Alert March 15, 2011

CPSS and IOSCO Publish Consultative Report on the Principles for Financial Market Infrastructures

The Committee on Payment and Settlement Systems (“CPSS”) and the Technical Committee of the International Organization of Securities Commissions (“IOSCO”) published for comment a consultative report on the Principles for Financial Market Infrastructures (the “Report”).  The Report contains a single, comprehensive set of twenty-four principles designed to apply to all systemically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.  The proposed principles, which are designed to ensure that the essential infrastructure supporting global financial markets is more robust and better positioned to withstand financial shocks, would replace existing CPSS and CPSS-IOSCO standards for payment, clearing, and settlement systems previously published in the Core Principles for Systemically Important Payment Systems, Recommendations for Securities Settlement Systems, and Recommendations for Central Counterparties, and for the first time introduce principles for trade repositories.  The Federal Reserve Board, the SEC, and the CFTC have encouraged interested parties to review and comment on the Report.  Comments are due by July 29, 2011.