SWIFT has launches a new business continuity solution to support global payment systems. Developed by SWIFT, the Market Infrastructure Resiliency Service (MIRS) is a backup service for Real Time Gross Settlement (RTGS) systems - electronic platforms used for the continuous settlement of high value and multi-currency cash payments between banks.
Central banks and financial market infrastructures operate RTGS systems to ensure effective settlement of high value payment transactions. As a backup platform, MIRS provides a third line of support to RTGS operators experiencing problems with first and second line backup systems. Once active, MIRS provides the essential functions required to achieve final settlement in real-time on a transaction by transaction basis. Once MIRS is deployed, RTGS operators remain in full control of the service while SWIFT manages the technical operations.
Juliette Kennel, head of market infrastructures, SWIFT, says: "Given the prominent role that RTGS systems play in the world economy, it is vital to safeguard effectively against operational disruptions and manage related risks. MIRS provides market infrastructures with the necessary tools to maintain business as usual operations even in the very unlikely but high impact event that their first and second lines of defence were to fail."
Since July 2011, SWIFT has been working with a group of central banks, including the Bank of England, to identify the necessary requirements to enable RTGS functions to operate normally in the case of disruptions at their existing sites. At the end of 2013, the Bank of England completed a pilot and successfully tested MIRS with the Clearing House Automated Payment System (CHAPS) community. CHAPS is a UK payments scheme that processes and settles both systemically important and time-dependent payments in sterling. On 24 February 2014, the Bank of England went live with MIRS, further increasing the resiliency of the Bank's RTGS service, the UK's High Value Payments System.
Toby Davies, head of market services at the Bank of England, says: "With two live operational sites, our current RTGS systems are highly resilient. However, we wanted to establish an additional contingency solution that was both robust and cost effective. MIRS will allow us to continue operating at full business volumes in the unlikely event of an outage affecting both our existing sites simultaneously."
MIRS is available to all HVPS market infrastructures, including those not currently on SWIFT.