Recovery of financial market infrastructures
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This revised CPMI-IOSCO report is intended to strengthen recovery arrangements of financial market infrastructures (FMIs), including central counterparties (CCPs) by providing guidance on the principles and key considerations in the PFMI regarding recovery, and building on the 2014 Recovery Report, as consistent with the priorities regarding CCP resilience identified in the joint CCP Workplan of the FSB, the CPMI, IOSCO and the BCBS.
Compared to the 2014 recovery report, the revised guidance provides additional clarifications in four areas:
operationalisation of the recovery plan;
non-default related losses; and
transparency with respect to recovery tools and how they would be applied.
The entirety of the 2014 Recovery Report continues to be fully applicable, including the sections of the report that have not been amended. While the revisions in the report have been motivated by consideration of the recovery arrangements of CCPs specifically, the guidance is relevant for all types of FMIs.
There is no specific assessment methodology although the methodology for the PFMI covers recovery at a high level.