CPMI and International Organization of Securities Commissions identify serious shortcomings in FMIs’ general business risk management and consult on supplemental PFMI guidance

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a Level 3 implementation monitoring report and a consultative report on how financial market infrastructures (FMIs) manage general business risks and general business losses. The assessment identifies a number of serious issues of concern, including around the liquid net assets funded by equity that FMIs hold to cover potential losses, and the consultation proposes supplemental guidance to the Principles for financial market infrastructures (PFMI). Based on a sample of 34 FMIs and focused on PFMI Principle 15, the assessment highlights concerns with how FMIs determine the amount of liquid net assets funded by equity needed to cover potential losses from different sources of general business risk, as well as shortcomings in recovery and orderly wind-down planning and in plans for raising additional equity. The proposed guidance is directed at FMIs and relevant authorities and addresses the management of general business risks and general business losses, including in the context of recovery and orderly wind-down. Comments on the consultative report are due by 6 February 2026 and will be published on the BIS and IOSCO websites unless otherwise requested; respondents are asked not to include commercially sensitive information, or to submit it with clearly identified redactions for publication.