Global regulators Tuesday published a consultation report concerning new disclosure standards for central counterparties (CCPs).
The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) published for public comment a consultation that aims to provide guidance on what should be disclosed by a CCP and other financial market infrastructure firms. The regulators stress that CCPs need to make relevant information publicly available so that the risks about the use of CCPs can be properly understood.
The regulators published a disclosure framework in December 2012 covering qualitative data that need relatively infrequent updating. The document now being published sets out guidance on the quantitative data that a CCP should disclose more frequently.
Taken together, the disclosures are intended to enable regulators, market participants, and the public, to: compare CCP risk controls, including financial condition and financial resources to withstand potential losses; have a full understanding of the risks associated with a CCP; understand and assess a CCP’s systemic importance and its impact on systemic risk; and, to assess the risks of participating in CCPs.
Comments on the report are due by December 13.