Belgium: Financial Sector Assessment Program-Detailed Assessment of Observance-Assessment of the CPSS–IOSCO Principles for Financial Market Infrastructures Euroclear Bank

International Monetary Fund

No 2023/394, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper on Belgium focuses on detailed assessment of observance of the International Organization of Securities Commissions (CPSS-IOSCO) principles for financial market infrastructures. While improvements have been made since the onboarding of the current Chief Information Security Officer, in particular to Euroclear’s cyber posture, there remain critical deficiencies in the management of key operational risk elements, which will require substantial efforts to address. Beyond relying on direct participant disclosure, Euroclear Bank (EB) should develop capacity for increasing the transparency with respect to the business of its direct participants’ clients. EB should also improve the breadth and rigor of its business continuity and default management testing by conducting simulation exercises based on well-defined scenarios. The report suggests that the National Bank of Belgium (NBB)—as the National Resolution Authority—should ensure that the resolution plan for EB is fully operationalized. Action to seize frozen assets at Euroclear because of international sanctions imposed following the Russian invasion of Ukraine could have unintended consequences for EB and the Euroclear Group more broadly.

Keywords: resolution plan; EB's service; cyber posture; EB's ability; assessment of EB; EB's book; access implication; Securities; Credit risk; Operational risk; Collateral; Central securities depositories; Global; Europe (search for similar items in EconPapers)
Pages: 243
Date: 2023-12-08
New Economics Papers: this item is included in nep-eur and nep-ifn
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=542179 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2023/394

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().