Launch of the Pakistan Real-Time Interbank Settlement Mechanism Plus (PRISM+)

Annexure to DI&SD Circular No. 1 of 2025 June 11, 2025 Page 1 of 2 Features of PRISM+

1. The PRISM+ offers customizable dashboards, alerts, query tools, and downloadable settlement position statements.
2. The system supports the following functionalities for efficient transaction execution and monitoring:  High-value interbank funds transfers with immediate settlement finality.  Scheduling of future-dated payments, allowing institutions to manage liquidity with precision.  Transaction queuing and prioritization, supporting time-critical payment execution.  Real-time monitoring of balances, payment queues, and settlement positions.  Automated billing and fee calculation, with downloadable invoices and billing logs.
3. The Central Securities Depository (CSD) module of the system provides the following functionalities:  Auction Module for conducting primary market auctions of government securities, enabling: o Submission of competitive and non-competitive bids. o Real-time bid validation and allocation.  Secondary Market Trading Module, enabling: o Submission of trade instructions. o Matching and settlement of securities transactions between counterparties.  Collateral Management System, supporting: o Mark-to-Market (M2M) valuation of pledged securities. o Application of regulatory haircuts based on asset risk classification. o Tracking of available, pledged, and eligible collateral.  Open Market Operations (OMO) Module, enabling: o Liquidity injection and mop-up operations. o Allocation of securities against central bank repo/reverse repo transactions. o Settlement of OMO transactions.
4. The system also ensures:  End-to-end audit trail for each transaction,  Role-based access control to strengthen the security, and  Real-time alerts for settlement failures. Operating Mechanism Liquidity Saving Mechanism (LSM) Queues To enhance liquidity efficiency and reduce payment gridlocks, the new system introduces multiple settlement queues in addition to the main queue. Transactions will now be routed based on their priority and batch frequency. Participants are expected to utilize LSM Queues 1 and 2 for lower￾priority payments, which will be settled in batches with gridlock resolution, while high-priority

Annexure to DI&SD Circular No. 1 of 2025 June 11, 2025 Page 2 of 2 payments continue through the main queue. Participants are advised to utilize this functionality to ensure optimal liquidity management and system-wide settlement efficiency. Reserve Placement and Earmarking Participants now have the ability to earmark reserves for specific use cases e.g. 1Link, Raast, NIFT and NCCPL through configurable reserve pools. All participants must activate and manage these reserve settings within their settlement accounts to ensure that critical transactions do not compete with general liquidity and that settlement efficiency is preserved across all RTGS functions. ILF via CSD Nominated Pools The new system enables automatic Intraday Liquidity Facility (ILF) provisioning through nominated securities in the CSD. Participants will pre-assign eligible securities to the ILF pool to ensure liquidity access. This feature is critical for ancillary settlement systems, trade execution, and real-time liquidity shortfalls. Additional Functionalities in Scope The new RTGS platform includes enhancements such as extended operating hours, real-time payment cancellation, return message support (Request for Return/Return), and optional cash deposit/withdrawal from Karachi Office. Participants must familiarize themselves with these improvements and update their internal processes accordingly to benefit from the platform’s expanded operational scope and flexibility.