A Liquidity Saving Mechanism (LSM) was introduced into the Bank of England’s RTGS infrastructure in April 2013. To evaluate alternative methods of LSM, the Bank run a series of simulations using the FNA Platform. The paper ‘Liquidity Savings in CHAPS - a simulation study’ summarizes the results and finds that aggregate liquidity savings of up to 30% were to be expected. In an ex-post analysis "How has the Liquidity Saving Mechanism reduced banks’ intraday liquidity costs in CHAPS" the collateral savings were quantified as £5B.
Payments Canada is leading a multi-year program to modernize the Canadian Payment system. Initial simulations with FNA revealed that moving to a RTGS arrangement could increase participants’ liquidity needs by more than 40 per cent. But also that advanced Liquidity Saving Mechanisms could bring this substantially down.