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© 2013 International Monetary Fund

June 2013

IMF Country Report No. 13/183

France: Financial Sector Assessment Program—Detailed Assessment of Observance of CPSS/IOSCO Recommendations for Securities Settlement Systems and for Central Counterparties

This paper was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed in June 2013. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of France or the Executive Board of the IMF.

The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.

Copies of this report are available to the public from

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Financial Sector Assessment Program

France

LCH.Clearnet SA Observance of the CPSS-IOSCO Recommendations for Central Counterparties

Detailed Assessment of Observance

June 2013

International Monetary Fund

Monetary and Financial Systems Department

Contents

  • Glossary

  • I. Executive Summary

  • II. Information and Methodology Used for Assessment

  • III. Institutional and Market Structure

  • IV. Regulatory Structure

  • V. Main Findings

  • VI. Authorities’ Response To The Assessment

  • Tables

  • 1. Key Statistics of LCH.Clearnet SA, 2008–2011

  • 2. Summary of MOUs Between Involved Domestic and Foreign Authorities

  • 3. Collection of Assessment Results of LCH.Clearnet SA by Assessment Category

  • 4. Detailed Assessment of Observance of the LCH.Clearnet SA of the CPSS-IOSCO Recommendations for Central Counterparties

  • 5. Actions to Improve Compliance

  • 6. Further Recommended Actions

  • Figure

  • 1. LCH.Clearnet Group Structure

Glossary

ACP

Autorité du Contrôle Prudentiel

AMF

Autorité des Marchés Financiers

BCP

Business Continuity Plan

BCM

Business Continuity Management Policy

BDF

Banque de France

BDP

Banco de Portugal

CC&G

Cassa di Compensazione e Garanzia

CCP

Central Counterparty

CDS

Credit Default Swap

CEBS

Committee of European Banking Supervisors

CESR

Committee of European Securities Regulators

CFTC

United States Commodities Futures Trading Commission

CMVM

Comissão do Mercado de Valores Mobiliários

CPSS

Committee on Payment and Settlement Systems

CRB

Clearing Rule Book

CRD

Capital requirements directive

CSD

Central securities depository

CVaR

Conditional value at risk

DCM

Direct Clearing Member

DVP

Delivery-versus-payment

DTCC

Depository Trust and Clearing Corporation (DTCC)

EACH

European Association of CCP Clearinghouses

EC

European Commission

EEA

European Economic Area

EEC

European Commodity Clearing

ESCB

European System of Central Banks

EUR

Euro

MFC

Monetary and Financial Code

FSA

Financial Service Authority

FX

Foreign Exchange

GCM

General Clearing Member

GBP

British pound

ICSDs

International Central Securities Depositories

IMF

International Monetary Fund

IOSCO

International Organization of Securities Commission

MOF

Ministry of Finance

MOJ

Ministry of Justice

MOU

Memorandum of Understanding

OTC

Over-the-counter

RBM

Risk-based margining

RCCP

Recommendation for Central Counterparties

ROCH

Recognized Overseas Clearinghouse

RSSS

Recommendation for Securities Settlement Systems

SEC

United States Securities and Exchange Commission

SSS

Securities settlement systems

U.K.

United Kingdom

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France: Financial Sector Assessment Program—Detailed Assessment of Observance of CPSS/IOSCO Recommendations for Securities Settlement Systems and for Central Counterparties
Author:
International Monetary Fund. Monetary and Capital Markets Department