Principles for financial market infrastructures

In April 2012, the Committee on Payment and Settlement Systems (CPSS)1 and the Technical Committee of the International Organization of Securities Commissions (IOSCO) published the Principles for financial market infrastructures (PFMI), setting out more demanding international standards for systemically important financial market infrastructures (FMIs).

The standards are designed to ensure that the infrastructure supporting global financial markets is robust and able to withstand financial shocks. They apply to all systemically important FMIs, including payment systems, and replace the 2001 Core Principles for Systemically Important Payment Systems.

To facilitate implementation and promote ongoing observance of the PFMI, CPSS-IOSCO also issued the PFMI: disclosure framework and assessment methodology. 

In line with their recommendation, as well as the requirements of Regulation HH2, we publish a PFMI Disclosure which is updated, at a minimum, every two years, or following material changes to our operations. The disclosure describes our approach to observing applicable principles during daily operations as a payments system in alignment with the expectations and requirements of our regulators. 

The latest publicly available version of our disclosure can be found here. Any questions may be directed to Irene Mustich in CLS’s Regulatory Affairs team.

1 Effective September 1, 2014, the CPSS changed its name to the Committee on Payments and Market Infrastructures (CPMI)

2 In 2012, CLS Bank was designated a systemically important financial market utility (FMU) by the United States Financial Stability Oversight Council under Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Board of Governors of the Federal Reserve System’s Regulation HH requires designated FMUs for which the Board of Governors of the Federal Reserve is the “Supervisory Agency” (as defined by the Dodd-Frank Act) to publish a disclosure of rules, key procedures, and market data.

PFMI Disclosure

CLS publishes its Principles for Financial Market Infrastructures (PFMI) Disclosure Framework, which describes the o…