At its meeting today, the Payments System Board discussed several key issues:
The Reserve Bank of Australia’s (RBA’s) assessment of the Reserve Bank Information and Transfer System (RITS). The Board approved the RBA’s evaluation of Australia’s real-time gross settlement system, RITS, against the Principles for Financial Market Infrastructures. The RBA will publish this assessment in the coming weeks.
The RBA's detailed review into the ASX central counterparties’ (CCPs’) observance of the Segregation and Portability Financial Stability Standard (FSS). The review found that various obstacles made it unlikely that client positions would be successfully ported after a clearing participant default. Members discussed the financial stability implications of this finding, noting that successful porting depends on factors both within and outside CCPs' direct control. This review will be part of the RBA's 2024 ASX Assessment to be published later this year, including findings, ratings, and any recommendations against all FSS.
Supervisory lessons learned from the CHESS replacement project. Members discussed findings and recommendations from a Parliamentary Joint Committee report into the CHESS Replacement project. Members supported the Bank's work in responding to these recommendations and contributing to the Government's response.
Central clearing of Australian bond and repo markets. In 2015, the RBA conducted a public consultation on centrally clearing the Australian repo market but concluded that its case was not as strong as in other markets. Members noted changes to this market since 2015 may have increased potential benefits of central clearing. Given these developments, the Board endorsed a consultation on reassessing central clearing for bonds and repos in Australia.
Review of retail payments regulation. Members discussed an upcoming review expected to begin after anticipated changes to the Payment Systems (Regulation) Act (1998) pass parliament. This review will cover all aspects of RBA’s regulation of retail payments and seek views on emerging issues.
Improving security for card transactions online. Members reviewed RBA expectations for industry standardisation in payment card tokenisation to promote security, efficiency, and competition in payments systems. Based on feedback from an industry working group convened by AusPayNet, adjustments were made to clarify these expectations. The Board also endorsed further work by AusPayNet on developing technical standards for token portability and exploring whether Payment Account Reference (PAR) is suitable as a unique identifier for synchronising tokens across payment chains. The Board reiterated its expectation that all relevant industry participants support token portability by June 2025.
Industry measures to disrupt scams. Various measures being implemented by payments industry participants were discussed, including sharing scam intelligence and introducing new technologies like broader confirmation of payee service for New Payments Platform users. Members welcomed collaborative efforts with regulatory agencies to combat scams while considering risks associated with individual payment restrictions such as blocks or delays.