Predictive Analytics For Financial Infrastructures
- Monitor system participants with comprehensive network maps and risk metrics, including FNA’s SinkRank™ and metrics proposed by BIS/BCBS.
- Identify emerging liquidity and operational risks with statistical and visual detection of outliers.
- Build intuition with fast interactive data exploration powered by algorithms that filter signal from noise.
- Communicate risks with a new visual language understood by quantitative analysts and senior management alike.
- Quickly carry out predictive stress tests and explore the results visually or numerically.
- Automate the analysis into real-time dashboards for monitoring and oversight of the system
- Financial Market Infrastructures (FMIs)
- Central Banks and Regulators
Simulations of Alternative Liquidity Saving Mechanisms
Helps payment system operations in choosing which to implement
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 FNA PaymentSimulator. 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 ex-post analysis, these savings have also mainly materialized.