PRESS RELEASE

EURO1 Complies with CPSS Core Principles

14 November 2011

The European Central Bank (ECB) published today an assessment of the euro system of EBA CLEARING Company (EURO1) against the core principles for systemically important payment systems, as defined by the Committee on Payment and Settlement Systems (CPSS). The report, entitled EURO1 Oversight Assessment Report, was produced by the central banks of the euro area and was coordinated by the ECB, as part of their joint oversight mandate.

The report outlines the overall results of the assessment exercise and concludes that the euro system of EBA CLEARING Company (EURO1) complies with CPSS Core Principles I to IX and, due to the absence of a dedicated Risk Management function within the company, broadly complies with Core Principle X (on governance). In addition, the report makes recommendations to the operator for improvements in some areas, highlighting that none of the aspects to improve poses a significant risk to the effective functioning of EURO1.

Background information

CPSS, a committee formed by representatives of G10 central banks, set out in January 2001 ten Core Principles as authoritative standards for the design and operation of systemically important payment systems in all countries. In January 2001 the Governing Council of the ECB adopted the Core Principles as minimum standards for its oversight of large-value payment systems (such as EURO1) operating in euro. A new set of principles for financial market infrastructures (FMI) are being developed by CPSS and the Technical Committee of the International Organization of Securities Commissions (IOSCO). The new principles may replace the CPSS core principles as the applicable oversight standards for the oversight of FMIs, such as the EURO1 system.

The EURO1 oversight assessment report can be accessed and downloaded from the ECB’s website.

Media contacts