Rafael Lima Sakr’s Post

Project Meridian FX: Joint Project by the Eurosystem and London Centres, and the Bank of England, to Test Synchronised Settlement in FX "The project will provide insights on how operators of real-time gross settlement (RTGS) systems could enable interoperability with new payments technologies, such as distributed ledger technology (DLT). It will highlight the opportunities that the synchronisation model could unlock, including more innovative and efficient settlement services for a wider range of assets that are settled in central bank money." https://lnkd.in/e8bNrBHp Bank for International Settlements – BIS #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

“The project will provide insights on how operators of real-time gross settlement (RTGS) systems could enable interoperability with new payments technologies, such as distributed ledger technology (DLT). It will highlight the opportunities that the synchronisation model could unlock, including more innovative and efficient settlement services for a wider range of assets that are settled in central bank money. By focusing on FX transactions, the project could also offer potential solutions to long-standing issues in settling FX trades, such as the costs, risks and time involved in cross-border transaction”

Bank for International Settlements – BIS - Project Meridian FX: joint project by the Eurosystem and London Centres, and the Bank of England, to test synchronised settlement in FX Source: https://lnkd.in/gMtYZdNq #crossborder #jointprojext #europe #london #boe #ecb #settlement #fx Highlights: The Eurosystem and London Centres of the BIS Innovation Hub, together with the Bank of England, have launched Project Meridian FX, to build on the findings of Project Meridian by focusing on foreign exchange (FX) transactions. The starting point is the concept of the "synchronisation operator" (SO) developed in the first Meridian project. Meridian FX will test the usability of the SO for different types of assets and technologies. It will also explore additional features that could form part of an SO's offering, such as those that could help reduce the liquidity needs of participants. The project will provide insights on how operators of real-time gross settlement (RTGS) systems could enable interoperability with new payments technologies, such as distributed ledger technology (DLT). It will highlight the opportunities that the synchronisation model could unlock, including more innovative and efficient settlement services for a wider range of assets that are settled in central bank money. By focusing on FX transactions, the project could also offer potential solutions to long-standing issues in settling FX trades, such as the costs, risks and time involved in cross-border transactions. To achieve its objectives, Meridian FX will build on the technology behind the SO, allowing it to connect two RTGS systems based in different jurisdictions. Meridian FX will also connect an RTGS system with a DLT-based settlement platform, testing how the SO could support interoperability between existing and new ledger technologies. The aim in both scenarios will be for the SO to successfully orchestrate the settlement of a payment versus payment (PvP) FX transaction. The experiments will take place towards the end of 2024. They will involve connecting Meridian FX's SO to the three solutions being explored as part of the Eurosystem's broader exploratory work on wholesale settlement: 1. the Trigger Solution developed by Deutsche Bundesbank 2. the TIPS Hash-Link developed by Banca d'Italia 3. the DL3S DLT Interoperability Solution developed by the Banque de France The project aims to report on its findings in Spring 2025.

Nice article from Richard Estes on why some banks still have bifurcated #FX pricing systems, how they can fix this, and the practical benefits of doing so: https://lnkd.in/gKBJdxPs He sums it up well: "Regional banks that have not properly invested in an e-FX infrastructure and integrated in into all of their external and internal client FX trade sources need to realize that e-FX is not simply for the top end of the market" #FXtrading #FinTech #Banking

2025 | SWIFT Digital Asset Trials Banks in North America, Europe and Asia are preparing to participate in trials involving digital assets by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The trials aim to explore how the banking network can provide financial institutions with unified access to “multiple digital asset classes and currencies.” “Initial use cases will focus on payments, foreign exchange, securities and trade to enable multi-ledger delivery-versus-payment and payment-versus-payment transactions,” SWIFT announced on Oct. 3 that it will begin digital asset trials on its network in 2025. The trials will involve experiments with transactions that include multiple digital currencies and assets

#DLT | #LiquidityManagement : Intraday liquidity buffers cost banks USD hundreds of millions per year — with the right digital technology set up in the right way, these costs — and associated risks — can be managed down and even removed at scale. Current wholesale payment infrastructures labor under widespread inefficiencies due to fragmented systems, delayed settlement processes, reliance on intermediaries, and outdated technologies. These factors contribute to higher operational friction, increased settlement risk, and longer processing times, which are significantly costly for banks and many across the industry. Furthermore, the lack of real-time capabilities and absence of standardization and interoperability across different systems and jurisdictions hampers control and efficiency across Post Trade, highlighting further the requirement and opportunity to deliver much-needed modernization and optimization. To navigate and unravel these multifaceted dynamics and start preparing for the potential of global T+0 (same day) settlement, Investment Banks and aligned Functions now need to progress their application of Distributed Ledger Technology (DLT), primarily in ways to optimize and mitigate usage of intraday liquidity buffers, and particularly through embracing Payment versus Payment (PvP) settlement. DLT provides a transparent and decentralized ledger for post-trade settlement, reducing counterparty risks and enhancing control. #Smartcontracts — logic-driven software on DLT networks — can be programmed to automate and enforce counterparty obligations, and ensure accurate and timely settlement. This increased visibility and automation contributes to more controllable and intelligently orchestrated settlement: DLT-based systems can, at scale, minimize errors, disputes, the need for manual interventions, and perhaps most importantly, aggregate, net, sequence, and instruct final multilateral settlement to ensure optimal use of increasingly expensive liquidity.

Clearstream, DekaBank Deutsche Girozentrale and DZ BANK AG successfully issue #tokenisedbonds on #DLT at #ECB trials DLT Bond Issuance: Clearstream, DekaBank, and DZ Bank have successfully issued two tokenised €5-million bonds using #distributedledgertechnology (#DLT). ECB Trials: The #issuances were part of the European Central Bank (#ECB) trials to explore #DLT’s potential for #settling #transactions in #centralbankmoney. D7 Platform: The entire process was conducted on Deutsche Börse’s D7 #DLTPlatform, including #issuance, #distribution, #settlement, and #lifecyclemanagement. Innovative Milestone: This marks the first #institutionalgrade #issuances in #Germany using #DLT with #wholesale #digitalcentralbankmoney, aiming to enhance #safety, #liquidity, and #efficiency in the #securities #market.

Great article from Paul Golden in Euromoney on how Single-dealer platforms are back in the game. Many have known how to bring value beyond FX price ticking by adding key features around reporting, payments, liquidity management. Thanks for the quoting. NEO (getneo.com) #fintech #B2B

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Swissquote adds fractional shares and crypto trading - FX News Group: Swissquote adds fractional shares and crypto trading ... Leading Swiss online banking and trading provider Swissquote (SWX:SQN) has announced the launch ...