The new ECB regulation, which came into force earlier this month, covers large-value and retail payment systems in the euro area operated by both central banks and private entities. The aim is to promote the smooth operation of safe and efficient payment systems through strong management of legal, credit, liquidity, operational, general business, custody, and investment risks. In identifying systemically important payment systems, the ECB looked at the value of payments settled, market share, cross-border relevance and provision of services to other infrastructures. If a system is deemed to meet at least two of these four criteria it makes the list.
Target2 – operated by the Eurosystem.
Euro1 and Step2-T – both run by EBA Clearing.
Core(Fr) – French bank joint initiative, have been identified.
The list will be reviewed annually based on updated data. With this regulation, Europe is consolidating international practice for the oversight of Sips into EU law, as with past efforts for other financial market infrastructures, such as the European Market Infrastructure Regulation for the supervision of central counter parties and trade repositories and the ongoing regulatory initiative for central securities depositories.
