Principles for Financial Market Infrastructure:
Information Disclosure
TFX has released the qualitative information and the quantitative information concerning its compliance with "Principles for Financial Market Infrastructures ("PFMIs" April 2012)" in accordance with "Principles for Financial Market Infrastructure: Disclosure Framework and Assessment Methodology (December 2012)" and "Public quantitative disclosure standards for central counterparties (February 2015)", which are issued by CPSS-IOSCO (∗) respectively.
PFMIs are new international standards that require Financial Market Infrastructure to adhere to its twenty-four (24) principles, such as "General organization", "Credit and liquidity risk management", "Default management", "General business and operational risk management", "Access", "Efficiency", and "Transparency".
Following the publication of PFMIs, the Financial Service Agency of Japan released "Comprehensive Guidelines for Supervision of Financial Market Infrastructures - Clearing Organizations, Fund Clearing Organizations, Book-entry Transfer Institutions, and Trade Repositories ("JFSA's Guidelines")" in December 2013.
Given the development in these new international regulations, TFX recognizes the importance of maintaining credibility as a Clearing organization by accomplishing properly its Clearing Business under an appropriate risk management framework and establishes a robust governance structure and comprehensive risk management framework conforming to the PFMIs and JFSA's Guidelines.
TFX submitted European Securities and Markets Authority ("ESMA") an application pursuant to Article 25-1 of the European Market Infrastructure Regulation ("EMIR") and has received the Third-Country CCP ("TCCCP") recognition from ESMA on April 27, 2015.
∗ CPSS (Committee on Payment and Settlement Systems) and IOSCO (International Organization of Securities Commissions) are international organization composed of central banks and securities market regulators respectively. CPSS changed its name to CPMI (Committee on Payment and market Infrastructures) in September 2014.
- Principles for Financial Market Infrastructures
- Principles for Financial Market Infrastructures: Disclosure Framework and Assessment Methodology
- Public quantitative disclosure standards for central counterparties
Financial Market Infrastructure
1. Qualitative Disclosure
In July 2015, TFX started its qualitative information disclosure describing its compliance with the PFMI. This has been updated in August 2017, August 2019, August 2021 and August 2023. Subsequent updates are scheduled at least once every two years moving forward.
Disclosure DocumentsPDF :1.95 MB
2. Quantitative Disclosure
TFX started its quantitative data disclosure to be compliant with the PFMI since the 3rd quarter of 2015. This is updated quarterly from that time on.
(1) Subjects for Disclosure
TFX provides its quantitative information disclosure regarding PFMI Principle 4-7, 13-19 and 23 principle by principle.
- o There are no quantitative disclosure requirements relating to PFMI Principles 1-3, 8-11, 21,22 and 24 in accordance with the Public quantitative disclosure standards for central counterparties.
- o As Principle 12 (Exchange-of- value Settlement systems), and Principle 20 (FMI Link) do not apply to TFX's business, these principles are not covered in this disclosure.
(2) Disclosure Formats
TFX prepares two types of Disclosure Formats (PDF formats, CSV formats) in accordance with CCP12 template.
The contents of two Disclosure Formats are same, however, "PDF formats" are designed with easy-to-understand screen configuration, and the disclosure descriptions are modified more suitable expression, reflecting the characteristics of our business and business framework, compared to "CSV formats".
Regarding the amended disclosure descriptions, TFX provides detailed explanations of its amendments on "note" of both Disclosure Formats.
