The challenging part: creating the right regulatory environment Beyond the technical and semantic dimensions of interlinking, we have to ensure that the business models of the payment systems are also interoperable. This depends on the regulatory environment, industry standards and market practices. The G20 Roadmap on cross-border payments has already shed light on many business interoperability issues.
A recent CPMI report on interlinking payment systems published last July provides a comprehensive overview of the many legal frictions; they range from currency regulations to the increased legal risks borne by interconnected systems, especially in terms of participant default, settlement finality, netting, novation and collateral enforcement provisions.