Public Consultation: Policy guidance on the Bank of Canada’s risk-management standards for designated financial market infrastructures - Standard 2: Governance
The Bank of Canada, jointly with l'Autorité des marchés financiers (Quebec), British Columbia Securities Commission and Ontario Securities Commission, today published draft policy guidance related to the Bank’s risk management standards for designated Canadian financial market infrastructures (FMIs).
The Bank of Canada adopted the Principles for Financial Market Infrastructures (PFMIs) into its risk-management standards for designated FMIs in 2012. The Bank is developing supplementary guidance in coordination with l'Autorité des marchés financiers (Quebec), British Columbia Securities Commission and Ontario Securities Commission to provide additional context and clarity on certain aspects of these new standards in the Canadian context.
Both areas of guidance published today relate to standard 2 on governance.
- Financial stability and other public interest considerations contains guidance on how FMIs should incorporate financial stability and other public interest objectives into their broader business objectives.
- Vertically and horizontally integrated FMIs contains guidance on mitigating risks from interdependencies of FMIs under common ownership.
Comments on the two policies can be emailed by 18 March 2014 to the Bank of Canada at PFMIfirstname.lastname@example.org.
A copy should also be provided to l'Autorité des marchés financiers (Quebec) at email@example.com, British Columbia Securities Commission at firstname.lastname@example.org and Ontario Securities Commission at email@example.com.
These are the first two in a series of ten FMI risk-management guidance pieces that the Bank of Canada will publish for consultation in coordination with the listed provincial authorities. The full list of guidance under development is available on the Risk-management standards for designated FMIs page in the Financial System section of the Bank’s website.
The Bank will share all comments received through this consultation with the authorities involved in the guidance development and will post the comments on its website. Once the guidance is finalized, the Bank and listed provincial authorities will consult with Canadian designated FMIs about timelines for aligning with the new guidance.
Bank of Canada