Upon completion of this program, participants will be able to:

• Analyze the structure and mandate of the **CPMI-IOSCO Principles for FMIs (PFMIs)** and their scope of application.
• Evaluate an FMI's compliance with PFMIs across credit, liquidity, settlement, and operational risk.
• Understand the legal requirements for finality, irrevocability, and the enforceability of close-out netting.
• Describe the regulatory frameworks for FMI governance, transparency, and information disclosure.
• Assess the specific risks and regulatory requirements for different FMI types (e.g., CCPs, CSDs).
• Examine the principles and requirements for FMI **recovery and resolution planning (RRP)**.
• Understand the coordination and legal challenges of cross-border and interlinked FMI regulation.
• Formulate policy and regulatory amendments to address emerging FMI risks (e.g., cyber, DLT).

• Central Bank FMI Oversight and Regulatory Staff
• Legal and Compliance Officers for FMIs and Central Banks
• FMI Risk Management and Internal Audit Professionals
• Government Policy Makers on Financial Regulation
• Senior Management of Clearing Houses and Depositories
• International Financial Institution Regulatory Experts

FMI RRP case studies and simulation, PFMIs compliance audit group project, Legal analysis of netting and finality legislation, Policy debates on CCP loss allocation, Role-playing regulatory examination of FMI governance, Structured discussions on DLT regulation.

Unit 1: Foundations and the PFMIs Framework

• The distinction between Payment Systems, CCPs, CSDs, and Trade Repositories.
• Criteria for determining systemic importance and regulatory designation.
• The history and motivation for the development of international FMI standards.
• The role of the Financial Stability Board (FSB) in FMI policy coordination.

• Overview of the 24 principles and the responsibilities for authorities.
• In-depth focus on Principle 1 (Legal basis) and Principle 2 (Governance).
• The framework for risk management: PFMIs 3-17 (Credit, Liquidity, Settlement, Custody, etc.).
• PFMIs for efficiency, transparency, and broad access (PFMIs 18-24).

Unit 2: Risk-Specific Regulatory Requirements

• Regulatory expectations for margin models, collateral eligibility, and haircuts (PFMI 5).
• Liquidity risk management requirements for CCPs, including the coverage of liquidity shortfalls (PFMI 7).
• Regulatory treatment of settlement risk in DvP and PvP systems (PFMIs 11 and 12).
• Stress testing requirements for credit and liquidity resources.

• Regulatory mandate for operational risk management and business continuity (PFMI 17).
• Requirements for cyber resilience and secure recovery for critical systems.
• The legal requirements for ensuring finality and irrevocability of transfers (PFMI 8).
• Regulatory stance on the use of new technologies (e.g., DLT) in FMI operations.

Unit 3: Governance, Transparency, and Resolution

• Regulatory expectations for the FMI's board composition, skill, and independence.
• The requirement for clear and comprehensive rules, procedures, and contracts.
• Regulatory mandate for transparency and public disclosure of rules and risk data (PFMI 23).
• Management of conflicts of interest and participant eligibility.

• Regulatory mandate for the FMI to develop a credible **Recovery Plan**.
• The role and powers of the Resolution Authority in FMI failure.
• Legal and policy challenges of cross-border resolution and resource sharing.
• Assessing the adequacy of the FMI's loss allocation scheme.

Unit 4: Cross-Border and Emerging Issues

• Regulatory challenges of interlinked FMIs (e.g., between a CCP and an SSS).
• The need for cooperative oversight and information-sharing agreements across jurisdictions.
• Regulatory approach to new global or multilateral FMIs.
• Regulatory implications of the shift to global messaging standards (ISO 20022).