The Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published for public comment a consultative report on financial market infrastructures’ (FMIs) management of general business risks and general business losses.
FMIs, which include payment systems, securities settlement systems, central securities depositories, central counterparties and trade repositories, play an essential role in the global financial system.
The consultative report sets out proposed supplemental guidance for FMIs and relevant authorities on certain principles and key considerations relating to FMIs’ management of general business risks and general business losses, including in the context of recovery and orderly wind-down.
In doing so, the guidance does not aim at introducing new standards but rather at elaborating on the principles which are already established in the Principles for financial market infrastructures (PFMI). The guidance also takes into account findings from the CPMI-IOSCO Level 3 assessment report on general business risks and prior CPMI-IOSCO work on CCP practices to address non-default losses.
General business losses are losses that are neither related to participant default nor separately covered by financial resources under the credit and liquidity risk principles. General business losses may arise from business risks related to the operation of an FMI as a business enterprise.
They may also arise from risks faced by the FMI related to other principles under the PFMI, for example legal risk (Principle 1), custody and investment risks (Principle 16) and operational risk (Principle 17). General business losses may be one-time or recurring losses.
In addition to clarifying the scope of general business risk and the interaction across different Principles, the report provides guidance on: (i) identifying, monitoring and managing general business risks; (ii) determining the minimum amount of liquid net assets funded by equity and (iii) governance and transparency.
Comments on the report should be submitted by 6 February 2026 via email to both the CPMI Secretariat (cpmi@bis.org) and the IOSCO Secretariat (GBR-CP@iosco.org). Comments will be published on the websites of the BIS and IOSCO unless otherwise requested. Commercial or other sensitive information should not be included in the submissions, or may be included, with redactions for publication clearly noted.