

BCBS Publishes Report on Outcome of February 2019 Meeting

Posted on

 

From the February 27 to 28 meeting, the Basel Committee on Banking Supervision (BCBS) has published this press release with the outcome.

At the meeting the Committee:

  • Agreed to publish high-level supervisory expectations related to crypto-assets considering the high degree of risks associated with such exposures. These expectations will be published in March.
  • Reiterated its support for reforms of interest rate benchmarks and approved a work plan to look at the interactions with supervisory requirements.
  • Agreed to publish, in March, a summary of the different practices used by jurisdictions to proportionately apply the global minimum prudential standards.
  • Announced it would publish, in March, a joint statement with the International Organization of Securities Commissions (IOSCO) clarifying certain implementation aspects of the margin requirements framework.

ECB Consults on Cyber Resilience Oversight Expectations for FMIs

Posted on

 

The European Central Bank (“ECB“) published for consultation a draft version of the cyber resilience oversight expectations (“CROE“) for financial market infrastructures (“FMIs“) on April 10, 2018.

The CROE are based on guidance on cyber resilience for FMIs that was published by the Committee on Payments and Market Infrastructures (“CPMI“) and the International Organization of Securities Commissions (“IOSCO“) in June 2016. The 2016 guidance was immediately applicable and the CROE form part of the oversight of the guidance, setting out assessment criteria for supervisors to use.

The CROE also provides FMIs in the euro area with steps on how to implement the guidance and enhance their cyber resilience.

In line with the guidance, the CROE covers five primary risk management categories:

(i).   Governance.

(ii).  Identification.

(iii). Protection.

(iv). Detection.

(v).  Response and recovery.

It also covers three overarching components which relate to testing, situational awareness, and learning and evolving.

The CROE use a maturity model that provides supervisors and FMIs with a benchmark against which they can evaluate FMIs’ current level of cyber resilience, measure progression and establish priority areas for improvement.

The webpage for the consultation invites FMIs and other interested parties to provide their input on the draft CROE. The deadline for responses is June 5, 2018.

The ECB provided an overview of the Eurosystem cyber resilience strategy for FMIs in a speech in November 2017.

Second ECB Consultation on New Euro Unsecured Overnight Interest Rate

Posted on

 

On March 15, 2018, the European Central Bank (“ECB“) published its second consultation paper on a new euro unsecured overnight interest rate, available here.

The ECB announced in September 2017 that it intended to start providing a euro unsecured overnight interest rate based on data already available to the Eurosystem (that is, the rate will be calculated entirely on transactions in euro that are reported by banks in the ECB’s money market statistical reporting (“MMSR“)). The ECB aims to produce the new rate before 2020 and plans for it to be consistent with the principles on financial benchmarks developed by the International Organization of Securities Commissions (“IOSCO“). The interest rate will complement existing benchmark rates produced by the private sector and will serve as a backstop reference rate.

IOSCO Publishes Report on Post-Trade Transparency in the Credit Default Swaps Market

Posted on

On November 17, the International Organization of Securities Commissions (IOSCO) published a report (CR08/2014) on post-trade transparency in the credit default swaps market. The report analyzes the potential impact of mandatory post-trade transparency in the credit default swaps market and identifies certain potential benefits and costs to mandatory post-trade transparency.  Comments are invited on the report by February 15, 2015.  Report.