CPSSIOSCO

CPSS IOSCO is a joint standards initiative created by the Committee on Payments and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) for the regulation and oversight of financial market infrastructures (FMIs). The CPSS IOSCO Principles, commonly known as the Principles for Financial Market Infrastructures (PFMI), were published in 2012 as a comprehensive framework to reduce systemic risk, strengthen resilience, and promote transparency in FMIs that provide core market services such as payments, clearing and settlement, central counterparties, securities depositories, and trade repositories.

CPSS IOSCO sets 24 principles that cover legal foundations, governance and risk management, settlement finality and operational risk, credit and liquidity risk, collateral, liquidity management, access and participation, and disclosure and cooperation among authorities. The PFMI seek to ensure FMIs have robust governance structures, well-defined risk controls, and reliable risk management to support safe and efficient payments and clearing across borders.

The initiative is descriptive rather than prescriptive for national legislation; jurisdictions typically map their regulatory and supervisory frameworks to the PFMI, enacting laws and supervisory practices that align with the principles. The CPSS IOSCO standards have been widely adopted by central banks, supervisors, and market participants and have influenced subsequent reforms in financial market infrastructure regulation. The CPSS IOSCO continues to support monitoring, updates, and guidance through the CPMI and IOSCO, with ongoing work to reflect changes in market structure, technology, and cross-border operational risks.