What Is the Role of the Bank for International Settlements (BIS) in Setting Cross-Margining Standards?

The BIS, through its Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO), sets global standards for financial market infrastructures, including CCPs. The Principles for Financial Market Infrastructures (PFMI) provide the framework for risk management, which indirectly influences cross-margining by mandating robust collateral, liquidity, and default management standards.