{
  "title": "Canada: Financial Sector Assessment Program-Technical Note-Oversight of Financial Market Infrastructures and Fintech Development",
  "publication": "IMF Staff Country Reports, January 24, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/01/23/canada-financial-sector-assessment-program-technical-note-oversight-of-financial-market-48976",
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  "summary": "This paper reviews assessment of financial market infrastructures (FMIs) and authorities’ responsibilities in Canada. The report shows that the FMIs have operated normally under a well-established legal and oversight framework that is distinct for Canada.",
  "sections": [
    {
      "heading": "Assessment overview",
      "content": "- Reviews assessment of financial market infrastructures (FMIs) and authorities’ responsibilities in Canada.\n- Finds FMIs have operated normally under a well-established legal and oversight framework that is distinct for Canada.\n- The Bank of Canada (BOC) has issued a Guideline that defines the criteria for identifying FMIs.\n- Recognition of a clearing agency is required under provincial securities legislation where terms and conditions and the clearing rule would apply."
    },
    {
      "heading": "Legal and oversight framework",
      "content": "- Oversight is split between the Bank of Canada and provincial securities regulators.\n- The current oversight approach can benefit from stronger enforcement powers available to the BOC.\n- Provincial securities regulators are encouraged to train FMI oversight staff in advanced quantitative skills to support risk assessment."
    },
    {
      "heading": "Operational risks, liquidity, and cyber resiliency",
      "content": "- Further enhancement in managing liquidity and operational risks will help ensure the robust functioning of FMIs.\n- Improvements in cyber resiliency continue in line with international guidance, including industry-wide exercises carried out by FMI operators and participants.\n- Compliance to endpoint security needs to be tightened by self-attestations and audits of FMI participants.\n- The categorization and reporting of operational incident severity levels could be further coordinated."
    },
    {
      "heading": "Key recommendations and policy implications",
      "content": "- Strengthen enforcement powers available to the Bank of Canada.\n- Provide advanced quantitative training for FMI oversight staff at provincial securities regulators to improve risk assessment.\n- Enhance liquidity risk management and operational risk controls across FMIs.\n- Tighten endpoint security compliance through self-attestations and audits of FMI participants.\n- Coordinate categorization and reporting of operational incident severity levels across authorities and FMI operators."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Publication date: January 24, 2020\n- Pages: 37\n- Volume: 2020\n- Issue: 022\n- Series: Country Report No. 2020/022\n- DOI: https://doi.org/10.5089/9781513527222.002\n- Stock No: 1CANEA2020007\n- ISBN: 9781513527222\n- ISSN: 1934-7685\n\nInternational Monetary Fund. Monetary and Capital Markets Department \"Canada: Financial Sector Assessment Program-Technical Note-Oversight of Financial Market Infrastructures and Fintech Development\", IMF Staff Country Reports 2020, 022 (2020).\n\n---\n\n Content in this bundle\n\n- Executive Summary\n  - Executive Summary (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Executive Summary (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: January 24, 2020",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513527222.002",
    "Reviews assessment of financial market infrastructures (FMIs) and authorities’ responsibilities in Canada.",
    "Finds FMIs have operated normally under a well-established legal and oversight framework that is distinct for Canada.",
    "The Bank of Canada (BOC) has issued a Guideline that defines the criteria for identifying FMIs.",
    "Recognition of a clearing agency is required under provincial securities legislation where terms and conditions and the clearing rule would apply.",
    "Oversight is split between the Bank of Canada and provincial securities regulators.",
    "The current oversight approach can benefit from stronger enforcement powers available to the BOC.",
    "Provincial securities regulators are encouraged to train FMI oversight staff in advanced quantitative skills to support risk assessment.",
    "Further enhancement in managing liquidity and operational risks will help ensure the robust functioning of FMIs.",
    "Improvements in cyber resiliency continue in line with international guidance, including industry-wide exercises carried out by FMI operators and participants.",
    "Compliance to endpoint security needs to be tightened by self-attestations and audits of FMI participants.",
    "The categorization and reporting of operational incident severity levels could be further coordinated.",
    "Strengthen enforcement powers available to the Bank of Canada.",
    "Provide advanced quantitative training for FMI oversight staff at provincial securities regulators to improve risk assessment.",
    "Enhance liquidity risk management and operational risk controls across FMIs.",
    "Tighten endpoint security compliance through self-attestations and audits of FMI participants.",
    "Coordinate categorization and reporting of operational incident severity levels across authorities and FMI operators.",
    "Publication date: January 24, 2020",
    "Pages: 37",
    "Volume: 2020",
    "Issue: 022",
    "Series: Country Report No. 2020/022",
    "DOI: https://doi.org/10.5089/9781513527222.002",
    "Stock No: 1CANEA2020007",
    "ISBN: 9781513527222",
    "ISSN: 1934-7685",
    "**Executive Summary**"
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