In many jurisdictions, central banks and other policymakers are reviewing their overall structures for large value payment systems (LVPS), with an eye toward speed and safety. For example, the U.S. Federal Reserve System is proceeding with the development of instant clearning and settlement rails, known as “FedNow,” while at the same time, improvements are being made to the parallel privately-run systems of The Clearing House.
This Course will cover the broad strategic issues of a jurisdiction’s large value payment system LVPS architecture, such as optimal design and development, optimal mix of public and private ownership, and the risks and rewards of allowing non-bank financial institutions access to accounts at the central bank. It will also cover the governance, oversight, and regulation of LVPS as they currently exist in many jurisdictions.
It will review some of the important aspects of regulating LVPS, extending the coverage to cross-border issues, foreign exchange settlement, and recent trends in market infrastructure improvement. The course will also cover the Principles for Financial Market Infrastructures (PFMIs), the designation of systemically important FMIs, and their evaluation against the PFMIs.
Through lectures, interactive discussions, case studies and sharing of experiences from the various delegates' countries, participants will learn about the fundamental concepts of oversight on LVPS, in line with leading standards and national policy objectives. Important changes and innovations in LVPS over the last decade will be reviewed, Participants will develop an understanding on how such trends and innovations impact Central Banks in carrying out their LVPS oversight functions.
The course is aimed at mid-level officers or technical staff, with at least two years working experience of payment and settlement operations (particularly LVPS), policy, oversight, risk profiling and management, or IT supervision. Participants should have basic knowledge of payment and settlement concepts and operations.