Eurosystem oversight of payment systems primarily distinguishes between systemically important payment systems (SIPS) and non-systemically important payment systems (non-SIPS).
This distinction is based on criteria related to size, market share, cross-border activity and the provision of settlement services to other financial market infrastructures.
The classification of euro area payment systems is reviewed annually.
The ECB Regulation on oversight requirements for systemically important payment systems (SIPS Regulation) covers both large-value and retail payment systems of systemic importance, whether operated by Eurosystem national central banks or private entities.
It aims to ensure the efficient management of legal, credit, liquidity, operational, general business, custody, investment and other risks, as well as sound governance arrangements, objective and open access, and the efficiency and effectiveness of SIPS.
Under the SIPS Regulation, the ECB is responsible for overseeing TARGET2, EURO1 and STEP2-T.
Banque de France oversees CORE(FR), a SIPS with a clear national anchor (i.e. legally incorporated in a jurisdiction or serving that particular national market).
The US Federal Reserve System has accepted primary oversight responsibility for the Continuous Linked Settlement (CLS) system, leading a cooperative oversight framework in which the ECB participates, together with the G10 national central banks. Within the Eurosystem, the ECB has primary responsibility for the settlement of euro-denominated payments by CLS, in close cooperation with other Eurosystem central banks.
Non-systemically important payment systems (non-SIPS) are generally used for the bulk of low-value payments to and from individuals and between individuals and companies and public authorities.
They contribute to both the stability and efficiency of the financial system as a whole and citizens’ confidence in the euro.
Non-SIPS consist of non-systemically important large-value payment systems (LVPS), prominently important retail payment systems (PIRPS) and other retail payment systems (ORPS).
Non-SIPS are subject to a subset of the CPSS-IOSCO Principles for financial market infrastructures (PFMIs), as defined in the revised Oversight framework for retail payment systems (OFRPS).
Where relevant, they also have to comply with some of the Oversight expectations for links between retail payment systems (OELRPS). The OELRPS focus on ensuring the safety and efficiency of the operation of links between retail payment systems.
The Eurosystem’s oversight of non-systemically important large-value and retail payment systems covers the following (reference year 2012):
|Large-value payment systems of non-systemic importance||Retail payment systems of prominent importance||Other retail payment systems|
|POPS (Finland)||CEC (Belgium)||RPS (EMZ) (Germany)|
|JCC Payment Systems Ltd (Cyprus)||ESTA (Estonia) [closed down in February 2014]|
|DIAS (Greece)||IRECC (Ireland)|
|SIA-BICOMP (Italy)||IPCC (Ireland)|
|CSS (Netherlands)||ACO (Greece)|
|SNCE (Spain)||ICBPI-BICOMP (Italy)|
|EKS (Latvia)||ICCREA-BICOMP (Italy)|
|EURO SIPS (Slovakia)||CSM Banca d’Italia (Italy)|
|Bankart SEPA IKP (Slovenia)||Cyprus Clearing House, JCC retail transfer system, government payment system, large-value credit transfer system (Cyprus)|
|IBERPAY SNCE (Spain)||Malta Clearing House (Malta)|
|SICOI (Portugal)||CSM (Netherlands)|
|SEPA IDD CORE, SEPA IDD B2B, Poravnava kartic, Poravnava bankomatov, Multilateralni kliring Activa, Moneta (Slovenia)|