CPMI And IOSCO Update Report On CCP Implementation Of PFMI

The Committee on Payments and Market Infrastructures ("CPMI") and IOSCO updated a study on ten derivatives CCPs attempts to implement the Principles for Financial Market Infrastructures ("PFMI"). The update reviews the progress made by central counterparties ("CCPs") to address areas of financial risk management and recovery practices (as identified previously).

In the report, CPMI and IOSCO found that participating CCPs demonstrated progress toward reaching standards set in PFMI. The report noted that other CCPs have failed to implement the "full set of recovery rules and procedures" recommended. Most of those CCPs have demonstrated "gaps and shortcomings" in credit and liquidity risk management. Some have not yet established procedures that will maintain the required level of financial resources on an ongoing basis.