Wednesday February 28 2024
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: Argentina
The National Securities Commission (CNV) approved a reform of the regulatory framework regarding Financial Market Infrastructures, applicable to markets and clearinghouses.
RG 993 provides for modifications in terms of comprehensive risk management, including disclosure of internal rules and procedures, with a view to improving their identification, monitoring, mitigation and administration.
The reform implements high-level international standards, including recommendations issued by the International Organization of Securities Commissions (IOSCO) and the Committee on Payments and Market Infrastructures (CPMI).
The Principles for Financial Market Infrastructures are contemplated, which contributes to strengthening the transparency of the capital market with coherent and effective supervision practices.
It is established that the markets and clearinghouses, when they guarantee compliance with the operations authorized by the CNV by performing the role and functions of central counterparty (CCP), must have a structure and good governance mechanisms aimed at promoting and implement a comprehensive risk management framework, in order to identify and manage potential events that may negatively impact the operations and services they provide.
The guidelines to be followed by the markets and clearinghouses are regulated when providing information regarding the assets and/or negotiable securities that have been contributed to the Guarantee Funds in operations authorized by the CNV and arranged in guaranteed trading segments, for consideration as qualified central counterparty entities (QCCP) and the consequent calculation of capital requirements for counterparty credit risk within the framework of the provisions of the Central Bank of the Argentine Republic (BCRA).
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