Principles for Financial Market Infrastructures: Update

2021 - YEAR OF TRIBUTE TO THE NOBEL PRIZE IN MEDICINE DR. CÉSAR MILSTEIN

COMMUNICATION “A” 7338
05/08/2021

TO FINANCIAL INSTITUTIONS,
TO OTHER NON-FINANCIAL CREDIT PROVIDERS, TO ELECTRONIC CLEARING HOUSES, TO COMPANIES ADMINISTERING ATM NETWORKS, TO FINANCIAL MARKET INFRASTRUCTURES:

Ref.: Circular
SINAP 1-136:

Principles for Financial Market Infrastructures. Update. ___________________________________________________________________________

We address you to send you the pages that, in replacement of those previously provided, should be incorporated into the reference standards based on the provisions disseminated through Communications “B” 11056, “A” 6904 and “B” 12193.

It is noted that on the page of this Institution www.bcra.gob.ar, by accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK – Ordering and summaries – Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

María Eugenia Limeres
Deputy Manager of Systems of Securities Luis A. D’Orio Principal Manager of Payment Systems and Current Accounts

ANNEX

B.C.R.A. ORDERED TEXT OF THE STANDARDS ON “PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURES”

-Index-

Section 1. General provisions

1.1. Definitions

1.2. Scope

1.3. Criteria for observance

Section 2. Evaluation of financial market infrastructures

2.1. Criteria for the determination of systemically important payment systems (SIPS)

2.2. Periodicity of the application of the criteria

Section 3. Procedure for compliance with the “Principles for Financial Market Infrastructures” (PFMI) by the SIPS

3.1. Self-assessment

3.2. Adequacy

3.3. Disclosure

Section 4. Fundamental considerations of the PFMI

4.1. Legal soundness

4.2. Good governance

4.3. Framework for comprehensive risk management

4.4. Credit risk

4.5. Collateral

4.6. Liquidity risk

4.7. Final settlement (settlement finality)

4.8. Monetary settlements

4.9. Settlement of exchange-for-value

4.10. Rules and procedures

4.11. General business risk

4.12. Custody and investment risks

4.13. Operational risk

4.14. Access and participation criteria

4.15. Multi-level participation mechanisms

4.16. Efficiency and effectiveness

4.17. Communication procedures and standards

4.18. Disclosure of rules, procedures and key market data

Section 5. List of SIPS

5.1. List

5.2. Scopes

Correlation table

B.C.R.A. PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURES
Section 2. Assessment of financial market infrastructures.

a) Significant net debtor positions, or

b) Clearing ratio equal to or less than 10%.

2.2. Frequency of application of the criteria

2.2.1. The BCRA will assess financial market infrastructures annually or when significant changes occur in the markets, systems and/or in the volumes traded. For this purpose, it will apply the criteria established in point 2.1. and will determine the FMIs that must comply with the procedure established in Section 3. and the key considerations of the PFMI contained in Section 4. Updates to the list of FMIs will be disclosed through Communication "B".

2.2.2. The FMIs whose list has been disclosed as specified in point 2.2.1. will have a period of 6 months to carry out the necessary adjustments aimed at the effective observance of the PFMI and the considerations set forth in Section 4.

B.C.R.A. PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURES
Section 5. List of FMIs.

5.1. List

The following FMIs must comply with the application of the principles within the framework of a periodic comprehensive review and taking into account the guidelines established in these rules:

• Electronic Payment Medium (MEP)

• High Value Chamber –INTERBANKING–

• Low Value Chamber –Compensadora Electrónica S.A. (COELSA)–

• ATM Networks –LINK and BANELCO–

• Central Registry and Settlement of Public Debt Instruments (CRYL)

• Caja de Valores S.A. (CVSA)

• Argentina Clearing y Registro S.A. (ACyRSA)

• Mercado Argentino de Valores S.A. (MAV)

5.2. Scope.

5.2.1. CVSA, ACyRSA and MAV are authorized to perform the functions of manager of checks generated by electronic means (ECHEQ) and to connect, for these purposes, to the ECHEQ Storage System, administered by COELSA.

5.2.2. The FMIs mentioned in point 5.2.1. are authorized to perform the functions of manager for electronic MiPyME credit invoices (FCEM), by virtue of the provisions of point 3.5.5.2. of the rules on "National Payment System – Checks and other negotiable instruments".

5.2.3. CVSA is authorized to carry out the custody of ECHEQ and FCEM for their negotiation in markets authorized by the National Securities Commission (CNV).

5.2.4. FCEM may be transmitted to CVSA and/or ACyRSA for their negotiation when those markets engage tools or computer systems contemplated in article 13 of Law 27440 (and its amendments and supplements) and for their negotiation under any authorized modality in which a registered market does not participate, in accordance with the rules of the CNV (N.T. 2013 and mod).

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURES"

TEXT AS AMENDED	SOURCE RULE						OBSERVATIONS
Sect.	Point	Para.	Comm.	Annex	Chap.	Sect.	Point	Para.
1.	1.1.		"A" 5775
	1.2.		"A" 5775
	1.3.		"A" 5775
2.	2.1.		"A" 5775
	2.2.		"A" 5775
	2.2.1		"A" 5775
	2.2.2		"A" 5775						S/Com. "A" 7338
3.	3.1.		"A" 5775
	3.2.		"A" 5775
	3.3.		"A" 5775
4.	4.1.		"A" 5775
	4.2.		"A" 5775
	4.3.		"A" 5775
	4.4.		"A" 5775
	4.5.		"A" 5775
	4.6.		"A" 5775
	4.7.		"A" 5775
	4.8.		"A" 5775
	4.9.		"A" 5775
	4.10.		"A" 5775
	4.11.		"A" 5775
	4.12.		"A" 5775
	4.13.		"A" 5775
	4.14.		"A" 5775
	4.15.		"A" 5775
	4.16.		"A" 5775
	4.17.		"A" 5775
	4.18.		"A" 5775
5.	5.1.		"B" 11056						S/Com. "A" 6904 and 7338
	5.2.		"A" 6904						S/Com. "A" 7338 and "B" 12193.