Payments systems play a fundamental role in an economy by providing the mechanisms through which payments arising from … transactions can be settled. The existing literature on the economics of payments systems is large but loosely organized, in that …

system and hence how efficient the system is in settling payments. Understanding the structure of the underlying network of …

-liquidation cost because they must sell their bonds before the scheduled times of their cash payments. This cost provides incentive for …

-value payments results in later payment submission and hence settlement; as an important source of intraday liquidity, a higher CDSX … major contributors to the earlier settlement of LVTS payments. …

institutions use daily to transmit thousands of payments worth several billions of dollars. The LVTS is different than real … net basis at the end of the day. Furthermore, LVTS payments are secured by a collateral pool that mutualizes losses across … collateralizing LVTS payments, similar to an RTGS. An important caveat to consider, however, is that the simulations do not take into …