The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions have published final supplemental guidance under the Principles for financial market infrastructures on how all types of financial market infrastructure should manage general business risks and losses, including during recovery and orderly wind-down. Finalizing the guidance proposed in November 2025, the report responds to an implementation assessment that found gaps and material differences in risk management, financial resources, recovery planning and arrangements for raising additional equity. An FMI should identify and mitigate internal and external business risks, estimate the size and timing of potential losses and hold enough liquid net assets funded by equity to implement its recovery and orderly wind-down plans. The minimum must be the greater of the estimated cost of implementing those plans or six months of current operating expenses, with both liquid assets and loss-absorbing equity maintained at or above the required amount at all times. FMIs should also maintain viable plans to raise additional equity, establish escalation and recovery triggers, provide board oversight and disclose enough information for participants to understand how general business losses and related tools could affect them.
Committee on Payments and Market Infrastructures and International Organization of Securities Commissions finalize guidance on FMIs’ management of general business losses
The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions finalized supplemental guidance for all FMIs on managing general business risks and losses. FMIs should hold liquid net assets funded by equity equal to at least the greater of recovery and orderly wind-down costs or six months of current operating expenses. The guidance also addresses risk assessment, equity-raising plans, board oversight and participant disclosures.