Business continuity for market infrastructures
What is business continuity?
It is a state of uninterrupted operation of a business. The term "business continuity" refers to all of the organisational, technical and staffing measures that are employed to ensure the continuation of
- all core business activities in the immediate aftermath of a crisis and
- gradually guarantee the continued operation of business activities as a whole in the event of sustained and severe disruptions.
Why business continuity is important
Achieving financial stability in Europe depends inter alia on the smooth functioning of the EU payment and security settlement systems. As financial markets are highly interconnected across national borders, incidents occurring in one market infrastructure might have a domino effect and easily spread into other systems.
Sharing information as key to resilience
Business continuity preparedness is crucial among all financial market participants across Europe due to the existence of common infrastructure and the high degree of interdependencies between them.
The European System of Central Banks (ESCB) promotes information sharing in this field for the following reasons:
- An exchange of best practices in implementing existing national, European and global standards can contribute to further increasing resilience on a European level, by increasing the level of reciprocal information and understanding;
- It facilitates the provision of coherent, up-to-date and easily accessible information on euro area or international BC standards or initiatives, links to relevant information maintained by the other EU central banks on national BC requirements and market arrangements in this field.
- Business continuity oversight expectations for systemically important payment systems (SIPS)
- Oversight standards for euro retail payment systems
- Standards for the use of the EU Securities Settlement systems in ESCB credit operations
- Electronic Money System Security Objectives (EMSSO) report
- Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments (MiFID)
- EPCIP – European Programme for Critical Infrastructure Protection
- Risk Assessment and Business Continuity Management
- Australian Prudential Regulation Authority (APRA) Business Continuity Management Standard
- Core Principles for Systemically Important Payment Systems (CPSS, January 2001)
- Recommendations for securities settlement systems (CPSS-IOSCO, November 2001)
- Recommendations for Central Counterparties (CPSS-IOSCO, November 2004)
- High Level Principles for Business Continuity (Joint Forum Business Continuity Working Group, August 2006)
- Basel Committee on Banking Supervision announces steps to strengthen the resilience of the banking system (16 April 2008)
- The interdependencies of payment and settlement systems (CPSS Publications No 84, June 2008)
- Business Continuity Planning at the Bank of Japan
- Business Continuity Planning at Financial Institutions
- Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System
- Best practises to assure telecommunications continuity for FIs and the payment and settlement utilities
- Federal Reserve Financial Services
- The Securities Industry Association (SIA)
- Critical Infrastructure Guide
- The Financial and Banking Information Infrastructure Committee (FBIIC)
- Financial Services Sector Coordination Council for Critical Infrastructure Protection and Homeland Security (FSSCC)
- Critical infrastructure Warning Information Network (CWIN)