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The review will focus on a subset of requirements under the PFMI that relate to financial risk management by central counterparties including certain practices related to governance, stress-testing, margin, liquidity, collateral, and recovery. This first review will consider outcomes achieved in this area by examining a number of globally- and locally-active CCPs that clear derivative products (both exchange traded and over-the-counter OTC).
Beyond the aim of fostering full and consistent implementation of the PFMI, the first Level 3 Principles assessment is also expected to inform CPMI and IOSCO about the nature and potential causes of variations in approaches or outcomes.
A report presenting the results of this first Level 3 assessment is expected to be published in 2016.