Ordinance on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading

(Art. 8 para. 3 FMIA)

¹With re­gard to risk man­age­ment, the fin­an­cial mar­ket in­fra­struc­ture must have a concept for the in­teg­rated iden­ti­fic­a­tion, meas­ure­ment, man­age-ment and mon­it­or­ing of risks, par­tic­u­larly with re­spect to:

a.

leg­al risks;

b.

cred­it and li­quid­ity risks;

c.

mar­ket risks;

d.

op­er­a­tion­al risks;

e.

set­tle­ment risks;

f.

repu­ta­tion­al risks;

g.

gen­er­al busi­ness risks.

²It must have in­stru­ments in place and cre­ate in­cent­ives in or­der to en­sure that par­ti­cipants can con­tinu­ously man­age and lim­it the risks arising for them­selves or for the fin­an­cial mar­ket in­fra­struc­ture.

³In­so­far as the fin­an­cial mar­ket in­fra­struc­ture has in­dir­ect par­ti­cipants and these are iden­ti­fi­able, it must also identi­fy, meas­ure, con­trol and mon­it­or the risks posed to the fin­an­cial mar­ket in­fra­struc­ture by these parties.

⁴The in­tern­al doc­u­ment­a­tion of the fin­an­cial mar­ket in­fra­struc­ture on passing a res­ol­u­tion and the mon­it­or­ing of trans­ac­tions as­so­ci­ated with the risks should be de­signed in such a way that al­lows the audit firm to make a re­li­able as­sess­ment with re­spect to the busi­ness activ­ity.

⁵The fin­an­cial mar­ket in­fra­struc­ture shall en­sure an ef­fect­ive in­tern­al con­trol sys­tem which, among oth­er things, guar­an­tees com­pli­ance with leg­al and in­tern­al com­pany rules and reg­u­la­tions (com­pli­ance func­tion).

⁶The in­tern­al audit func­tion must sub­mit a re­port to the body with re­spons­ib­il­ity for gov­ernance, su­per­vi­sion and con­trol or to one of its com­mit­tees. It must have suf­fi­cient re­sources as well as un­res­tric­ted audit rights.