Payment systems replacement
In April 2016, the Reserve Bank started the Payment Systems Replacement Programme, focussing on implementing a change programme that ensures the on-going provision of payment and settlement infrastructure and systems.
The Reserve Bank conducted a strategic review of ESAS and NZClear in 2013/14. As a result of the strategic review, and industry feedback, the Bank decided that it must continue to own and operate ESAS, given that ESAS is central to the financial systems and the Bank’s statutory functions. The Reserve Bank has chosen to retain the NZ Clear business after a divestment process attracted no sufficiently compelling commercial bids.
The Reserve Bank announced the contract with SIA Perago to provide a Real Time Gross Settlement System (RTGS) in April 2016. The RGGS will replace the current software that underpins ESAS.
News Release: SIA to supply new settlement system.
The Bank is currently negotiating a contract for a Central Securities Depository (CSD) to replace NZ Clear’s existing system. In line with the findings of the 2013/14 strategic review, the replacement system will be implemented separately and interfaced via SWIFT messaging.
SIA Perago are currently implementing required changes to the standard RTGS System to meet our industry requirements.
The Bank is working through a requirements clarification phase for the CSD with SIA Perago.
A key part of the Payment Systems Replacement Project is the replacement of the hardware that hosts the current ESAS and NZ Clear systems. The current infrastructure is nearing the end of its support life.
The Bank is currently negotiating contracts for replacement hardware, operating systems, databases and essential middeware, and the on-going support for this infrastructure.
In September 2016, the bank appointed Nathan Lewer to the role of Stakeholder Liaison and Sector Readiness Manager to the Payment Systems Replacement programme.
The Bank has facilitated a number of detailed RTGS workshops throughout the second half of 2016. A summary of key findings from these workshops has been communicated to ESAS account holders. Further workshops and forums are planned in early 2017 to review key industry requirements for the implementation and support of the Payment System.
- Development of required changes to standard RTGS system for ESAS is in progress.
- The Bank is in contract negotiation for the Central Securities Depository (CSD) for NZ Clear.
- An Infrastructure Replacement contract is currently under negotiation.
- Industry liaison and engagement will be increasing in early 2017.