SBP Issues New Rules for PRISM+ System

The State Bank of Pakistan (SBP) has promulgated revised operating rules governing its real-time settlement platform PRISM+, superseding the prior regulatory framework issued in 2018 and establishing updated protocols for both funds transfers and government securities transactions.

The revised framework, effective immediately, delineates the operational architecture of PRISM+, including eligibility criteria for participation, messaging and communication standards, settlement mechanisms, liquidity management procedures, risk mitigation controls, and reporting obligations.

PRISM+, introduced in June of the preceding year as Pakistan’s enhanced real-time gross settlement (RTGS) system, incorporates an integrated Central Securities Depository (CSD) module alongside funds settlement, thereby extending its functionality to encompass both cash and securities-related transactions.

According to the SBP, the updated rules incorporate stakeholder feedback and reflect system enhancements designed to align the platform with internationally recognised standards and best practices.

The regulatory framework governs a comprehensive range of activities conducted through PRISM+, including the issuance, auction, trading, custody, and settlement of government marketable securities, as well as associated liquidity management operations.

It further consolidates multiple operational directives issued over time, formalising revised procedures aimed at improving operational efficiency, ensuring settlement finality, and strengthening business continuity arrangements.

The applicability of the rules extends to scheduled banks, primary dealers and their respective sub-categories, development finance institutions, Islamic banking institutions and branches, as well as other entities authorised by the SBP to participate in government securities markets and settlement systems.

The central bank has stated that the revised framework is intended to reinforce financial market infrastructure and facilitate secure, efficient, and reliable transaction processing across the national financial system.