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

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

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
News

IASB Issues Work Plan and Meeting Updates for May 2019

IASB published an updated work plan, along with the update of its meeting in May 2019.

May 17, 2019 WebPage Regulatory News
News

FCA Publishes Its Business Plan for the Coming Year

FCA published its Business Plan, which sets out the main areas of focus and priorities for 2019/20.

May 17, 2019 WebPage Regulatory News
News

CFTC Proposes to Amend Derivatives Clearing Organization Regulations

CFTC proposed amendments to certain regulations applicable to registered derivatives clearing organizations (DCOs) under Part 30 of the CFTC regulations.

May 16, 2019 WebPage Regulatory News
News

APRA Licenses Societe Generale As Foreign Deposit-Taking Institution

APRA granted Societe Generale a license to operate as a foreign authorized deposit-taking institution under the Banking Act of 1959.

May 16, 2019 WebPage Regulatory News
News

EBA Provides Updates on Its Work on Basel III Impact Assessment in EU

EBA is working to finalize the impact assessment on implementation of Basel III standards, in response to the EC call for advice, which was received on May 04, 2018.

May 16, 2019 WebPage Regulatory News
News

ISDA Publishes Two Consultations on Benchmark Fallbacks

ISDA published two consultations on benchmark fallbacks, the comment periods for which expire on July 12, 2019.

May 16, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3097