This report sets out guidance for financial market infrastructures (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 FMI’s recovery and orderly wind-down.
General business losses under the CPMI-IOSCO Principles for financial market infrastructures (PFMI) refer to the losses that are neither related to an FMI’s participant default nor separately covered by financial resources under the principles related to credit and liquidity risks. General business losses may arise from business risks related to the administration and operation of an FMI as a business enterprise.
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 in managing general business risks.
The guidance does not aim to introduce additional standards. It provides clarity regarding an acceptable way, but not necessarily the only way, of observing the PFMI. The guidance also takes into account the findings from the CPMI-IOSCO Level 3 assessment report on the implementation of principle 15 (General business risk) and prior work on CCP practices to address non-default losses. Each FMI, in conjunction with the authorities responsible for its regulation, supervision and oversight, should carefully consider this guidance when developing its approach to observing the PFMI.
A consultative version of the report was published in November 2025. A range of views was expressed by respondents to the consultation. CPMI and IOSCO appreciate the thorough responses and engagement received from respondents.
Consultation responses can be found here.