On January 3, 2017, the ECB published a consultation paper on the revision of the Regulation on oversight requirements for SIPS (“SIPS Regulation“).

There are four payment systems that fall under the SIPS Regulation, which are TARGET2, EURO1, STEP2-T and CORE(FR). The SIPS Regulation aims to ensure the efficient management and smooth operation of SIPS in the euro area.

A press release published with the consultation paper states that, under the SIPS Regulation, the general application of the SIPS Regulation must be reviewed every two years and amended if needed. Among other things, the revised version sets clearer requirements on liquidity risk mitigation and new requirements on cyber resilience, and assigns additional powers to the competent authorities.

As part of the revision, the ECB has also published a consultation paper on its decision relating to the methodology used to calculate sanctions that can be imposed in cases of non‑compliance with the SIPS Regulation.

The consultation closes on February 20, 2017.