The PFMI Core Principles
It is the Bank’s aim that systemically important payment and settlement systems comply with both international and domestic requirements. Chief among these are the 10 Core Principles for Systemically Important Payment Systems, the CPSS/IOSCO recommendations for securities settlement systems, European Union law and directives on payment intermediation, and the Icelandic regulatory framework. The systems shall be transparent, efficient, and safe, and their structure shall take account of their importance in promoting financial stability. In accordance with foreign models, the Central Bank of Iceland has an important role to play in promoting this:
- Policy-making role – the formulation of policy related to system development;
- Regulatory role – preparation and adoption of rules for the systems;
- Catalyst role – the promotion of market solutions and the assumption of initiative in matters related to payment and settlement systems;
- Operational role – the operation of the RTGS system and the execution of settlement in the netting and securities settlement systems;
- Oversight role – monitoring of the systems in accordance with international standards.
According to Governor’s Decision no. 1242 of 18 October 2013, the criteria of the new BIS/IOSCO Core Principles for Financial Market Infrastructures (PFMI) shall form the basis of the Central Bank’s oversight and operation of systemically important financial market infrastructure in Iceland.
In order for Financial Market Infrastructures to enhance their cyber resilience the PFMI Core Principles have been supplemented with a specific Guidance on cyber resilience for financial market infrastructures.