The European Central Bank (ECB) has selected four key payment systems that are now under the new ECB regulation on oversight requirements for systemically important payment systems (SIPS).
The new regulation, which came into force on 12 August 2014, covers large-value and retail payment systems in the euro area operated by both central banks and private entities.
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ECB stated that the regulation aims at ensuring efficient management of legal, credit, liquidity, operational, general business, custody and other investment risks.
The four key payment systems are TARGET2, operated by the Eurosystem; EURO1 and STEP2-T, operated by EBA CLEARING; and CORE(FR), operated by STET, a joint initiative of six major French banks.
The payment systems were identified according to the combination of at least two of four main criteria, which include the value of payments settled, market share, cross-border relevance and provision of services to other infrastructures. This list will be reviewed by Eurosystem annually based on updated data.
Benoît Coeuré, member of the ECB’s executive board, said: "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 counterparties and trade repositories, and the ongoing regulatory initiative for central securities depositories."
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