Working Paper
Risk and concentration in payment and securities settlement systems
Mills, David C.; Nesmith, Travis D. (2007)
Large value payment and securities settlement systems are important components of an economy's financial system. Many such systems are operated by central banks and are liquidity intensive. Central banks often provide inexpensive liquidity to facilitate settlement. This leads to a number of policy questions about the provision of such liquidity. To answer these questions, central banks need to understand what factors influence the timing of settlement. This paper offers a model to better understand intraday patterns of settlement and identifies three factors that influence the timing of ...
Finance and Economics Discussion Series , Paper 2007-62

Journal Article
Settlement liquidity and monetary policy implementation—lessons from the financial crisis
Bech, Morten L.; McAndrews, James J.; Martin, Antoine (2012-03)
The U.S. dollar clearing and settlement system received little attention during the recent financial crisis, mainly because it performed reliably, processing record volumes and values of trades made in stressed financial markets. This article shows how Federal Reserve policy measures aimed at providing liquidity and stability to the financial system during and after the crisis had a major impact on settlement liquidity and thus on the efficiency of clearing and settlement system activity. The measures led to a substantial decrease in daylight overdrafts extended by the Federal Reserve and a ...
Economic Policy Review , Volume 18 , Issue Mar , Pages 3-20

Speech
Reforming the OTC derivatives market
Dudley, William (2012)
Remarks at the Harvard Law School's Symposium on Building the Financial System of the 21st Century, Armonk, New York.
Speech , Paper 77

Speech
Five years since the crisis: where are we now?
Dahlgren, Sarah J. (2013)
Remarks at the Institute of International Bankers' Seminar on Risk Management and Regulatory/Examinations Compliance Issues.
Speech , Paper 120

Journal Article
The introduction of the TMPG fails charge for U.S. Treasury securities
Garbade, Kenneth D.; Wolgemuth, Jennifer; Logan, Lorie; Keane, Frank M.; Stokes, Amanda (2010-10)
The TMPG fails charge for U.S. Treasury securities provides that a buyer of Treasury securities can claim monetary compensation from the seller if the seller fails to deliver the securities on a timely basis. The charge was introduced in May 2009 and replaced an existing market convention of simply postponing?without any explicit penalty and at an unchanged invoice price?a seller?s obligation to deliver Treasury securities if the seller fails to deliver the securities on a scheduled settlement date. This article explains how a proliferation of settlement fails following the insolvency of ...
Economic Policy Review , Volume 16 , Issue Oct , Pages 45-71