Central banks are under constant pressure to make their monetary systems safer and more efficient. Liquidity optimisation is a key strategy for this but understanding which is the right mechanism for implementing this strategy is complicated. The FNA Platform simplifies this problem, helping users to understand the effects on not only the bank itself, but also on the member banks.
The FNA Platform simulates any global FMI transaction settlement scheme including payments. Existing or new liquidity optimisations can be modelled and compared enabling a more focused understanding of a settlement scheme prior to implementation.
Financial and economic systems are highly dependent on critical Financial Market Infrastructures (FMIs). These FMIs are interconnected via common members, service providers and IT systems. A disruption in one has the capability to escalate into a world wide crisis. Threats such as cyber crime, cyber terrorism and state sponsored cyber attacks are increasingly prevalent and FMIs need to detect, to become more resilient and recover faster from attacks.
The FNA Platform enables FMIs, central banks and critical infrastructure protection programs to accurately map interdependencies, detect anomalous transactions, simulate attacks and to develop remediation scenarios.
We do not operate in a siloed world. All market participants are intrinsically linked and a small decision by one can have far-reaching consequences for the market. How can participants begin to understand the repercussions of decisions? or the eventual impact of market events?
The FNA Platform gives users the ability to explore the interconnectedness in large data sets and to uncover previously unknown patterns and correlations. Automated stress tests including statistical or entity failure can be executed to better understand the riskiness of the system and apply appropriate recovery algorithms and remedial operational processes.
Identifying Risk Concentrations
Understanding where risks are concentrated is key to ensuring regulatory compliance and systemic stability. But how can FMIs begin to understand how their counterparties are connected and how that affects risk concentrations?
Network analytics and automatic visualisations within the Platform enable easy identification of risk concentrations and the associated systemic implications due to the interconnectedness of entities.
Now, more than ever, concerns around money laundering, criminal financing and market moving are paramount. However in today’s interconnected yet distributed world, how can FMIs identify problems before they happen? How can they move from reactive fire-fighting to positive action?
The FNA Platform enables operations teams to identify emerging issues in real-time so that they can take action prior to any negative impacts. Built in machine learning algorithms, enable transaction patterns to be learned and accurately predicted, enabling detection of anomalous transaction volumes.