Re: The Payments Architecture within which a Web Payments Architecture occurs

On 05/14/2015 11:48 PM, Joseph Potvin wrote:
> The 24 Principles are explained in detail in that document under these
> headings:

Thanks Joseph, that helped me understand what you were asking us to do.

In general, I think that there may be a disconnect wrt. what the Web
Payments Architecture is doing (specifying a technical architecture of
how to run a payment over the Web) and what the BIS Principles for
financial market infrastructures is doing (specifying an operational
architecture for running a Financial Market Infrastructure). There is
very little overlap, imho.

For example, browsing through the document, I don't see any overlap in
these areas:

> Principle 1: Legal basis
> Principle 2: Governance
> Principle 3: Framework for the comprehensive management of risks
> Principle 4: Credit risk
> Principle 5: Collateral
> Principle 6: Margin
> Principle 7: Liquidity risk
> Principle 9: Money settlements
> Principle 10: Physical deliveries
> Principle 11: Central securities depositories
> Principle 12: Exchange-of-value settlement systems
> Principle 13: Participant-default rules and procedures
> Principle 14: Segregation and portability
> Principle 15: General business risk
> Principle 16: Custody and investment risks
> Principle 17: Operational risk
> Principle 18: Access and participation requirements
> Principle 19: Tiered participation arrangements
> Principle 20: FMI links
> Principle 23: Disclosure of rules, key procedures, and market data
> Principle 24: Disclosure of market data by trade repositories

These areas could have some overlap, but at most we'd just reference the
principles in the use cases document (not the Web Payment Architecture
document):

> Principle 8: Settlement finality
> Principle 21: Efficiency and effectiveness
> Principle 22: Communication procedures and standards

In short - the BIS Principles document says what an Financial Market
Infrastructure should do from an operational perspective while the Web
Payment Architecture specifies how a payment flows through the Web from
a technical perspective. There is no duplication of effort as far as I
can tell. The most we could do is say "The Web Payment Architecture
makes it easier for BIS Principles #8, #21, and #22 to be achieved."

Is that what you were looking for, or am I still missing something?

-- manu

-- 
Manu Sporny (skype: msporny, twitter: manusporny, G+: +Manu Sporny)
Founder/CEO - Digital Bazaar, Inc.
blog: The Marathonic Dawn of Web Payments
http://manu.sporny.org/2014/dawn-of-web-payments/

Received on Friday, 15 May 2015 04:28:52 UTC