MEFMI/IMF/ HOLD WORKSHOP ON CPSS/ IOSCO PRINCIPLES FOR FINANCIALMARKET INFRASTRUCTURES

Financial market infrastructures (FMIs) facilitate the clearing, settlement, and recording of monetary and other financial transactions and are critical for the effective conduct of monetary policy. They enable improved risk management and can strengthen the markets they serve. However, if not properly managed, they can pose significant risks to the financial system and be a potential source of contagion, particularly in periods of market stress.

As a result of their critical importance for financial stability, risk management standards have been promulgated for the operations of FMIs and oversight responsibilities for regulators, supervisors and overseers of these systems. These are the Principles for Financial Market Infrastructures (PFMI) published in 2012 by the Committee on Payment and Settlement Systems (CPSS) of the Bank for International Settlements (BIS) and the Technical Committee for the International Organization of Securities Commissions (IOSCO). The PFMI provide guidance for addressing risks and efficiency in FMIs.

To ensure compliance with the Principles and equip officials with the skills to conduct self-assessments, the IMF East Afritac and South Afritac in collaboration with MEFMI organised a regional training on the PFMI. The workshop was held from 10-13 December 2019 at the Africa Training Institute (ATI) in Ebene, Mauritius.

The Director of the Afritac South, Mr Abdoul Aziz Wane, officiated at the opening ceremony. He noted the critical role sound payment infrastructures play in promoting safety and efficiency in financial markets and advancing financial inclusion. He added that the PFMI are the bedrock on which countries can develop their payment systems oversight frameworks, customized to their local environments. He emphasized the need for cooperation among relevant authorities, both domestically and internationally. Cooperation among authorities is necessary as it fosters efficient and effective communication and consultation and provides mutual support for each authority to fulfill its individual mandate. He encouraged the delegates to use the workshop as a forum for peer-to-peer learning and networking. He recognized MEFMI for its support towards the event and affirmed the IMF’s commitment to building capacity in the region.

The workshop was attended by 33 participants from 17 countries in Eastern and Southern Africa.

The course enhanced the confidence and ability of the participants to conduct PFMI self-assessments. It is expected that the knowledge acquired during the training will empower participants to promote consistent implementation and ongoing observance of the Principles.