The Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a consultative report proposing supplemental guidance to the Principles for Financial Market Infrastructures (PFMI) on how financial market infrastructures (FMIs) should manage general business risks and general business losses, including in recovery and orderly wind-down scenarios. The proposals are framed as clarifications and elaborations of existing PFMI principles, drawing on CPMI-IOSCO’s Level 3 assessment on general business risks and earlier work on central counterparty practices for non-default losses. The report clarifies the scope of general business risk and how it interacts with other PFMI principles, and provides guidance on identifying, monitoring and managing general business risks, determining the minimum amount of liquid net assets funded by equity, and strengthening governance and transparency. It defines general business losses as losses that are neither related to participant default nor separately covered by financial resources under the credit and liquidity risk principles, noting they can stem from business enterprise risks as well as risks linked to other PFMI areas such as legal risk, custody and investment risks, and operational risk. Comments are requested by 6 February 2026 and will be published on the BIS and IOSCO websites unless respondents ask otherwise.
Bank for International Settlements - Committee on Payments and Market Infrastructures 2025-11-07
Bank for International Settlements Committee on Payments and Market Infrastructures and International Organization of Securities Commissions consult on supplemental PFMI guidance for FMI general business risks and losses
The Bank for International Settlements’ Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions released a report proposing supplemental guidance to the Principles for Financial Market Infrastructures on managing business risks and losses, including recovery and wind-down scenarios. The report clarifies the scope of these risks, provides guidance on governance and transparency, and invites comments by 6 February 2026.