Global standard-setting bodies publish final report on guidance for FMIs on general business risks and general business losses
AI Analysis
CPMI and IOSCO published final supplemental guidance on 14 October 2026 for financial market infrastructures (FMIs) managing general business risks and general business losses. It matters because the guidance responds to implementation weaknesses identified across 34 FMIs in 27 jurisdictions, particularly inconsistent sizing of liquid net assets funded by equity (LNAFE), recovery and orderly wind-down planning, and arrangements for raising additional equity.
Key dates
- 2026-10-14
- CPMI and IOSCO published the final report on FMIs' management of general business risks and general business losses.
- 2026-02-06
- The consultation period for the predecessor November 2025 report closed.
Suggested considerations
- FMIs should consider mapping their existing general business risk frameworks, loss taxonomies and financial resources against the final guidance and PFMI Principles 1, 15, 16 and 17.
- FMIs should reassess whether LNAFE is sufficient not only to meet the six-month operating-expense floor but also to cover credible one-time and recurring loss scenarios and the period needed for recovery or orderly wind-down.
- FMIs should review business continuity, recovery and orderly wind-down plans for explicit treatment of general business losses, including escalation and options for raising additional equity.
- FMIs should consider documenting the assumptions, scenarios, methodologies and governance approvals used to size LNAFE and distinguish general business losses from participant-default losses and other PFMI resources.
- FMIs should consider enhancing public and authority-facing disclosures on general business risk exposures, LNAFE, risk-management assumptions, governance responsibilities and available recovery or wind-down resources.
- Authorities should consider incorporating the supplemental guidance into supervisory assessments and reviewing whether local FMI rules, recovery plans and disclosure expectations remain aligned with the final report.
- FMI operators and participants should monitor national implementation because CPMI-IOSCO guidance is not directly binding and practical obligations will depend on the relevant jurisdiction's legal and supervisory framework.
What changed
The final report elaborates the existing PFMI requirements, especially Principle 15, rather than creating a new standalone binding standard. It provides guidance on identifying, monitoring and managing general business risks; determining the minimum LNAFE required to cover potential general business losses and support continued operations, recovery or orderly wind-down; and strengthening governance and transparency. General business losses are losses neither related to participant default nor separately covered by credit and liquidity-risk resources, including losses associated with business operations and, where not otherwise covered, legal, custody and investment, and operational risks. The existing PFMI quantitative floor remains at least six months of current operating expenses in LNAF
Compliance impact
The impact is material for FMIs because supervisors are likely to use the guidance to assess existing PFMI Principle 15 implementation, particularly LNAFE calibration, risk scenarios, recovery and orderly wind-down planning, governance and transparency. It is not a directly binding rule or a new capital requirement, but deficiencies may lead to supervisory findings, remediation expectations and pr
Who is affected
Related regulations
References
AI-generated analysis. May contain errors or omissions — verify with the original BIS source before acting. Full disclaimer.
What the BIS said
The Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) today published a final report on financial market infrastructures’ (FMIs) management of general business risks and general business losses.
Published by BIS . Read the full notice at the source for the authoritative text.