Payments System Board Annual Report – 2011 Liaison Activity

Liaison with Industry

The Reserve Bank consulted widely on payments, clearing and settlement issues in 2010/11. It met with various stakeholders in retail payments systems – including financial institutions, merchants, payment service providers and consumer representatives – to discuss a range of matters. Many of these discussions related to the Strategic Review of Innovation or the joint RBA–Treasury ATM taskforce. Meetings were also held with stakeholders in financial markets to discuss clearing and settlement issues. These included discussions related to the oversight of the licensed clearing and settlements (CS) facilities and prospective changes to the over-the-counter (OTC) derivatives market.

The Reserve Bank continued to work closely with other regulatory and government agencies. Examples include the joint ATM taskforce with Treasury, and the reviews of financial market infrastructures regulation and central clearing for OTC derivatives undertaken by the member agencies of the Council.

In line with its liaison agreement with the Australian Payments Clearing Association (APCA), the Reserve Bank met with APCA management following each APCA Board meeting in 2010/11, as well as with the APCA Board on a number of occasions. The liaison agreement was reviewed during the year, with some changes subsequently made to ensure that the arrangements remain effective.

The Reserve Bank participated in a number of public fora on payments system issues. The Deputy Chairman spoke on the strategic review of innovation at the Cards and Payments Australasia conference in March. The Head and Deputy Head of Payments Policy appeared before the Senate Economic References Committee's inquiry into competition within the banking sector. Other staff attended various payments and CS industry events, including conferences and forums organised by APCA and the Australian Securities and Investments Commission.

International Engagement

The Reserve Bank was represented at a number of international groups in 2010/11: the Committee on Payment and Settlement Systems (CPSS), the CLS Oversight Committee, the Executives' Meeting of East Asia-Pacific Central Banks (EMEAP) Working Group on Payment and Settlement Systems, and the OTC Derivatives Regulators' Forum. Involvement in the CPSS included participating in a number of working groups and the review of the standards for payments, clearing and settlement systems.

The Reserve Bank also engaged with overseas central banks and regulatory agencies on a less formal basis. Such engagement included discussing competition issues in retail payments with relevant authorities in North America, and keeping abreast of developments in OTC derivatives regulation around the world via discussions with various central banks and securities regulators. Engagement with global financial market stakeholders, such as the International Swaps and Derivatives Association, also provided useful information about developments in OTC derivatives.