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

APRA Releases Minor Changes to Reporting Standards on SA-CCR for Banks

APRA released minor changes to the three reporting standards for the standardized approach for measuring counterparty credit risk exposures (SA-CCR).

May 22, 2019 WebPage Regulatory News
News

APRA on Industry Self-Assessments into Governance and Accountability

APRA released an information paper analyzing the self-assessments performed by 36 of the country’s largest banks, insurers, and superannuation licensees in response to the final report on the Prudential Inquiry into the Commonwealth Bank of Australia (CBA).

May 22, 2019 WebPage Regulatory News
News

APRA Proposes to Amend Guidance on Residential Mortgage Lending

APRA is consulting on revisions to the prudential practice guide APG 223 on residential mortgage lending in Australia.

May 21, 2019 WebPage Regulatory News
News

IASB Proposes Improvements to IFRS 9 and IFRS 16

IASB published the exposure draft ED 2019/2 that proposes amendments to four IFRS standards, including IFRS 9 on Financial Instruments and IFRS 16 on Leases.

May 21, 2019 WebPage Regulatory News
News

ESAs Amend Technical Standards on Mapping of ECAIs Under CRR

ESAs published a second amendment to the implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital Requirements Regulation (CRR).

May 20, 2019 WebPage Regulatory News
News

OCC Consults on Information Collection for Home Mortgage Disclosures

OCC is soliciting comment on the revision of the information collection titled “Regulation C—Home Mortgage Disclosure.” OCC also notes that it has sent the collection to OMB for review.

May 20, 2019 WebPage Regulatory News
News

OCC Report Examines Key Risks for Federal Banking System

OCC published the Seminannual Risk Perspective for Spring 2019.

May 20, 2019 WebPage Regulatory News
News

ESMA Updates the List of Guidelines Under Its Mandate in May 2019

ESMA updated the overview of guidelines published under its mandate, with information and links to the related documents.

May 20, 2019 WebPage Regulatory News
News

EIOPA Updates Q&A on Regulations in May 2019

EIOPA published additional questions and answers (Q&A) on guidelines, directives, and regulations applicable to insurers in Europe.

May 17, 2019 WebPage Regulatory News
News

FSB Publishes Update on Meeting of RCG for Americas

FSB published a summary of the meeting of its Regional Consultative Group (RCG) in Americas.

May 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3108