Control your payment outflow in order to proactively manage your intraday liquidity

Major changes have been kicked off in Europe regarding the processing of high-value payments and the management of intraday liquidity. Market infrastructure projects from the European Central Bank (T2/T2S Consolidation, Eurosystem Collateral Management System) or Bank of England (RTGS Renewal programme) will deeply modify operating models. At the same time, these changes offer financial institutions the opportunity to modernize their infrastructures with regard to increasing regulatory pressure on intraday liquidity risks.

CRISTAL Proactive Liquidity Manager (PLM) stands right in the middle of your liquidity forecast and settlement flows. It performs real-time reconciliation of cash flow forecast, bookings, instructions and more, with the external view captured from application-to-application exchanges and reporting from the various partners and settlement systems. It fully supports the ISO20022 standard for instructions and reporting that is the basis for all market infrastructure projects. CRISTAL customisable dashboard provides you with an accurate view of your intraday liquidity and CRISTAL data warehouse provides all statistics to better anticipate your intraday liquidity profile.

Global intraday liquidity management

Combined with CRISTAL TARGET2-Securities (T2S) which includes management of collateral and liquidity arising from securities settlement, CRISTAL PLM provides real-time liquidity management at global level.

CRISTAL PLM

CRISTAL collects information and transactions from all internal areas managing securities trading and custody, capital market transactions and all payment activities (high-value and cross-border payments, Instant Payments, low value payments). CRISTAL connects to all external partners and settlement systems where the bank has liquidity pools in order to control payment outflow and manage liquidity held with these. Then CRISTAL connects through real-time application-to-application links to Clearers and Custodians, Central Securities Depositaries (CSD) and International Central Securities Depositaries (iCSD), Central Counter Party clearing houses (CCP), Real-Time Gross Settlement systems (RTGS) such as TARGET2 and CHAPS as well as the high-value Real-Time Gross Nett Settlement system EURO1, National Central Banks Collateral Management Systems (NCB CMS), Pan-European Automated Clearing Houses (PEACH) and Instant Payment Clearing and Settlement Mechanisms (IP CSM).

Functionalities

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  • Global and detailed liquidity forecast
  • Real-time position monitoring
  • Control and scheduling of payment outflow
  • Settlement and counterparty risk management
  • Real-time reconciliation of actual cash flow with expected activities
  • Detection of liquidity shortage and analysis of liquidity consumption
  • Intraday¬†distribution of liquidity across market infrastructures and accounts
  • Management of minimum reserve requirements and standing facilities
  • Repository of interbank cash flow exchanges as a basis for computation of regulatory intraday liquidity indicators

Value for our clients

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  • Secure your high value and cross-border payment processing
  • Implement and monitor your payment scheduling policy
  • Fine-tune your intraday position
  • Reduce your liquidity buffer and save 1/3 of your collateral required for intraday credit with central banks
  • Monitor intraday liquidity risk with regards to Basel regulatory requirements
  • Address impacts of regulatory changes and market infrastructure projects
  • Secure your high-value payments migration to ISO20022

Marco Urbani, Head of Cross-Border Payments and Settlement Systems, SGS BP

By selecting a proven up-to-date software package, Banco BPM has replaced legacy systems with a liquidity management solution which better match the market requirements and has ensured long term compliance with regulatory requirements and state-of-the-art business practices.