BoE: "Synchronisation innovative step for new Real-Time Gross Settlement"

The Bank of England (BoE) is looking to work with a range of organisations, including fintech firms, to explore the demand for implementing synchronised settlement in the renewed Real-Time Gross Settlement service.    During 2018 the Bank engaged with financial institutions, infrastructures, trade bodies, policy makers and fintech firms on the concept of synchronised settlement …

by | August 15, 2018 | bobsguide

The Bank of England (BoE) is looking to work with a range of organisations, including fintech firms, to explore the demand for implementing synchronised settlement in the renewed Real-Time Gross Settlement service. 

 


During 2018 the Bank engaged with financial institutions, infrastructures, trade bodies, policy makers and fintech firms on the concept of synchronised settlement in central bank money.

Through this engagement a number of potential use cases for the functionality were identified, including; housing transactions, corporate transactions and cross-border payments.

At the heart of synchronisation is the concept of ‘atomic settlement’. This means that the transfer of two assets is linked in such a way as to ensure that the transfer of one asset occurs if and only if the transfer of the other asset also occurs. The Bank believes that for certain transaction types, this functionality could reduce cost and risk, improve efficiency, and support innovative new methods of settlement. 

“Exploring potential demand for synchronisation functionality is just one of the ways in which the Bank of England is seeking to support innovation. It also helps us better understand the ways in which our new RTGS service could be used in the future."  Victoria Cleland, Executive Director of Banking, Payments and Financial Resilience at BoE, told bobsguide.

While the Bank is exploring whether it might implement this functionality as part of its renewal of the Real Time Gross Settlement (RTGS) service, third parties would need to create the platforms and products that will make use of it.

Therefore the Bank is now seeking to work with organisations to further explore the demand and potential for this functionality, as well as to understand the design implications for the Bank and the organisations which would interface with the Bank’s systems. 

"This is a fantastic opportunity for us to learn from each other," said Cleland, "I hope many firms continue the conversation with the Bank about future developments in central bank money settlement.”

The Bank would like to hear from organisations that have use cases to share, as well as organisations which might be looking to connect to synchronisation functionality.  To find out more, and to register your interest, please visit the Bank’s website or contact [email protected].

 

 

Categories:

Resources

WorldRemit: a ReconArt success story in remittance

Case Study | Payments WorldRemit: a ReconArt success story in remittance

ReconArt

WorldRemit: a ReconArt success story in remittance

While WorldRemit was growing fast, its existing reconciliation processes needed to scale up accordingly. Due to the high volume of… Continue Reading

View resource
The remittance industry & reconciliation: the ReconArt perspective

Case Study | Payments The remittance industry & reconciliation: the ReconArt perspective

ReconArt

The remittance industry & reconciliation: the ReconArt perspective

The role of each of the payment industry players requires overcoming infrastructure obstacles, penetrating diverse environments and tackling challenges concerning… Continue Reading

View resource
Stepping up Conduct Surveillance: 10 Must-Haves for Success

Brochure / Fact Sheet | Compliance Stepping up Conduct Surveillance: 10 Must-Haves for Success

NICE Actimize

Stepping up Conduct Surveillance: 10 Must-Haves for Success

  In every corner of the world, regulators are aggressively pursuing firms for conduct infractions, ranging from rogue trading to… Continue Reading

View resource
Customer Experience and the Emotional Toll of Fraud

Brochure / Fact Sheet | Anti-fraud/security Customer Experience and the Emotional Toll of Fraud

NICE Actimize

Customer Experience and the Emotional Toll of Fraud

When people experience fraud, their future behaviours are likely permanently changed. As the threat landscape evolves and the competitor landscape… Continue Reading

View resource