On 21 August 2014, the European Central Bank (ECB) issued a press release stating that it has identified four key payment systems that are now under the ECB Regulation on oversight requirements for systemically important payment systems (SIPS).

The four systems identified are:

  • Target2, operated by the Eurosystem;
  • EURO1, operated by EBA Clearing;
  • STEP2-T, operated by EBA Clearing; and
  • CORE(FR), operated by STET (a joint initiative of six major French banks).

The systems were identified according to the combination of at least two of the four main criteria, which consist of the value of payments settled, market share, cross-border relevance and provision of services to other infrastructures. The Eurosystem will review the list annually on the basis of updated statistical data.

This is the first time that the ECB has made use of its regulatory powers in the field of payment systems oversight.

Competent authorities (such as Eurosystem central banks with primary oversight responsibilities for one or more payment systems) are expected to regularly assess compliance of these systems with the SIPS Regulation.