Such standards are essential given that, in the interest of transparency and improved risk management, policymakers have encouraged the concentration of activities at these key nodes. And it is particularly important that the standards be promulgated globally, given the potential for OTC derivatives to span multiple jurisdictions and to migrate to jurisdictions where standards and risk management are less robust.
History shows that central banking has been involved in the functioning of payment and settlement much longer than in the operation of monetary policy. The term “central banking” comes from the fact that this has long been at the center of the payment and settlement infrastructure.