Chilean financial market commission CMF issued a set of rules which requires financial institutions to adhere to international standards called PFMI in order to improve the security and efficiency of financial market infrastructures.
The new requirement, which takes effect on April 1, 2019, aims to improve the resilience of the national financial market, the CMF said in a statement.
With the new standard, entities such as central counterparties and securities depositories which are under the supervision of the CMF will be required to publicly report self-evaluations on their level of compliance with the PFMI.
The PFMI is a set of international standards that seek to improve security and efficiency as well as limit systemic risk in financial market infrastructures, which include payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. The rules were established by the International Organization of Securities Commissions, or IOSCO, and the Bank for International Settlements as a response to the 2008 international financial crisis.