Exchange Settlement Account System (ESAS) access review

Opened 7 Oct 2024

Overview

We are now consulting on our revised access policy and whether it is easy to follow. This is the second consultation in the review.  

We are also asking for feedback on what clarity and guidance would be useful to help navigate the application process.  We will then consider feedback and finalise the access policy.

Because ESAS comes under the Financial Market Infrastructures Act (2021), we need to consult with and seek approval from RBNZ’s Board.

While we are considering opening access, we need to ensure access can be broadened safely. No decisions about access have been made yet.

About the first consultation

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)

Summary of themes from the first consultation

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)

How to have your say

Email your feedback to ESASAccessReview@rbnz.govt.nz. Submissions will close on 18 November 2024.

The consultation paper includes the following questions that you can respond to when providing feedback.

Questions asked in this consultation

  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?