Bank for International Settlements' Committee on Payments and Market Infrastructures and IOSCO identify serious concerns in FMI general business risk management and consult on supplemental PFMI guidance

The BIS Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published an implementation monitoring report on financial market infrastructures’ (FMIs) management of general business risks, alongside a consultative report proposing supplemental guidance to the Principles for financial market infrastructures (PFMI). The assessment finds serious issues of concern in how FMIs manage general business risks and in the liquid net assets funded by equity they hold to cover potential losses. The Level 3 assessment reviews implementation of PFMI Principle 15 (general business risk) across a sample of 34 FMIs. Areas of concern include how FMIs determine the amount of liquid net assets funded by equity to cover potential losses from different risk sources, recovery and orderly wind-down planning, and plans for raising additional equity. The consultative report proposes guidance for FMIs and relevant authorities on managing general business risks and general business losses, including in the context of recovery and orderly wind-down, and is intended to address the assessment findings. Comments on the consultative report are due by 6 February 2026, with submissions to be published on the BIS and IOSCO websites unless otherwise requested.