The International Organization of Securities Commissions (IOSCO) and the Committee on Payments and Market Infrastructure (CPMI) jointly issued a report on the recovery of financial market infrastructures (FMIs) on 15 October 2014.

In the report, the IOSCO and the CPMI provide guidance to FMIs, such as central counterparties, on how to develop plans to enable them to recover from threats to their viability and financial strength that might prevent them from continuing to provide critical services to their participants and the markets they serve. They also provide guidance to relevant authorities on carrying out their responsibilities associated with the development and implementation of recovery plans.

What this means for you

The report supplements the principles for FMIs (PFMI), which are the international standard for FMIs published by IOSCO and the CPMI in April 2012. The report is not intended to create additional standards for FMIs or authorities beyond those set out in the PFMI. Instead, it provides guidance on how FMIs can meet the requirements laid down in the PFMI that they have effective recovery plans.