BIS payments and settlements committee expands mandate
01 September 2014 | 1543 views | 0
Source: Bank for International Settlements
At their meeting in June 2014, the central bank Governors of the Global Economy Meeting (GEM) endorsed a new mandate and charter for the Committee on Payment and Settlement Systems (CPSS).
The GEM also decided to rename the CPSS as the Committee on Payments and Market Infrastructures (CPMI).
These changes, which become effective today, align the name and mandate of the Committee more closely with its actual activities. They do not affect the way the Committee operates, its membership and responsibilities.
The CPMI's primary task is to promote the safety and efficiency of payment, clearing, settlement and related arrangements, thereby supporting financial stability and the wider economy. Comprising senior officials from 25 central banks, the Committee monitors and analyses developments in these arrangements, both within and across jurisdictions. It also serves as a forum for central bank cooperation in related oversight, policy and operational matters, including the provision of central bank services. The CPMI is a global standard setter that aims at strengthening regulation, policy and practices in this area worldwide.
Commenting on the new charter, the CPMI's Chair Benoît Cœuré said, "The Committee on Payments and Market Infrastructure will continue to be instrumental in deepening our understanding of payment, clearing and settlement arrangements, promoting their safety and efficiency and ensuring a level playing field globally." See below for full statement by the Chair.
The Global Economy Meeting (GEM) is the supervisory body of the CPMI.
The payment, settlement and clearing arrangements covered by the CPMI's mandate include financial market infrastructures and other payment, clearing, settlement and reporting arrangements and activities, both within and across jurisdictions (encompassing systems and activities involving large-value and retail payment, foreign exchange settlement, securities and derivatives clearing and settlement, multilateral netting or collateral management) as well as retail payment instruments or schemes. This also covers the services provided by central banks and others to these arrangements.
The ce The central banks represented on the CPMI are the Reserve Bank of Australia, National Bank of Belgium, Central Bank of Brazil, Bank of Canada, People's Bank of China, European Central Bank, Bank of France, Deutsche Bundesbank, Hong Kong Monetary Authority, Reserve Bank of India, Bank of Italy, Bank of Japan, Bank of Korea, Bank of Mexico, Netherlands Bank, Monetary Authority of Singapore, Sveriges Riksbank, Swiss National Bank, Central Bank of the Russian Federation, Saudi Arabian Monetary Agency, South African Reserve Bank, Central Bank of the Republic of Turkey, Bank of England, Board of Governors of the Federal Reserve System, Federal Reserve Bank of New York.
More information about the CPMI, and all its publications, can be found on the BIS website.
Statement by CPMI Chair Benoit Cœuré
Today, the Committee on Payment and Settlement Systems is changing its name to Committee on Payments and Market Infrastructures. However, it will not change its central role in shaping the payments, clearing and settlement infrastructure at a global level.
The history of the Committee dates back to the late 1970s, when in the wake of the Bankhaus Herstatt failure in 1974, central banks started cooperation in a number of fields, including payment and settlement systems. The current Committee was established by the G10 Governors as a permanent body in 1990, to carry on work previously done by various ad hoc G10 groups.
While its basic role has not changed over the years, the Committee has gradually expanded its field of interest, in parallel with the growing complexity and interdependencies of financial markets. It has strengthened its role as a global standard setter for the different types of financial market infrastructures and continued its policy and analytical work on an ever wider range of payment, clearing and settlement issues, including reports on oversight, retail payment systems and instruments, foreign exchange settlement risk and the interdependencies of payment and settlement systems.
Jointly with the International Organization of Securities Commissions (IOSCO), the Committee has issued the Principles for Financial Market Infrastructures, new and more demanding international standards that are designed to ensure that the infrastructure supporting global financial markets is more robust and thus well placed to withstand financial shocks, and it is now monitoring their implementation.
Today, after two rounds of enlargement in 1997-98 and 2009, the Committee includes representatives from 25 central banks and is recognised as a global standard-setting body. It continues to be hosted by the BIS in Basel and reports to the Global Economy Meeting (GEM) Governors.
The new name, charter and mandate will serve to reflect the Committee's full range of responsibilities and tasks and to provide a clear structure for the conduct of its activities.
It is difficult to predict what lies ahead, but it will be essential that the Committee remains alert to any future developments that may affect the safety and efficiency of the global financial market infrastructure. It would be highly damaging to the global economy if markets were to cease to function effectively because of concerns about the risks of post-trade infrastructure. Hence the importance of regulation and oversight of payments, clearing and settlement arrangements taking the most rigorous approach possible to risk reduction and management.
It is also important that regulation is implemented in a consistent way across jurisdictions and across markets, given growing interdependencies. Close coordination with other standard setting bodies will be central to achieving these aims.
I am confident that in the years to come, the Committee on Payments and Market Infrastructure will continue to be instrumental in deepening our understanding of payment, clearing and settlement arrangements, promoting their safety and efficiency and ensuring a level playing field globally.