Yang, Jing; Markose, Sheri; Alentorn, Amadeo - Society for Computational Economics - SCE - 2005
settlement risk in RTGS comes with excessive demands for liquidity on banks. This could lead them to adopt various delaying … tactics to minimise liquidity needs with free-riding and other ‘bad’ equilibria as potential outcomes. The introduction of … hybrid systems with real-time netting is viewed as a means by which liquidity costs can be reduced while settlement risk is …