PFMI Principle 2 and counterparty approval frameworks

Philip Staddon raised the right question yesterday: most bank counterparty approval frameworks do not have an explicit PFMI Principle 2 governance assessment.

QCCP designation tells you about margin methodology and default procedures.

It does not tell you how the CCP manages conflicts of interest arising from shared ownership with a trading venue. PFMI Principle 2 requires that management.

Approval frameworks should be asking how it works.

#ClearedDerivatives #CounterpartyRisk #PFMI

This first appeared on LinkedIn on 20 May 2026. If you want to comment or discuss, that’s the place.