The Committee on Payment and Settlement Systems (CPSS) has published an extensive list of new standards, which aim to strengthen financial market infrastructures (FMIs) and systems that facilitate the clearing, settlement and recording of monetary and other financial transactions.
In a report published this week, CPSS highlights that if these FMIs and payment systems are not properly managed, they could "pose significant risks to the financial system and be a potential source of contagion, particularly in periods of market stress".
It believes that such a disruption could threaten the stability of domestic and international financial markets and the broader economy.
The standards apply to systems that include central securities depositories, securities settlement systems and central counterparties.
Continuity of technology plays a key role in the broad list of 24 standards, especially when considering operational risk.
The report reads: "An FMI should have a business continuity plan that addresses events posing a significant risk of disrupting operations, including events that could cause a wide-scale or major disruption.
"The plan should incorporate the use of a secondary site and should be designed to ensure that critical IT systems can resume operations within two hours following disruptive events."
It goes on to state that depending on the FMI's importance, even a third site could be considered, and that each site should have robust resilience based on the duplication of software and hardware.
An FMI should also publicly disclose how much individual services operated on the system cost to use, and release details on the system design, as well as technology and communication procedures that affect the costs of operating the FMI. The CPSS believes this will help potential users evaluate the total cost of taking up a particular service.