Payments System Liquidity
The Intraday Liquidity Flows report provides a view of the infrastructure that enables more than $14 trillion of USD denominated payments and the associated $9 trillion of cash needed to settle those payments to move through the financial system. The study describes the dependencies and interconnections across payments, clearing, and settlement systems and highlights the importance of the underlying infrastructures and the value of continuous review of and improvements to liquidity management.
In formulating these remarks the Payments Risk Committee (PRC) has focused on the issues raised in the Basel Committee for Banking Supervision’s consultative document, Monitoring indicators for intraday liquidity management. Building on collective expertise developed through various intraday liquidity studies, the PRC is pleased to offer recommendations for the proposed monitoring indicators for intraday liquidity management.
Evaluates the potential market demand and possible viability of three proposed private sector intraday liquidity services.
Investigates potential implications for global intraday liquidity arising from recent developments in the global markets and payments environment.
Examines the impact of the euro, CLS Bank, and CHIPS finality on U.S. dollar intraday liquidity management.
The Task Force was formed in September 2009 under the auspices of the Payments Risk Committee (PRC), a private sector body sponsored by the Federal Reserve Bank of New York ("the NY Fed"). The Task Force was formed at the request of the NY Fed to address weaknesses that became visible over the course of the recent financial crisis.
The Tri-Party Repo Infrastructure Reform Task Force ("the Task Force"), under the auspices of the Payments Risk Committee (PRC), released its final report concluding the work of the Task Force in its May 17 2010 report. The Target State outlined in the report directly addresses one of the key infrastructure weaknesses of the U.S. tri-party repo market.
The Tri-Party Repo Task Force issued recommendations in May 2010 to reduce the potential for systemic risk in the tri-party repo market. Since that time, the Task Force has continued to meet to secure effective implementation of these recommendations, in particular those relating to changes in operational arrangements and the reduction of intraday credit provided by the Clearing Banks. This Progress Report provides an update on the status of the Task Force's recommendations.
The report presents the Task Force recommendations to enhance the infrastructure supporting tri-party repo transactions.
In the interest of transparency and to make the Task Force’s ideas available to a broader audience, the progress report summarizes the Task Force’s progress to date, including draft recommendations and proposals under consideration.
Identifies best practices for financial institutions and payment and settlement utilities to avoid and rapidly recover from telecommunication outages.
Payments System Risk
The Payments Risk Committee (PRC) today released a report outlining recommendations for central counterparties (CCPs) on the transparency of risk management practices to support clearing member due diligence. The PRC believes that reporting of risk management practices at CCPs is fundamental to enable clearing members to conduct their own due diligence on the risks they face as clearing members. The report also recommends a common framework for reporting, which is expected to encourage greater consistency in reporting across CCPs. This report reflects a joint effort of the PRC member firms and eight CCPs.
A joint report of the Payments Risk Committee and Wholesale Customer Advisory Group that reviews some of the underlying activities and processes that contribute to late day funds transfer activity on the Fedwire Funds Transfer System.
Assesses the impact of the CLS Bank and overall progress in reducing foreign exchange settlement risk.
Analyzes risks and issues associated with cross-border securities settlement.
Financial Market Infrastructures
PRC's comment letter on the CPSS-IOSCO consultative report, Principles for financial market infrastructures
In formulating these remarks the Payments Risk Committee (“PRC”) has focused primarily on the issues raised in the cover note to the consultative report on Principles for Financial Market Infrastructures (the “Report”). In addition, these remarks apply primarily to central clearing counterparties (“CCPs”), but in some cases the underlying principles are relevant to other FMIs.
A study of how global banks assess, measure and manage the risks associ ated with participating in systems handling payments, clearing and settlement in the U.S. and around the world.