VI. All netting schemes should ensure the operational reliability of technical systems and the availability of back-up facilities capable of completing daily processing requirements.
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6.1 The providers of netting services and, in particular, of multilateral netting systems should ensure that all hardware, software, and communications facilities which support daily operations have a high degree of reliability and integrity. In particular, contingency plans should be established for the failure of each of these facilities which should include the availability of back-up facilities capable of completing the settlement process within the normal parameters of the relevant money markets as well as the completion of any necessary accounting and processing work prior to the start of the next business day. 6.2 Netting schemes have the potential to become significant mechanisms for the settlement of interbank transactions on which the participants come to rely for the completion of their daily treasury and money market operations. Some netting schemes have already achieved this status. The dependence of financial institutions on these systems implies the need to ensure their technical integrity and reliability -not just for the benefit of the individual participants but to help ensure the stability of the relevant markets and to limit systemic risks. In this setting, and in a world of 24-hour trading, the availability of back-up facilities capable of completing one calendar day's business before the start of the next is clearly only a minimum requirement for the sound operation of any netting scheme.
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Minimum Standards for the Design and Operation of Cross-Border and Multi-Currency Netting and Settlement Schemes
