The Bank of England is preparing to replace its 26-year-old core settlement engine, but adapting to this new landscape will require fundamental behavioral shifts from participating banks. In a recent article for The Stack, FNA Founder & CEO Kimmo Soramäki explains why system-wide simulations are essential for coordinating these changes and optimizing liquidity.

To ensure a smooth transition to its new RTGS system, Lynx, Payments Canada partnered with FNA to build a comprehensive Digital Twin. By simulating various system configurations and participant behaviors, the project successfully optimized liquidity savings and fully prepared the market for launch.

UK Finance partnered with FNA to optimize liquidity and reduce operational risks within the £360 billion-per-day CHAPS payment system. By leveraging FNA’s simulation technology and Bipartite Payment Reduction (BPR) algorithm, they successfully modeled a pre-open netting cycle to compress early payment obligations.

Fnality partnered with FNA to develop and simulate a cutting-edge, peer-to-peer payment system underpinned by Distributed Ledger Technology (DLT). By modelling complex real-time gross settlement (RTGS) scenarios, the simulations proved to regulators that the system mitigates systemic risk without elevating liquidity constraints.

Traditional geographic maps are no longer sufficient to navigate the complex, borderless threats of the modern global economy. To manage these interconnected systems, "Financial Cartography" proposes mapping the hidden networks of global trade, financial markets, and critical infrastructures to visualize systemic risks and empower rapid, data-driven decision-making.The Digital Operational Resilience Act (DORA) expands European financial regulation to explicitly cover third-party ICT and cloud service providers. By mapping these critical technological interdependencies, regulators and institutions can better visualize, simulate, and mitigate the severe systemic risks posed by cloud concentration.