Global standard setters are issuing updated guidance for financial market infrastructures as authorities sharpen expectations around business risk management and loss absorption. The final report addresses liquid net assets funded by equity, as well as governance and transparency, in the context of recovery and orderly wind-down planning.
Highlights
- CPMI and IOSCO published final guidance directing financial market infrastructures (FMIs) on risk controls, business loss management, and governance expectations.
- The report specifies how FMIs must identify, monitor, and manage general business risks and set minimum liquid net assets funded by equity to cover potential losses.
- Guidance incorporates feedback from the November 2025 consultation and PFMI Principle 15 assessment, aiming to enhance resilience among core market infrastructure operators.
Guidance covers risk controls and loss capacity
As reported by Bank for International Settlements, the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions have published a final report on how financial market infrastructures should manage general business risks and general business losses.The report provides guidance for FMIs and relevant authorities on identifying, monitoring and managing general business risks. It also sets out how FMIs should determine the minimum amount of liquid net assets funded by equity to hold against potential general business losses, and outlines expectations for governance and transparency in this area.
Framework builds on 2025 consultation findings
The final report builds on a consultative report on general business losses published in November 2025. It also reflects findings from the Level 3 assessment report on the implementation of PFMI Principle 15, which identified issues related to FMIs' management of general business risks and the liquid net assets funded by equity held to cover potential losses.CPMI and IOSCO say they have taken consultation responses into account in finalising the guidance. The bodies also say they appreciate the responses and engagement received from respondents, with the framework intended to support stronger resilience across core market infrastructure operators.
Our earlier coverage of Malaysia’s post-1MDB accountability debate examined how governance failures can cascade when controls, audits and checks and balances break down. We highlighted calls for stronger board responsibility, safer whistleblowing protections, and a more proactive role for internal auditors in identifying emerging risks before losses occur.
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