MAS Electronic Payment System (MEPS), the real-time gross and government securities settlement system, was successfully replaced by MEPS+ on 9 December 2006 after nine years of operation. MEPS+ provides several improved features over MEPS, including:
• use of SWIFT message formats and network;
• advanced queue management capabilities;
• automated collateralised intra-day liquidity facilities; and
• automated gridlock resolution.
The new features improve the efficiency of MEPS+ in several ways. For example, the use of common SWIFT standards for both domestic and international payments allows for greater straight-through processing and cost savings by banks. Participants are also able to better manage their settlement risk using the advanced queue management capabilities. Gridlock resolution and intra-day liquidity facilities reduce the number and duration of queued transactions, resulting in faster settlement.
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The benefits of MEPS+ extend beyond the direct participants of the system. MAS' clients, such as International Financial Institutions and other central banks, are now able to hold and settle Singapore Government Securities in MEPS+ on a delivery versus payment basis.
The financial institutions have worked closely with MAS during the development and implementation of MEPS+.
Overall, settlement risk for both direct and indirect participants of the system has been reduced.
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| All smiles at the MEPS+ post launch debrief on 15 December 2006. |
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