glossary

Banking market infrastructure

Services for Banking Market Infrastructures

Due to the explosive growth in the value of trading, financial institutions and regulators are looking to seek better control of settlement risk.

In response, industry associations and central banks have developed the following banking market infrastructure systems to eliminate settlement risk.

  • High value interbank payments (RTGS - Real Time Gross Settlement systems)
  • Multi-currency cash payments (CLS – Continuous Link Settlement system)
  • Retail payments Market infrastructure

The criticality and the multilateral aspect of the payments exchange has positioned SWIFT as a natural trusted third party that offers secure, reliable and proven messaging services dedicated to the financial industry.  SWIFT is increasingly being used by financial institutions to fill that role.

In addition, by re-using their existing SWIFT messaging services for retail payments transfer, banks can reduce the number of channels and reach efficiently retail payments clearing platforms.