CPMI-IOSCO Principles for Financial Market Infrastructures
Central securities depositories and exchange-of-value settlement (Principles 11 and 12) – CPMI-IOSCO Principles for Financial Market Infrastructures

CPMI-IOSCO Principles for Financial Market Infrastructures P12: Principle 12 Exchange-of-value settlement systems

Where an FMI settles transactions involving two linked obligations, such as securities against payment or two currencies, it eliminates principal risk by making final settlement of one obligation conditional on final settlement of the other. This holds whether it settles gross or net and whenever finality occurs, so one leg is never delivered while the other fails.

Maintained by Gerard Blokdyk

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