WFE response to CPSS-IOSCO consultation on market infrastructures, 29 July 2011


The World Federation of Exchanges (“WFE”)[1] welcomes the CPSS-IOSCO Public Consultation on Principles for Financial Market Infrastructures (“FMIs”), and takes this opportunity to comment on the direction in which regulators may advance on several of the interconnected issues set forth in the Consultation Report[2]


WFE agrees that a global review of market infrastructure institutions is important stock-taking in light of financial market events and operating conditions post-2007. The goal of creating a single set of overarching standards is valuable for WFE and its members, as with International Financial Reporting Standards, the OECD’s Principles of Corporate Governance, and IOSCO’s Principles of Regulation. The member exchanges have voted measures of public endorsement for them in years past, precisely because they promote a sounder global financial system. In this case, the CPSS-IOSCO idea of updating and synthesizing pre-existing work also makes good sense to move ahead in this direction. 

[1] WFE is a non-profit trade association of publicly regulated stock, futures and options exchanges operating worldwide. The Federation contributes to the development, support and promotion of organized and regulated securities and derivatives markets. WFE is an affiliate member of IOSCO.

[2] WFE wishes to acknowledge the help in preparing this response of Thomas Murray, the London firm which helps institutional investors manage the costs and risks of buying, selling, safekeeping, valuing and servicing portfolios of cash and securities. The second essential source of expertise came from CCP12, the not-for-profit global association of central counterparties, with a membership encompassing over 35 individual CCPs from all over the world. Lastly, the WFE Secretariat acknowledges the ideas shared by the World Forum of CSDs.

Report Date: 
Mon, 08/01/2011