the payment system, as well as the role of the payment system management body, including that of a self - regulatory organisation ( sro ). the international organisation of securities commissions ( iosco ) is an association of organisations that regulate the world ’ s securities and futures markets. for more information, please see https : / / www. iosco. org. bis central bankers ’ speeches as part of this work, the south african reserve bank ( sarb ) commissioned an assessment of the effectiveness of the payment system management body, namely the payments association of south africa ( pasa ). the purpose of the review, known as the pasa effectiveness review, was to address any inadequacies in the regulation of the participants in the payment system and to evaluate the role of pasa in assisting the sarb in discharging its mandate. the sarb published the report last week. the recommendations of the pasa effectiveness review cover four themes, namely mandate and strategy, the governance framework, the regulatory model, and membership. i would like to highlight some of the main findings and recommendations contained in this report. the report found that the pasa mandate was too restrictive and that it disadvantaged nonbanks, hence it proposes that the pasa mandate be clarified and that it be expanded to include non - banks such as card networks, card associations, retailers, and merchants. regarding the governance framework, the review found that the pasa council was not adequately representative of the rapidly changing payments environment and of the various categories and levels of participation and participants in the national payment system. in order to strengthen the governance framework, it is recommended that the pasa council be composed of a majority of independent non - executive councillors, representative of all the stakeholders in the national payment system and better reflecting our country ’ s demographics. as far as the regulatory framework is concerned, it was found that there were deficiencies relating to the enforcement framework and that the self - regulating model impacted on the objectivity of the payments clearing house ( or pch ) environment. in order to enhance the credibility of our regulatory framework, it is important that compliance be enforced in a consistent, fair and transparent manner, hence it is proposed that an independent compliance enforcement committee be established. this should result in compliance being enforced without fear, favour or prejudice, and should enhance the credibility and integrity of the compliance enforcement process within the national payment system. we further propose that a thorough review of the sro model be undertaken in order to consider its appropriate

was selling shorter - maturity treasury securities and purchasing longer - maturity treasury securities. when the mep expired in december, purchases of $ 45 billion per month in treasury securities were added to the lsap. 29 hancock and passmore ( 2015 ) estimate the impact of the purchase of a 1 percent market share of the agency mbs and u. s. treasury markets to be 2. 0 basis points and 2. 5 basis points, respectively. at current market sizes, these estimates suggest that $ 28 billion of agency mbs purchases or $ 42 billion in u. s. treasury purchases would lower agency mbs yields by 1 basis point. 30 the desk conducts small - value exercises from time to time as a matter of prudent advance planning. they do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future. these exercises include outright sales of agency mbs and coupon swaps of unsettled agency mbs holdings. the most recent coupon swap small - value exercise occurred in october 2016, and the most recent agency mbs sales small - value exercise occurred in late mayearly june 2016. 31 one example of an agency mbs sales program is the u. s. treasury ’ s decision to liquidate its $ 142 billion agency mbs portfolio in 2011 through a combination of about $ 10 billion per month in sales and ongoing principal paydowns. the treasury announced on march 21, 2011, that it would wind down this portfolio 9 / 10 bis central bankers'speeches and sales took place between march 22, 2011, and march 13, 2012. 32 see the “ policy normalization principles and plans ” section of the fomc ’ s rules and authorizations, january 2016. 33 because of improved prepayment characteristics, agency mbs that have been outstanding for a number of years are often more valuable than newly issued securities that are otherwise similar. therefore, these securities tend to trade at a higher market price than tba, making them unsuitable for trading through the tba market. 34 selling soma ’ s agency mbs holdings as specified pools may have a liquidity disadvantage compared to tba. however, this may be mitigated by the fact that a substantial portion of the soma portfolio is in very large securities. owing to the use of cusip aggregation, a process which allows multiple securities to be combined into a single larger security, more