Bank of International Settlement
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) continue to closely monitor the implementation of the Principles for financial market infrastructures (PFMI). The principles within the PFMI (the Principles) set expectations for the design and operation of key financial market infrastructures (FMIs) to enhance their safety and efficiency, and, more broadly, to limit...
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The Bank for International Settlements (BIS) is an international company limited by shares owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work through subcommittees, the secretariats it hosts and through an annual general meeting of all member banks. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.
Implementation monitoring of PFMI: Fourth update to Level 1 assessment report
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) continue to closely monitor the implementation of the Principles for financial market infrastructures (PFMI). The PFMI are international standards for payment, clearing and settlement systems, and trade repositories. They are designed to ensure that the infrastructure supporting global financial markets is robust and...
Read More »The interplay of accounting and regulation and its impact on bank behaviour
Accounting rules and disclosure standards are important determinants for banks' incentives and behaviour, and the recent financial crisis, where criticism was voiced (eg regarding the role of fair value accounting of financial assets and incurred loss provisioning of loans), is just another example of the importance and relevance of banks' financial reporting in a regulatory and supervisory context. In March 2013, the Basel Committee's...
Read More »The discontinuation of the EUR/CHF minimum exchange rate in January 2015: was it expected?
by Michael Funke, Julius Loermann and Richhild Moessner We derive risk-neutral probability densities for future euro/Swiss franc exchange rates as implied by option prices. We find that the credibility of the Swiss franc floor somewhat decreased as the spot exchange rate approached the lower bound of 1.20 CHF per euro. We also compare the forecasting performance of a random walk benchmark model...
Read More »Segmented money markets and covered interest parity arbitrage
by Dagfinn Rime, Andreas Schrimpf and Olav Syrstad This paper studies the violation of the most basic no-arbitrage condition in international finance - Covered Interest Parity (CIP). To understand the CIP conundrum, it is key to (i) account for funding frictions in U.S. dollar money markets, and (ii) to study the challenges of swap intermediaries when funding liquidity evolves differently across...
Read More »Criteria for identifying simple, transparent and comparable short-term securitisations – consultative document
The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) today released the consultative document Criteria for identifying simple, transparent and comparable short-term securitisations (the short-term STC criteria). The short-term STC criteria maintain and build on the principles in the Criteria for identifying simple, transparent and comparable securitisations issued by BCBS-IOSCO in...
Read More »Capital treatment for simple, transparent and comparable short-term securitisations – consultative document
The Basel Committee on Banking Supervision today released the consultative document Capital treatment for simple, transparent and comparable short-term securitisations. The Committee's proposed capital treatment supplements the consultative document Criteria for identifying simple, transparent and comparable short-term securitisations issued jointly with the International Organization of Securities Commissions (IOSCO). The consultative document...
Read More »Chairs’ Report on the Implementation of the Joint Workplan for Strengthening the Resilience, Recovery and Resolvability of Central Counterparties
This report describes how the 2015 workplan to strengthen the resilience, recovery and resolvability of central counterparties (CCPs) has been implemented. It was produced by the Chairs of the FSB Standing Committee on Supervisory and Regulatory Cooperation (Norman Chan), the FSB Resolution Steering Group (Elke König), the Committee on Payments and Market Infrastructures (Benoît Coeuré), the International Organization of Securities Commissions ...
Read More »Analysis of Central Clearing Interdependencies
The Committee on Payments and Market Infrastructures (CPMI), the Financial Stability Board (FSB), the International Organization of Securities Commissioners (IOSCO) and the Basel Committee on Banking Supervision (BCBS) today published a study on interdependencies in central clearing. The network relationships analysed in this report are generally characterised by a core of highly connected central counterparties (CCPs) and financial institutions...
Read More »Resilience of central counterparties (CCPs): Further guidance on the PFMI – Final report
CCPs have become increasingly critical components of the financial system in recent years, due in part to the introduction of mandatory central clearing for standardised over-the-counter derivatives in some jurisdictions. It is, therefore, vital that each CCP is sufficiently resilient to withstand clearing member failures and other stress events. The final report on Resilience of central counterparties (CCPs): Further guidance on the PFMI aims...
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