By Ashwin Shenoy, VP sales, CEMEA, PayMate As you start reading this piece, you are probably thinking ‘what’s a payment article doing at a time when the whole world is grappling with the coronavirus scare?’. We all are in a state of lockdown, exercising social distancing and restraint, and governments all over are doing the best they can to beat the situation at hand. And like always, we, the human race will come out on top. But what after? A pandemic like coronavirus shakes the entire...

A senior European Commission official has poured cold water on industry hopes of a delay to the next phase of the initial margin requirement for non-cleared derivatives on the back of disruption caused by the coronavirus. Patrick Pearson, head of the financial market infrastructure and derivatives unit at the EC, told Risk.net in an email that the commission has no intention of postponing the September deadline and that it has not heard any concerns from the industry regarding preparations. He

Over the past five years instant payment schemes, otherwise known as real-time or faster payment schemes, have rapidly developed across the world – catching the attention of banks, consumers and companies along the way. This trend is set to continue. These schemes, which facilitate the transfer of money within seconds, can be a transformative proposition for corporates. Sending funds instantly removes cash-flow latency, improves the customer experience, and brings the industry one step closer...

The market remains at odds over the dissemination of unique transaction identifiers (UTIs) for Securities Financing Transactions Reporting (SFTR). Some banks are pushing for their counterparties to be connected to specific UTI exchange platforms to consume UTIs directly. But because of the work needed to connect, many firms are choosing not to. “With regards to UTI exchange. This is the biggest issue bar none with SFTR as banks of all shapes and sizes simply cannot build SFTP connections for...

Banks are creating detours in their core systems to be able to calculate the Secured Overnight Financing Rate (Sofr) rather than trying to replace the entire system before the end of 2021. However, these complementary systems can come with additional risks, say bankers. There is also uncertainty around the level of time required to implement, test, and run systems to be ready for the cessation of Libor - answers from market participants vary between 12, 18, and 24 months. “You can put in...