The CPSS-IOSCO Principles for Financial Market Infrastructures (PFMIs) are a set of principles to manage market risk that were published in 2012 by the Committee on Payment and Settlement Systems of the Bank for International Settlements and the Technical Committee of the International Organization of Securities Commissions.
This is important to avoid the uncertainty that would result if there was the possibility that the courts might void or hold-up transactions.
[1] Central counterparties must manage their credit exposure to market participants by ensuring they have an effective margin system.
[1] Liabilities incurred must be settled with finality, at the very least at the end of the day where value is credited, but ideally in real-time.
[1] Risks relating to the storage and delivery of physical securities and commodities must be managed.
[1] The market operator must manage its own business risks to ensure it can continue as a going concern.
[1] Criteria for participating in the market must be objective and transparent, ensuring fair and open access.
[1] A trade repository must disclose relevant market information to the public and government authorities that is timely and accurate.