(a) A designated financial market utility that is designated on the basis of its role as the operator of a payment system must implement rules, procedures, or operations designed to ensure that it meets or exceeds the following risk-management standards with respect to the payment, clearing, and settlement activities of that payment system:
(1) The payment system has a well-founded legal basis under all relevant jurisdictions.
(2) The payment system's rules and procedures enable participants to have a clear understanding of the payment system's impact on each of the financial risks they incur through participation in it.
(3) The payment system has clearly defined procedures for the management of credit risks and liquidity risks, which specify the respective responsibilities of the payment system operator and the participants and which provide appropriate incentives to manage and contain those risks.
(4) The payment system provides prompt final settlement on the day of value, during the day and at a minimum at the end of the day.
(5) A payment system in which multilateral netting takes place is, at a minimum, capable of ensuring the timely completion of daily settlements in the event of an inability to settle by the participant with the largest single settlement obligation.
(6) Assets used for settlement are a claim on the central bank or other assets that carry little or no credit risk and little or no liquidity risk.
(7) The payment system ensures a high degree of security and operational reliability and has contingency arrangements for timely completion of daily processing.
(8) The payment system provides a means of making payments that is practical for its users and efficient for the economy.
(9) The payment system has objective and publicly disclosed criteria for participation, which permit fair and open access.
(10) The payment system's governance arrangements are effective, accountable, and transparent.