EBF advisor: Denisa Mularova
Publication date: 28 February 2017
Key messages
- In response to the ERPB call for a swift implementation of instant payments to meet the needs of users of payment services, a number of market initiatives are currently under way. The launch of the investigation phase of TIPS is in several instances slowing down ongoing projects, opening up new questions and calling for reconsideration of strategies by both PSPs and infrastructure providers alike. The TIPS project should be assessed from a holistic perspective taking into account the cost/benefits of the overall marketplace and not only cost recovery at the level of the Eurosystem.
- A single solution for instant payments would be ideal. A single solution would cater for an optimal model from a liquidity perspective as well as preventing system and solution fragmentation of IP services across Europe. The way TIPS is currently envisaged would however not appear to serve this purpose unless made mandatory.
- As TIPS is not foreseen to become interoperable with other (CSM) solutions, its success is questionable as it cannot guarantee 100 percent reachability. As currently designed, it could contribute to fragmentation rather than solving it.
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The post EBF response to the ECB consultation on TIPS appeared first on EBF.
]]>EBF advisor: Denisa Mularova
Publication date: 30 June 2017
Key messages
- The CLM should be future proof. Since systems all over the world are steadily moving towards 24/7 operation, with TIPS a leader in this respect, CLM design should anticipate potential future need for 24/7 operation. A future move to managing liquidity on a global basis should be taken into account in the design as well.
- It is considered essential that the GUI provides at least the same functionality and efficiency as the existing ICM for TARGET 2 transactions.
- It is also important that users have the ability to query available liquidity at both individual account and aggregate levels on all accounts for which they are responsible.
- Migration to ISO 20022 is likely to be highly complex and require full end to end analysis since it will need to be coordinated and synchronised across the whole end to end chain involving not only the central system and participants but also in some cases participants’ customers. It is estimated that at least 3 to 4 years will be needed following finalisation of the UDFS and possibly longer dependent on further analysis. It will also be important to recognise that correspondent banking interfacing with RTGS may still be using FIN.
- It is essential that sufficient information is provided to participants to enable them to be sure their back-office systems are providing up to date and accurate information. In order to achieve this, full information on message flows and structure is required as soon as it is available.
- Finally, it is recommended that the choice of Network Service Providers is subject to a consultation with the whole user base.
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Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
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The post ECB consultation on future of RTGS – T2-T2S: industry response appeared first on EBF.
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