Financial Market Infrastructures Oversight

Oversight Framework

The Central Bank of Cyprus (CBC) applies the Eurosystem oversight policy framework, whose oversight objective entails safeguarding and promoting the safety and efficiency of financial market infrastructures (FMIs).

Oversight Standards

The oversight standards for all types of FMIs are the CPSS-IOSCO Principles for financial market infrastructures (PFMIs), which have been largely endorsed in European Union legislation, as well as in the Eurosystem’s oversight framework and methodology.

Oversight is conducted for all types of FMIs, according to applicable frameworks/standards/regulations. In specific:

(a)  ECB Regulation on oversight requirements for systemically important payment systems, (SIPS Regulation), as amended (2017, 2021) applies to systemically important payment systems (SIPS).  Two implementing decisions are also applicable for SIPS, these being:

    (i)  Decision of the ECB, as amended, on procedural aspects concerning the imposition of corrective measures for non-compliance with the SIPS Regulation, and

   (ii) Decision of the ECB, as amended, on the procedure and conditions for exercise by a competent authority of certain powers in relation to oversight of systemically important payment systems.

(b)  Revised Eurosystem assessment methodology for payment systems, applies to systemically important payment systems (SIPS) & retail payment systems.

(c)  Revised oversight framework for retail payment systems (OFRPS), applies to non-systemically important retail payment systems.

(d)  Oversight expectations for links between retail payment systems (OELRPS) applies to links between retail payment systems.

(e)  Central Securities Depositories Regulation (CSDR), as amended (CSDR Refit), applies for central securities depositories.

(f)  European Market Infrastructure Regulation (EMIR), applies for central counterparties and trade repositories.

Eligibility assessments of the Central Depository Central Registry

Classification of payment systems and Settlement Finality Directive designation