Implementation monitoring of PFMI: Level 3 assessment - Report on the financial risk management and recovery practices of 10 derivatives CCPs

CPMI Papers  |  No 148  | 
16 August 2016

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) continue to closely monitor the implementation of the Principles for financial market infrastructures (PFMI). The PFMI are international standards for payment, clearing and settlement systems, and trade repositories. They are designed to ensure that the infrastructure supporting global financial markets is robust and well placed to withstand financial shocks. 

This report reviews financial risk management and recovery practices in place at a selected set of derivatives CCPs. The findings show that CCPs have made important and meaningful progress in implementing arrangements consistent with the standards. Some gaps and shortcomings have nevertheless been identified, notably in the areas of recovery planning and credit and liquidity risk management. The report also identifies a number of other differences in the outcomes of implementation across CCPs. They may reveal differences in interpretation or approach that could materially affect resilience. 

Looking ahead, CPMI and IOSCO intend to conduct a follow-up targeted review of CCPs' progress in addressing the most important issues identified in the report in 2017.