Derivatives (MAOF) Clearing House - CPMI-IOSCO Disclosures
In April 2012, the Committee on Payment and Market Infrastructure (“CPMI”), which operates under the Bank for International Settlements (“BIS”), together with the Technical Committee of the International Organization of Securities Commissions (“IOSCO”), also “CPMI-IOSCO”, published a document of principles regulating the activities of financial market infrastructures – “Principles for Financial Market Infrastructure” (“PFMI”).
The PFMI document contains 24 core principles (“the Core Principles”) relating to a broad range of aspects intended to ensure the proper management and financial stability of the financial market infrastructures, and as a result to ensure the stability of the relevant financial market served by these infrastructures.
The ISA adopted the Core Principles set forth by CPMI-IOSCO in the PFMI document and stipulates provisions that aim to ensure the proper operation and financial stability of the TASE-CH and MAOF-CH (“the Clearing Houses’ Stability Directive”).
On June 29, 2017 the ISA announced that MAOF-CH can be regarded as acting in accordance with the Core Principles.
In accordance with the Core Principles, MAOF-CH is required to evaluate and publish the manner in which it applies the Core Principles according to the valuation methodology and disclosure framework set by CPMI-IOSCO in December 2012 ("Qualitative Disclosure").
In addition, as a Central Counterparty (CCP), MAOF-CH is also required to publish supplementary quantitative information for certain Core Principles according to the framework set in principle by CPMI-IOSCO in February 2015 ("Quantitative Disclosure").
On December 31, 2017, MAOF-CH completed for the first time its self-assessment for 2017, which was conducted in accordance with the methodology described above, and the highlights of which are described and set forth for the benefit of the public in the Disclosure Document below.