As a critical system to the national economy, STET is classified by the Eurosystem as a Systemically Important Payment System . STET is compliant with the ten Core Principles established for SIPS and aims to comply with the Regulation of the European Central Bank N°795/2014 and N°2017/2094.
The requirement for Operational Excellence
The Core Principles relate to:
- I. Having a well-founded legal basis
- II. Having rules to enable participants to have a clear understanding of the financial risk
- III. Have clearly defined procedures for the management of credit and liquidity risk
- IV. Provide prompt final settlement on the day of value
- V. Ensure timely completion of daily multilateral net settlement in the event of a participant failure
- VI. Assets used for settlement should preferably a claim on the central bank
- VII. Have high degree of security, operational reliability and contingency arrangement to ensure completion of the daily processing
- VIII. Provide a means of making payments practical to its users and efficient for the economy
- IX. Have objective criteria for participation which permits fair and open access
- X. Have an effective, accountable and transparent governance arrangements
Systems not classified as SIPS only need to comply with principles I, II, VII and X.