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Release of the 2015 Bank of Canada FMI Oversight Activities Annual Report

The Bank of Canada today published the 2015 annual report on its oversight of payment, clearing and settlement systems, which are also known as financial market infrastructures or FMIs.

The Bank’s FMI oversight mandate is to promote the safety and efficiency of the Canadian financial system through sound risk management at the FMIs the Bank has designated. The purpose of the Bank of Canada FMI Oversight Activities 2015 Annual Report is to inform stakeholders about key risk-management matters with regard to the designated FMIs, including both the Bank’s own oversight priorities and the risk-management enhancements pursued by the designated FMIs.

The Bank made significant progress in its oversight priorities for 2015, enhancing the frameworks that govern the Bank’s oversight activities and moving forward with important policy developments, including proposals for the development of a resolution regime for designated FMIs in Canada and implementing the Bank’s expanded role with regard to prominent payment systems. Many of these priorities are multi-year initiatives and will continue in 2016.

Priorities for designated domestic FMIs – The designated domestic FMIs made substantial enhancements to their risk-management practices throughout 2015, as they work towards full observance of the Bank’s Risk-Management Standards for Systemic FMIs—standards that fully incorporate the Principles and Key Considerations articulated in the CPMI-IOSCO Principles for financial market infrastructures (PFMIs). Further enhancements to strengthen observance of the Bank’s standards will be a focus of the designated FMIs in 2016, including enhancements to observe the Bank’s new Risk-Management Standards for Prominent Payment Systems for applicable systems. 

Priorities for designated foreign FMIs – For foreign-domiciled FMIs, the Bank conducts its oversight primarily through co-operative oversight colleges led by a foreign lead regulator. Both CLS Bank and LCH.Clearnet SwapClear made progress to ensure observance of regulations in their respective home jurisdictions.

For further information, please contact:

Assistant Chief
Financial Stability Department
Bank of Canada

Bank of Canada

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