Principles for Financial Market Infrastructures (PFMI)
The Principles for financial market infrastructures are the international standards for financial market infrastructures, ie payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. Issued by the CPMI and the International Organization of Securities Commissions (IOSCO), the PFMI are part of a set of 12 key standards that the international community considers essential to strengthening and preserving financial stability.
In addition to these standards, the CPMI and IOSCO have published a number of related documents and further guidance on how to implement the standards. These include:
- Recovery of financial market infrastructures: provides guidance to FMIs such as CCPs on how to develop plans to enable them to recover from threats to their viability and financial strength, along with guidance to relevant authorities in carrying out their responsibilities associated with the development and implementation of recovery plans.
- Resilience of central counterparties (CCPs): Further guidance on the PFMI: aims to improve CCPs' resilience by providing guidance on the principles and key considerations in the PFMI regarding financial risk management for CCPs.
- Guidance on cyber resilience for financial market infrastructures: provides guidance on the preparations and measures that FMIs should undertake to enhance their cyber resilience capabilities in order to limit the escalating risks that cyber threats pose to financial stability.
- Clearing of deliverable FX instruments: clarifies the expectations of the CPMI and IOSCO with respect to CCP clearing of deliverable FX instruments and the associated models for effecting their settlement.
- Application of the Principles for financial market infrastructures to central bank FMIs: provides guidance on how the PFMI apply to financial market infrastructures that are owned and operated by central banks.
- Public quantitative disclosure standards for central counterparties: sets out the quantitative data that CCPs should publicly disclose regularly.
- Assessment methodology for the oversight expectations applicable to critical service providers: establishes an assessment methodology and provides guidance for authorities in assessing an FMI's critical service providers against the oversight expectations set out in an annex to the PFMI.
- Principles for financial market infrastructures: disclosure framework and assessment methodology: promotes consistent disclosure of information by FMIs and consistent assessments by international financial institutions and national authorities.