The Principles for Financial Market Infrastructures (PFMI) published in 2012 by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) set the international standards for Financial Market Infrastructures, which according to the international consensus include Payment Systems, Central Counterparties, Securities Clearing and Settlement Houses, Securities Custodians and Depositories, and Transaction Repositories.

Among other aspects, the Principles for Financial Market Infrastructures incorporate standards relating to capital requirements, settlement systems, criteria for credit and liquidity risk management, portability of positions in financial instruments and segregation of guarantees. Moreover, these principles also encourage participation at different levels (indirect participants), in order to avoid market concentration in a few participants that might thus acquire systemic importance. Finally, market transparency is promoted through the obligation to report transactions to entities dubbed transaction repositories.

There are 24 Principles for Financial Market Infrastructures, of which 18 are applicable to Systemically Important Payment Systems. These principles are geared towards effective risk management and the furtherance of efficiency and transparency. In addition, 5 responsibilities are established for the authorities in charge of the regulation, supervision and surveillance of such infrastructures. The implementation of these Principles contributes to the robustness of Financial Market Infrastructures, whose relevance became apparent during the global financial crisis that began in 2008, where markets equipped with such Infrastructures were more able to contain its adverse effects.

• PFMI – Bank of International Settlements (BIS)
• Financial Policy - Prudential Regulations - Financial Market Infrastructures

The regulations of the Central Bank of Chile that acknowledge and require the designated Payment Systems to comply with the Principles for Financial Market Infrastructures are as follows:

• Chapter III. H, Payment Systems. Compendium of Financial Regulations

Specifically, this new Chapter adheres to the Principles for Financial Market Infrastructures, making them expressly enforceable for the Real-Time Gross Settlement System managed by the Bank (Chapter III.H.4 of the Compendium of Financial Regulations) and for the Clearing House for Large Value Payments in National Currency (Chapter III.H.5 of the Compendium of Financial Regulations) managed by the Operating Company of the Clearing House for Large Value Payments S.A. (Combanc S.A.).

Status of PFMI Implementation for Financial Market Infrastructures in Chile
Once the Principles for Financial Market Infrastructures were defined, from 2013 onwards, CPMI/ IOSCO began a process of annual monitoring of their implementation, which, for the time being, has remained limited to the availability of an appropriate regulatory and legal framework.

EU: Rating is the same as in European Union.

Source: Current status of Level 1 assessments (as of January 2021), BIS.

https://www.bis.org/cpmi/level1_status_report.htm

• Monitoring Implementation of the PFMI – Bank of International Settlements (BIS)

Low value payment systems, also known as retail payment systems, are used to make payments and transfer funds between individuals and/or companies, and characteristically process a large number of transactions of lower relative individual value, usually linked to the purchase and sale of goods and services.

In Chile, payments of this kind are made through a variety of instruments such as cash, checks, credit and debit cards, and electronic transfers. Checks and ATM transactions settle each participant’s net balances in the Real-Time Gross Settlement system every day, which are determined in specialized clearing houses.

• Financial Policy - Prudential Regulations - Financial Innovation and Means of Payment

The regulations of the Central Bank of Chile applicable to Issuers and Operators of Payment Cards are as follows:

• Chapter III.H.1 Clearing House for Checks and Other Documents in Chilean Currency
• Chapter III.H.3 Clearing House for Operations Carried Out through Chilean ATMs
• Chapter III.J.1, Payment Card Issuers, Compendium of Financial Regulations
• Chapter III.J.1.1, Credit Card Issuers, Compendium of Financial Regulations
• Chapter III.J.1.2, Debit Card Issuers, Compendium of Financial Regulations
• Chapter III.J.1.3, Issuers of Cards with Provision of Funds, Compendium of Financial Regulations
• Chapter III.J.2, Payment Card Operators, Compendium of Financial Regulations