Exchange Settlement Account System (ESAS) access review

Last year as part of the same review we consulted on a new risk assessment framework proposed to evaluate applications to open an ESAS account with us and consider eligibility changes.

We asked for feedback on the ESAS access Risk Assessment Framework (RAF) proposed to form part of our revised ESAS access policy and criteria.

An important part of how we apply the access policy is assessing risks that may be introduced into the system by the ESAS applicant. We would use the RAF to evaluate the risks that an ESAS applicant may pose to the system if they were accepted to become an account holder. The draft framework considers CPMI-IOSCO's Principles for Financial Market Infrastructure (PFMI) in capturing the risks relevant for a systemically important payment system such as ESAS.

Download the first consultation paper (PDF, 890 KB)

Feedback to our first consultation was largely positive, with 2 significant issues raised around:

• requests for ESAS accounts for non-settlement purposes
• clarification on how the policy would balance objectives around innovation and competition relating to requirements for integrity and reliability.

We advised that the feedback warranted more research. This led to a revised approach to balance our initial risk-based approach with considering the benefits ESAS access brings, particularly around innovation and competition.

Read the summary of submissions and our response (PDF, 464 KB)

1. Do you agree that our access criteria allow for opening participation in ESAS (in line with our intent set out in section 2)?

2. Are the access criteria easy to follow, and if applicable, are there any particular areas where additional guidance or explanation is needed?