Featured Product

    BoE Explores Demand to Introduce Synchronization to Renewed RTGS

    August 13, 2018

    BoE issued a call for interest from organizations, including fintech firms, to explore the demand for introducing synchronized settlement to the renewed Real-Time Gross Settlement (RTGS) service. Synchronization is referred to as the ability to synchronize cash movements in RTGS with the movement of cash or assets in other systems. BoE believes that this functionality could provide an opportunity to reduce cost and risk, improve efficiency, and support innovative new methods of settlement.

    At the heart of synchronization is the concept of atomic settlement. This means that the transfer of two assets is linked in such that it ensures that the transfer of one asset occurs if and only if the transfer of the other asset also occurs—that is, the settlement is conditional. Therefore, the outcome of settlement is either both parties successfully exchanging those assets or no transfer taking place. BoE is focusing on a model, in which the renewed RTGS service could have the functionality required for a trusted third party (the Synchronization Operator) to connect and offer synchronization services to the market. The Synchronization Operator would have permissions to earmark and order the transfer of funds between participating institutions’ accounts in RTGS, but would not hold an account. The service could be used by multiple Synchronization Operators, and, if implemented, the designed functionality would be neutral regarding what asset transfer the fund movements were being synchronized with.

    BoE is seeking to work with a small group of organizations to further explore the potential for this functionality. BoE is looking to engage with different types of firms—for example, a potential Synchronization Operator or a potential user who can see the benefit in synchronizing the payments they make or facilitate. Interested parties can indicate their preferred level of engagement on the topic. Level 1 includes all interested parties to complete a questionnaire on Key Survey by September 28, 2018. Level 2 of engagement involves inviting some firms to discuss the topic in further detail with BoE, via an introductory session, one-to-one sessions, and roundtable wrap-up. Parties should indicate on the questionnaire whether they are interested in engaging as a Level 2 firm.

     

    Related Links

    Keywords: Europe, UK, PMI, Synchronization, RTGS, Synchronization Operator, BoE

    Related Articles
    News

    FASB Proposes Taxonomy Changes Related to Topics 848 and 470

    FASB proposed taxonomy improvements for the proposed Accounting Standards Update on topic 848 on facilitation of effects of reference rate reform on financial reporting.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Statement on Recalculating Transitional Measures Under Solvency II

    BoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Paper on Market-Implied Systemic Risk and Shadow Capital Adequacy

    BoE published a working paper that presents a forward-looking approach to measure systemic solvency risk.

    September 13, 2019 WebPage Regulatory News
    News

    HKMA Consults on Policy Module on Pillar 2 Supervisory Review Process

    HKMA is consulting on the revised Supervisory Policy Manual module CA-G-5 that sets out the HKMA approach to conducting the supervisory review process under Pillar 2.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Publishes Waiver by Consent of Continuity of Access Rules

    PRA published a new waiver by consent to waive the Continuity of Access requirements contained in the Depositor Protection Part of the PRA Rulebook (DPP).

    September 13, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for September 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    ISDA Guide on Collateral Management Under Smart Derivatives Contracts

    ISDA published the third in a series of legal guidelines for smart derivatives contracts.

    September 12, 2019 WebPage Regulatory News
    News

    ESA Report Highlights Risks of No-Deal Brexit in EU Financial System

    ESAs published a Joint Committee report on risks and vulnerabilities in the EU financial system.

    September 12, 2019 WebPage Regulatory News
    News

    ECB Modifies New Targeted Longer-Term Refinancing Operations

    The Governing Council of ECB decided to modify some of the key parameters of the third series of targeted longer-term refinancing operations (TLTRO III) to preserve favorable bank lending conditions (Decision (EU) 2019/1558).

    September 12, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3819