Principles for Financial Market Infrastructures

On 8th May 2018, CPMI-IOSCO released anonymised updates on the three critical risk areas where central clearing houses are scrambling to meet the business and regulatory demands as set forth in the 2014 Principles for Financial Market Infrastructures (‘PFMIs’). These three are recovery, coverage of financial resources, and liquidity stress testing.

The time, money and effort diverted to re-regulation of the financial services industry since 2008 has dismayed bankers everywhere. But it has caused a special brand of irritation on a continent which made no contribution to the financial crisis, and whose main priority is not to tame excesses but to build capital markets attractive to foreign portfolio investors.