The Payments and Post-trade industries are undergoing unprecedented levels of change. New technologies, digital currencies, disruptors and liquidity requirements are putting financial systems under further pressure and costing the industry hundreds of millions a year.
FMIs (Financial Market Infrastructures) and their members need to understand the impact of these changes before they are made, in order to design, build and maintain optimal payment systems.
FNA’s solutions cover the full FMI lifecycle as it responds to the evolving regulatory environment, modernization programmes and new market entrants such as CBDCs. The solutions support each phase of this journey from research, regulatory approval and design & build to validation, stress testing and monitoring.
The Payment Simulation solution models any payment or settlement system, enabling FMIs to rapidly test new technologies, features, changes or stresses to their systems without writing a single line of code. This leads to better system design, reduced system development costs, increased speed of deployment, member engagement and accelerated acceptance and smoother regulatory approval.
FNA’s experience within FMIs is unparalleled, having built simulators and developed systems for almost 25 years for clients such as Fnality, Payments Canada and Bank of England.
The regulatory and supervisory environment following the 2008 crisis significantly raised the standards for effective liquidity management. Under the Committee on Payment and Settlement Systems (CPSS) and International Organization of Securities Commissions (IOSCO) principles for financial market infrastructures (PFMIs), the requirements for routine stress testing can be costly and time-consuming.
FNA’s Payment System Stress Testing enables FMIs to comply with these standards at reduced cost and time resources. The solution helps FMIs to better understand both the operational and financial stability implications of participants’ stresses on other participants in the system. In addition, FMIs can determine how resilient their system is on any given day and identify individual participants which might face liquidity or solvency issues in the near future.
Liquidity risks can proliferate rapidly into wider, more damaging issues. Start monitoring and testing straight away, so that potential undetected problems can be addressed before they escalate.
The Payment Simulation solution can be configured using a wide range of features, including: