CPMI-IOSCO report / VP Securities

CPMI-IOSCO report

As CSDs are considered to be systemically important for a well-functioning financial system, they are subject to oversight by central banks and financial supervisory authorities. The overseers for VP SECURITIES are Danmarks Nationalbank and the Danish Financial Supervisory Authority.

VP is asset on the basis of 24 principles from CPMI-IOSCO (the global cooperation between central banks and the International Organization of Securities Commissions), which together comprise the international standard for CSDs.

The 24 principles can be divided into 10 main categories:

  • Overall organisation 
  • Credit and liquidity risk
  • Settlement
  • CSDs and principal risk
  • Handling of defaulting participants
  • General business risks
  • Operational risk
  • Access
  • Effectiveness
  • Transparency

Report - February 2016

In the report from February 2016 the Danish FSA and Danmarks Nationalbank have found 18 of the 24 principles, to be relevant for VP. 14 have received the highest score, and 4 the second-highest score. For the 4 principles with the second-highest score, the Danish FSA and Danmarks Nationalbank have made a number of recommendations. During 2016 VP will work on implementing these recommendations.

Besides the Danish FSA and Danmarks Nationalbank's overall conclusion, which is published on Danmarks Nationalbank's website, VP has prepared a report in which the individual principles are reviewed in detail. This report first presents an overall review of VP.

Read the CPMI-IOSCO report here.