This paper investigates systemic risk in multilateral netting payments systems. A four-period model is constructed to investigate the effects of random liquidity shocks. There are three different types of agents in this model: banks, the payments system operator, and the central bank. Banks pay...

Wholesale payments and settlement systems in G-10 countries have undergone significant change in recent years. Notably, central banks have sought to increase the safety and reliability of these systems. In this article, William R. Emmons describes two approaches that have been pursued....