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Dear
Delegate,
A reliable and efficient payment system is crucial to the
orderly operation of a nation's banking and financial system,
its real economy and to the reputation of the central bank.
With the realisation of far-reaching payment initiatives at
the supra-national level, technological innovation and the
growing political recognition of the necessity of well-designed
payment systems, this training course/seminar focuses on the
duties of central banks in developing and overseeing payment
systems, in developed countries as well as emerging markets.
The five-day programme addresses the revolution in international
payment systems, the progress of cross-border initiatives,
the conversion to electronic payments and the emergence of
e-money. The course/seminar will challenge delegates to question
whether they have fully considered the practical, legal and
regulatory implications for the management of their payment
systems in both national and international contexts.
Operational since last September, CLS Bank International is
now a reality in international settlement of foreign exchange
and settling on average over $600 billion a day. However,
the limited, but expanding, number of currencies and participants
will require many banks to operate parallel settlement arrangements
for their foreign exchange trades - what will be the consequences
for those within and outside the system? What has been the
market reaction and how has it altered banks' behaviour?
The IMF and World Bank's incorporation of the Core Principles
into the Financial Sector Assessment Programme has raised
the standards for payment systems. How has the assessment
developed and what has been the experience of those involved?
Cross-border payment initiatives at a regional level present
new challenges for central banks - what are the key issues
in linking financial infrastructures and how can the necessary
technological developments be implemented and operational
risk managed that the initiatives require? Participants will
have frequent opportunities to learn from expert speakers
and from each other, through discussions of their own national
experiences and case studies.
The independent standpoint of the conference sponsor, Central
Banking Publications Ltd, will naturally encourage free
discussion of sensitive issues and potentially allows a broader
coverage of issues than courses and conferences organised
by official institutions, or by commercial conference companies.
We look forward to welcoming you to Cambridge on September
7th.
Yours
sincerely,
William Clarke CBE PhD
Chairman, Central Banking Publications
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:::Sunday
7th SEPTEMBER
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DEVELOPING
AN OVERALL FRAMEWORK FOR RISK MEASUREMENT AND MANAGEMENT
Chairman:
Peter Nicholl, Governor, Central Bank of Bosnia and
Herzegovina
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Pressures
on central banks in developing their countries' payment
systems
Peter
Allsopp
Allsopp Consultancy Services, former Head of Payment
Systems, Bank of England
Central
banks face an expanding series of complex challenges
related to payment systems and their development. They
must trade off diverse public policy objectives, balancing
safety and cost-effectiveness. To ensure that systems
work, or that necessary work is enacted, the central
bank must take a lead role. In this opening session
delegates will be expected to discuss individual payment
systems and the particular challenges countries face
in their operation.
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:::Monday
8th SEPTEMBER
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INTERNATIONAL
STANDARDS FOR KEY PAYMENT SYSTEMS
Chairman:
Peter Allsopp, Allsopp Consultancy Services, former
Head of Payment Systems, Bank of England
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How
to implement the core principles in the IMF's FSAP
Udaibir
S. Das
Deputy Chief in the Financial System Surveillance
Division, IMF
According
to IMF assessments of systematically important payment
systems (SIPS) many countries are vulnerable to internal
or external shocks. How can central banks improve and
strengthen critical payments infrastructure? What are
the main priorities for central banks seeking to improve
the robustness and legal basis of the payment systems
in their jurisdictions? The speaker will present developments
in the assessment of countries' compliance with the
Core Principles (CPSIPS), within the context of the
IMF's and the World Bank's Financial Sector Assessment
Programme (FSAP).
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FSAP:
the private sector experience
Michael
Lewis
APACS
Implementing
international standards is essential for the establishment
of a modern and reliable payment system, yet the reform
of existing systems must be paced realistically. How
can central banks establish a timetable to move towards
meeting principles and construct a dialogue with the
private sector to achieve this? This session will discuss
the need to prioritise elements of reform. Where should
the regulatory boundaries with the private sector be
drawn? Michael Lewis presents a view from the private
sector
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THE
NEW STANDARD FOR FOREX SETTLEMENT
CProgress
report on CLS
Nan Noonan
Executive Vice-President, CLS Bank International
CLS
Bank International is now a reality in foreign exchange
settlement: less than six months after going on-line
in September, CLS Bank settled trades with a gross value
of over $1 trillion in one day. Nan Noonan presents
an update on the performance of CLS Bank so far, the
introduction of new settlement currencies and the increasing
global reach of the bank.
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CLS:
the market reaction
Alastair Wilson
Foreign Exchange Division, Bank of England (invited)
The
average daily value settled by CLS Bank in February,
over US$600 billion, is equivalent to just under half
the value of foreign exchange transactions undertaken
by major banks. How has the market reacted to the introduction
of CLS? What difference has it made to banks' operating
procedures? This session will address the important
market trends observed, from a central bank's perspective,
in relation to the first year of CLS's functioning
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CLS
and central banks
Peter
Allsopp
Allsopp Consultancy Services, former Head of Payment
Systems, Bank of England
The
private sector has responded to the G10's call to provide
multi-currency settlement services to reduce Herstatt
risk. The key question for central banks now is: should
banks around the world be seeking to settle their trades
through CLS Bank, and if so, how? Peter Allsopp will
lead a discussion on the implications and opportunities
for banks worldwide presented by this quantum leap in
settlement provision.
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Tuesday
9 th SEPTEMBER
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NEW
ISSUES IN PAYMENT SYSTEM REFORM
Chairman:
Peter Allsopp, Allsopp Consultancy Services, former
Head of Payment Systems, Bank of England
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E-money
and emerging payments technologies
Hans Brits
Deputy Departmental Director, Payments Systems Policy
Department, De Nederlandsche Bank
Do central
banks - as payment systems overseers -have anything
to fear from new payment technologies, or is e-money
unlikely ever to move far beyond small-scale retail
experiments? This session discusses developments regarding
the use of the Internet and mobile phones for making
retail payments and the impact the Internet and e-commerce
will have on payment systems.
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The
future of the cheque as a payment instrument
Yvon Lucas
Head of Payment Systems, Banque de France
Seemingly
out of place in the world of electronic means of payment,
the old-fashioned cheque is still preferred and relied
on by many. This session will discuss the advances made
in France and elsewhere in streamlining the provision
of cheque processing and clearing. What is the future
of the cheque in emerging market and developing countries?
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The
future of payment systems
Charles
Goldfinger
Global Electronic Finance Management/Chairman, Financial
Internet Working Group
This
session will explore some of the possible future directions
which evolving money and payment systems technologies
may follow. What will be the consequences for central
banks of a proliferation of issuers and currencies?
Alternatively, will we see the emergence of a single
global currency? How will digital value contracts evolve
and what will be the regulatory implications?
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Some
neglected legal implications of e-money
speakers to be confirmed
The
use of e-money and e-commerce fit uneasily into currnt
legal structures. How can national authorities maintain
a legal structure that facilitates transactions in these
media? The session will consider the legal regimes conductive
to developing and ensuring safe and efficient payments
over the Internet and the regulation of e-money in general.
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:::Wednesday
10th SEPTEMBER
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CROSS-BORDER
LINKS BETWEEN COUNTRIES' FINANCIAL INFRASTRUCTURES
Chairman: Peter Allsopp, Allsopp Consultancy Services,
former Head of Payment Systems, Bank of England
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Looking
beyond TARGET
Johannes Priesemann
Head of the Payments Policy Division, ECB
In
the first of three case studies on the development of
cross-border links between countries' financial infrastructures
including payment and security settlement systems, the
Head of the Payments Policy Division at the ECB discusses
the direction in which developments beyond TARGET in
the eurozone are moving. The session will also cover
lessons learnt from the first phase of cross-border
European payment systems and securities settlement systems,
and the prospects of future links between retail payment
systems.
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Clearing
and settlement: the case for competition
Tim Jones
Chief Executive Officer, Mobile Payments Services Association
Should
payment systems be a national monopoly? The introduction
of the euro has highlighted the expense of cross-border
transfers in the eurozone - a competitive approach to
clearing and settlement will bring benefits to the consumer
in terms of time and cost, argues Tim Jones. Risks -
the usual defence for a monopoly - can be managed by
other means. Monopoly should therefore be the last resort.
A competitive approach to clearing and settlement, possibly
based on a regional model, could bring benefits to economic
trade at a time when regions are looking to foster closer
economic ties, the presenter argues.
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:::Thursday
11th SEPTEMBER
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MANAGING
TECHNOLOGICAL INNOVATION AND OPERATIONAL RISK
Chairman:
Peter Allsopp, Allsopp Consultancy Services, former
Head of Payment Systems, Bank of England
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Assessing
operational risk in payment systems
Roger
Jones
Director, Special Duties, APACS
Operational
risk can be interpreted as the risk of losses resulting
from inadequate or failed processes, people or systems,
or external events. Reliance on technology means computer
or mechanical failure is an ever-present worry. The
presenter will discuss what safeguards can be installed
and how IT and other operational risks can be monitored
and controlled. What provisions can be made to ensure
compliance and how should contingency facilities be
established.
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The
changing role of SWIFT
Harry Newman
Senior Manager, SWIFT, sc
In
the vast majority of modern payment infrastructures,
SWIFT's payment message system plays a central role.
SWIFT's experience in implementing technological change
in financial markets around the world is unrivalled.
The presentation will outline the key lessons it has
learnt, in developed and developing economies, and highlight
the trends in high-value payments and clearing. This
speaker will address the critical issues in payment
system reform and the central role of SWIFT in that
reform.
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How
to manage large-scale IT projects
Paul Whitmore
Chairman, Consultancy Associates Ltd (invited)
Reform
of national payment systems necessitates careful and
considered project management. How can countries at
different stages of development realistically plan and
actually implement such programmes? What are the critical
steps in the process? When should central banks and
others seek outside help? This experienced presenter
will address the potential pitfalls and lessons to be
learned in the management and implementation of large
scale IT projects.
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