CORE PRINCIPLES FOR SYSTEMICALLY IMPORTANT PAYMENT SYSTEMS

The ten minimum standards for the design and operation of systemically important payment systems. (I) The system should have a well-founded legal basis under all relevant jurisdictions. (II) The system's rules and procedures should enable participants to have a clear understanding of the system's impact on each of the financial risks they incur through participation in it. (III) The system should have clearly defined procedures for the management of credit risks and liquidity risks, which specify the respective responsibilities of the system operator and the participants and which provide appropriate incentives to manage and contain those risks. (IV) The system should provide prompt final settlement on the day of value, preferably during the day and at a minimum at the end of the day. (V) A system in which multilateral netting takes place should, at a minimum, be capable of ensuring the timely completion of daily settlements in the event of an inability to settle by the participant with the largest single set