Guide for BI-COMP clearing system operators published
The Banca d'Italia has published an updated guide for operators of BI-COMP, its euro-denominated retail payment clearing system. The system facilitates multilateral netting of domestic payments and settles balances in central bank money.
Multilateral Netting for Domestic Payments
The BI-COMP system, managed by the Banca d'Italia, performs multilateral netting of payments made with "domestic" instruments.
It acquires payment information, such as elementary items or bilateral balances, from clearing systems.
Credits must be liquid, due, and in legal tender.
Participants clear mutual debits and credits, settling multilateral balances in their RTGS DCA accounts within TARGET.
BI-COMP operates on a daily clearing and settlement cycle, typically starting at 12:00. The process includes data acquisition, bilateral balance processing, multilateral balance determination, and settlement in TARGET.
Successful multilateral clearing depends on the full settlement of all balances.
Insufficient funds in RTGS DCA accounts incur penalties, and the Banca d'Italia may perform an "unwinding" process, excluding affected items from a new clearing cycle to maintain system integrity.
Entry Rules for System Participation
Participation in BI-COMP requires meeting specific criteria, maintained throughout the relationship.
Eligible entities must satisfy TARGET-Banca d'Italia participation requirements, with specific exceptions.
Prospective participants must submit Legal Opinions (Capacity and Country Opinion) confirming compliance with applicable laws.
The Capacity Opinion is waived for EU central banks, the ECB, or Italian-headquartered banks/PSPs.
The Country Opinion is waived for EU-headquartered entities.
Updated Legal Opinions are mandatory if regulatory changes occur, with non-compliance potentially leading to exclusion.
Operators must also possess a unique identification code from the Banca d'Italia for technical access.
Ensuring Payment System Integrity
This comprehensive guide provides essential clarity for operators of a critical retail payment system.
Its detailed articulation of participation requirements and unwinding procedures underscores the central bank's commitment to financial stability.
Such operational transparency is crucial for maintaining trust and efficiency in the national payment infrastructure.