• View the Talks
• 39 min
  1. Large value payment systems and the role of regulation

  • Mr. Mark Manning
• 45 min
  2. Clearing and settlement systems and the role of regulation

  • Prof. Alistair Milne
• 38 min
  3. The economics of retail payments: theory and practice

  • Mr. Sujit Chakravorti
• 49 min
  4. Continuous linked settlement (CLS)

  • Mr. Morten Bech
  • Mr. Antoine Martin
• 36 min
  5. Operational outages in large value payment systems

  • Dr. David Mills
• 44 min
  6. Interaction between private and public systems

  • Mr. John Trundle
• 40 min
  7. Financial crises, payment system risk and oversight

  • Mr. Sean O'Connor
• 27 min
  8. The interdependencies of payment and settlement systems

  • Ms. Daniela Russo
• 48 min
  9. A review of related empirical research on retail payments

  • Dr. Jonathan Zinman
• 52 min
  10. Simulation as a tool in studying payment and settlement systems

  • Mr. Harry Leinonen

Printable Handouts

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Navigable Slide Index

1. Introduction
2. About the speaker
3. Outline
4. Advantages of simulation studies
5. System complexity
6. Network structure and interdependencies
7. Payment systems and their participants
8. Hidden risks and other characteristics
9. Robustness towards shocks
10. Pretesting policy changes/decisions
11. General applicability of simulation models
12. Summary of advantages
13. Characteristics of payment systems
14. 3 pure types of payment systems
15. System type and cost structures
16. All dimensions carry direct or indirect costs
17. Mixed systems balance cost factors
18. The effect of participants' decisions
19. Gridlock resolution algorithms
20. Risk mitigation and liquidity drainage limits
21. System linkages and liquidity bridges
22. Possible multisystem structures
23. Back-up facilities
24. Summary of system characteristics
25. Simulator setups
26. How true to nature?
27. Input data starting points
28. Categorisation of input data
29. Simulated transaction flows
30. Agent-based payment behavioural modelling
31. Transaction driven simulations
32. A typical simulation project structure
33. Simulations are only simulations
34. Summary of simulation setups
35. Typical simulation studies
36. Available payment & settlement simulation studies
37. Typical oversight studies
38. Example - Swiss Interbank Clearing
39. Typical policy studies
40. Example - risks and gains in CHAPS (UK)
41. Typical operational studies
42. Example - gridlock resolution in RTGS systems
43. Typical basic research studies
44. Example - impact of a hybrid receipt in CHAPS
45. Summary of typical simulation studies
46. Development visions
47. Understanding payment processes better
48. Improved behavioural modelling
49. Deeper knowledge of critical risks
50. Expanded simulation models
51. Summary of development visions
52. Further reading
53. Thank you
54. Oversight studies with publically available results
55. Policy studies with publically available results
56. Operational studies with publically available results
57. Research studies with publically available results

Topics Covered

• Modern payment systems are highly complex with numerous interdependencies, hidden risks and other characteristics
• Simulation techniques have proved to be a good tool for analyzing many dimensions of payment and settlement systems and networks which are outside the reach of traditional calculus
• The most common payment system simulation setups are presented together with concrete examples

Links

Series:

• Effective Oversight of Payment and Settlement Systems

Categories:

• Finance, Accounting & Economics

Talk Citation

Publication History

• Published on March 31, 2010