April 16, 2012 - International banking and securities regulators have set out new and more demanding standards for operators of payments, clearing and settlement systems as part of an international effort to boost the resiliency of the financial markets.

The new principles, published by the Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (Iosco), replace three existing sets of standards governing the operation of payments and settlement systems and central counterparties.

CPSS and Iosco say market participants should strive to adopt the new standards by the end of 2012. Systemically important financial market infrastructures (FMIs) will be expected to get in line "as as soon as possible".

The principles are being introduced as part of a fundamental shake-up of market infrastructure in the wake of the financial crisis of 2008. They arrive two weeks after the European Union waved through tough new rules mandating a shift of over-the-counter derivatives trading to central clearing counterparties.

William Dudley, president, Federal Reserve Bank of New York and a co-chair of the CPSS-Iosco work on the standards, notes: "Under the new regime of central clearing for standardised OTC derivatives trades, the role of FMIs will become even more important in the future. The principles provide an important safeguard that FMIs will be robust enough to take on this role".

Comments on the proposals are invited under a 15 June deadline.

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