Considerations for the allocation of non-default losses by financial market infrastructures

Non-default losses of financial market infrastructures (FMIs) have gained attention due to their potential impacts on FMIs and FMI participants, and the lack of a common approach to address them. A key question is, who should absorb these losses? 

To help answer this, we propose four issues to consider for allocating non-default losses: fairness, economic impact, incentives and regulatory compliance.