2017 Assessment of the Reserve Bank Information and Transfer System List of tables

Chapters

Table 1: Summary of Progress against 2015 Recommendations
Recommendation Principle Progress
The Bank should continue to work towards the implementation of the new RITS Regulations, with a view to improving their clarity. 1. Legal basis Addressed

A new version of the RITS Regulations was developed, coming into effect on 27 March 2017. The new version is designed to ensure that the clarity of the Regulations is improved, as well as making it easier to amend the Regulations to incorporate new services.
The Bank should complete its analysis and testing of the mechanisms in place to prevent a cyber-related incident and consider whether additional measures need to be put in place. 17. Operational risk Addressed

During the assessment period a project to review and test the mechanisms in place to prevent a cyber-related incident was completed. The project involved a comprehensive review of risks and a stocktake of existing security controls, a review of alternative cyber security frameworks, a gap analysis of existing cyber security controls and practices against key frameworks, and a program of layered penetration testing. A number of recommendations were made to further enhance RITS's cyber resilience and work is underway to implement these recommendations.
The Bank should complete its project to review and consider options to improve RITS's ability to detect and recover from a disruption of service, or loss of software or data integrity, resulting from a wide range of operational incidents, including a cyber attack. 17. Operational risk Addressed

During the assessment period a project to review and consider options to improve the ability to detect and recover from a disruption of service in RITS, or loss of software or data integrity, resulting from a wide range of operational disruptions, including a cyber attack, was completed. A number of recommendations were made to further strengthen RITS's cyber resilience, and work is underway to implement these recommendations.
The Bank is encouraged to review its cyber-risk management arrangements in light of forthcoming CPMI-IOSCO guidance on cyber resilience for FMIs. 17. Operational risk Addressed

The Bank's Payments Settlements Department completed a self-assessment of RITS's cyber-risk management arrangements against the Cyber Resilience Guidance and an assessment against the governance chapter of the Cyber Resilience Guidance was carried out by the Bank's Payments Policy Department. No significant issues were identified through these reviews.
Table A.1: Payments in Australia
Daily average(a), April 2016–March 2017
  Number(b) '000s Value(b) $ billion Interbank settlement value in RITS
$ billion
RITS RTGS 45.6 174.3 167.2
SWIFT payments (HVCS) 42.3 103.4 103.4
Debt securities (Austraclear)(c) 3.2 58.3 51.3
RITS cash transfers 0.2 12.5 12.5
CLS 53.8 259.3 2.7
Retail payments 44,573.9 65.5 4.2
Direct entry(d) 14,272.2 58.6  
Cheques 417.1 4.5  
Credit/charge cards 10,068.3 1.2  
Debit cards 19,816.3 1.1  
Equity settlements (CHESS) 1,037.8 4.8(e) 0.5
Property settlements (PEXA) – – 0.1(f)

(a) Business days
(b) Includes payments between customers of the same financial institution
(c) Excludes intraday repurchase agreements
(d) Includes BPay
(e) Gross value of equity trades
(f) Net value of property settlement batches; each property settlement batch may involve a number of payments

Sources: ASX; CLS; RBA
Table A.2: RITS Participation(a)
  Number of ESAs As at end March 2017 Number of payments(b) Per cent, year to end March 2017 Value(b) Per cent, year to end March 2017
Major domestic banks 4 61.9 53.4
Foreign banks 35 31.9 36.4
Other domestic institutions 14 2.7 2.6
Clearing and settlement facilities and the Bank 5 3.5 7.6
Dormant accounts(c) 35 – –
Total 93 100.0 100.0

(a) Excludes RITS members that do not hold an ESA
(b) Outgoing payments
(c) Indirect RITS participants that maintain an ESA for contingency purposes

Source: RBA
Table A.3: RITS Availability
Per cent
  Bank-operated systems External Feeder systems
2016 99.992 99.984
2015 99.831 99.922
2014 99.976 99.987
2013 99.989 99.914
2012 99.948 99.818
2011 99.997 99.981
2010 99.993 99.844

Source: RBA
Table A.4: List of Multilateral Net Batches in RITS
Linked system Underlying transaction types Governance and ownership
CHESS Batch Primarily equity security transactions. The CHESS Batch is administered by ASX Settlement, which is owned by ASX Group. ASX Settlement is licensed as a clearing and settlement facility and is subject to the Bank's Financial Stability Standards for Securities Settlement Facilities.
Low Value Settlement Service Cheque, DE (including the BPAY system) and card transactions. Each retail payment system has its own rules and procedures. These rules and procedures are determined by the system administrator (e.g. the Australian Payments Network), in consultation with its members.
MasterCard Batch MasterCard brand credit and debit card payments. MasterCard is a privately owned company incorporated in the US and listed on the New York Stock Exchange.
PEXA Batches Property transactions. PEXA is owned by the Victorian, New South Wales, Queensland and Western Australian Governments, as well as a number of Australia's largest financial institutions.