Committee on Payments and Market Infrastructures

Committee on Payments and Market Infrastructures
Name	Committee on Payments and Market Infrastructures
Formation	1990 (as Committee on Payment and Settlement Systems)
Parent organization	Bank for International Settlements
Headquarters	Basel, Switzerland
Key people	Fabio Panetta (Chair)
Website	https://www.bis.org/cpmi/

Committee on Payments and Market Infrastructures. The Committee on Payments and Market Infrastructures is a global standard-setting body for payment, clearing, settlement, and related arrangements, operating under the auspices of the Bank for International Settlements. Its primary mission is to promote the safety and efficiency of payment, clearing, settlement, and related arrangements, thereby supporting global financial stability. The committee's work is foundational to the functioning of the international monetary system and is highly influential among central banks and financial market infrastructures worldwide.

History and establishment

The committee was originally established in 1990 by the G10 central bank governors as the Committee on Payment and Settlement Systems. Its creation was driven by a growing recognition of the systemic importance of payment and settlement systems following financial market developments in the 1980s, such as the rise of electronic funds transfer. A pivotal moment in its early history was the publication of the "Lamfalussy Report" in 1990, which established core principles for the design and operation of cross-border netting schemes. In 2014, the committee was renamed the Committee on Payments and Market Infrastructures to reflect a broadened mandate that explicitly included financial market infrastructures beyond payment systems, such as central counterparties and securities settlement systems. This change followed its merger with the Technical Committee of the International Organization of Securities Commissions on this subject, marking a significant evolution in its scope and collaborative approach.

Mandate and objectives

The core mandate of the committee is to strengthen the regulatory, policy, and operational framework for payment, clearing, and settlement systems globally. Its key objectives include enhancing the safety of these critical infrastructures to prevent systemic disruptions, promoting their efficiency to support economic activity, and ensuring they remain robust in the face of evolving risks like cyber threats. The committee seeks to achieve these goals by developing and promoting the implementation of international standards and best practices. It also conducts in-depth analysis of market developments, such as the implications of distributed ledger technology and stablecoins, to provide forward-looking guidance to its member institutions and the broader financial community.

Organizational structure and membership

The committee operates from the headquarters of the Bank for International Settlements in Basel. Its membership consists of senior officials from central banks and, in some cases, other relevant authorities from 28 jurisdictions, including major economies like the Federal Reserve, the European Central Bank, and the Bank of Japan. The committee is chaired by a prominent central banker, such as Fabio Panetta of the Banca d'Italia. Its work is supported by several expert working groups and task forces that focus on specialized topics, ranging from wholesale payments to retail payments innovation. The committee maintains a close working relationship with the Basel Committee on Banking Supervision, often collaborating on issues of mutual concern, such as bank capital requirements for exposures to financial market infrastructures.

Key publications and standards

The committee is renowned for its influential publications, which serve as de facto global standards. The cornerstone of its work is the *Principles for Financial Market Infrastructures*, developed jointly with the International Organization of Securities Commissions, which sets out comprehensive requirements for systemically important payment systems, central securities depositories, and other infrastructures. Other seminal reports include the *Core Principles for Systemically Important Payment Systems* and guidance on topics like *Central Bank Digital Currencies*. Its frequent reports on statistical data, such as those on foreign exchange turnover and overnight index swap markets, are essential references for policymakers and market participants. The committee also publishes the *Red Book*, a detailed overview of payment systems in its member countries.

Role in global financial stability

The committee plays a critical role in safeguarding global financial stability by ensuring the resilience of the plumbing of the global financial system. Its standards directly address risks such as credit risk, liquidity risk, and operational risk within critical market infrastructures. By promoting robust risk management, demanding high levels of capital adequacy for central counterparties, and setting expectations for business continuity planning, the committee's work helps prevent localized failures from cascading into broader crises. Its analysis and policy work on emerging trends, including the settlement of tokenised assets and the use of APIs in payments, are vital for maintaining stability in an evolving financial landscape.

Relationship with other international bodies

The committee maintains extensive and formalized relationships with other key international financial institutions and standard-setting bodies. Its most significant partnership is with the International Organization of Securities Commissions, with which it jointly issues the *Principles for Financial Market Infrastructures*. It is a member of the Financial Stability Board and contributes to its work on resolving systemic vulnerabilities. The committee also collaborates closely with the World Bank, the International Monetary Fund, and the Committee on the Global Financial System on issues ranging from technical assistance to macroeconomic analysis. These relationships ensure a coordinated international policy response to challenges in payments and market infrastructure, reinforcing the committee's global influence.

Category:Bank for International Settlements Category:International economic organizations Category:Financial regulation