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), amended recently, 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.
The 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 2016):
|Non-systemically important large-value payment systems||Prominently important retail payment systems||Other retail payment systems|
|POPS (Finland)||Clearing Service Austria (Austria)||Clearing Service International (Austria)|
|PSA (Austria)||MasterCard (Belgium)|
|CEC (Belgium)||Cyprus Clearing House for Cheques (Cyprus)|
|JCC Payment Card System (Cyprus)||JCC SDD (Cyprus)|
|Ühiskasutuse süsteem (Estonia)||SEPA.EU (France)|
|Interbanking Systems S.A. - DIAS (Greece)||RPS (EMZ) (Germany)|
|SICOI (Portugal)||STEP2-CC (Germany)|
|SIPS (Slovak Interbank Payment Systems) (Slovakia)||Athens Clearing Office - ACO (Greece)|
|SIMP-PS (Slovenia)||IPCC (Ireland)|
|SNCE (Spain)||CSM Banca d’Italia (Italy)|
|Electronic Clearing System EKS (Latvia)|
|Local clearing system for card payments (Latvia)|
|Malta Clearing House (Malta)|
|Equens CSM (Netherlands)|
|First Data Slovakia (Slovakia)|
|Multilateralni kliring Activa (Slovenia)|
|Plačilni sistem Moneta (Slovenia)|
|Poravnava bankomatov (Slovenia)|
|Poravnava kartic (Slovenia)|
|Poravnava Multilateralnega kliringa MasterCard (Slovenia)|
The Eurosystem strives to ensure a level playing field in its oversight requirements for payment systems processing in euro taking into account their size and importance. This includes payment systems located outside the euro area that comply with the Eurosystem’s location policy, as laid out in the
Eurosystem oversight policy framework. For this reason, the following offshore payment systems are either overseen as part of a cooperative arrangement or monitored for potential changes in circumstance:
- Visa Europe (United Kingdom)
- Hong Kong Euro Chats (Hong Kong)
- CDFCPS (China).