By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The International Organisation of Securities Commission (IOSCO) and Committee on Payments and Market Infrastructures (CPMI) on Thursday published Public Quantitative Disclosure Standards for Central Counterparties.
IOSCO, CPMI says the standards is to help ensure that the risks of using central counterparties (CCPs) are properly understood, CCPs need to make relevant information publicly available, as stated in the CPSS-IOSCO Principles for financial market infrastructures, published in April 2012,” a joint statement from IOSCO CPMI said.
According to the statement, the CPSS and IOSCO published a a Disclosure framework in December 2012 to improve the overall transparency of financial market infrastructures.
“That framework primarily covers qualitative data that need relatively infrequent updating (for example, when there is a change to a CCP’s risk management framework). To complement that disclosure framework, the document now being published sets out the quantitative data that a CCP should disclose more frequently,” the joint statement affirmed.
Also, the joint regulatory bodies said taken together with the disclosure framework, the proposed disclosures in this document are intended to help stakeholders, including authorities, participants (direct, indirect and prospective) and the public, to compare CCP risk controls, including financial resources to withstand potential losses, have a clear and accurate understanding of the risks associated with a CCP.
Other intents of the disclosure include understanding and assessing a CCP’s systemic importance and its impact on systemic risk and understanding and assessing the risks of participating in a CCP (directly, and, to the extent relevant, indirectly).
