A practical map of netting, RTGS, securities settlement, and liquidity arrangements.
8 posts
More than twenty euro-area CSDs never merged, yet they share one settlement engine in T2S. Following a cross-border bond trade, this article explains T2S accounts, the DvP process, cross-CSD realignment and auto-collateralisation, how T2S divides work with T2, and how it compares with Bond Connect and Pontes.
Not every RTGS payment settles instantly. Using bilateral and multilateral examples, this article explains how payments are queued, scheduled and offset when funds run short, and draws on CHAPS, T2 and Hong Kong's CHATS to show what liquidity-saving mechanisms can and cannot do.
This article analyzes the financial market infrastructures behind Bond Connect's Southbound and Northbound links, detailing nominee holding, multi-tier custody, and CMU-CIPS DvP mechanisms.
This article explains how CCPs reshape counterparty risk through novation, multilateral netting, margin and default management, and examines whether atomic settlement can replace a CCP.
Starting from the extreme scenario of bank insolvency following an interbank transfer, this article dissects the core differences between irrevocability and settlement finality, explains settlement unwind chains and zero-hour rule conflicts, and compares statutory carve-outs across major global financial centers.
Starting from the two payment legs of an FX trade, this article breaks down principal risk and the Herstatt risk window in foreign exchange settlement, explains how PvP and CLS multilateral netting operate, and explores the evolution toward next-generation multicurrency infrastructure like Project Agorá.
Starting from a 100 million yuan bond trade, this article explains the securities leg, cash leg, principal risk, and DvP Models 1/2/3, and explores the relationship between Settlement Finality and tokenized settlement.
Starting with two-way payments between Bank A and Bank B, this article explains how RTGS and DNS balance settlement finality, intraday liquidity, and risk control, and compares hybrid designs across major payment systems.