HOME
SERVICES
BENEFITS
ABOUT US
OUR PARTNERS
NEWS
CONTACT US
HOME
SERVICES
BENEFITS
ABOUT US
OUR PARTNERS
NEWS
CONTACT US
Cash Netting Services
/
BENEFITS
Capital enhancement, risk reduction and compliance benefits
Liquidity
Reduction in payment value reduces size of required liquidity buffers.
Reduced debt costs and associated improved income from profitable reuse of assets estimated at 100-150bp for major currencies.
Netting efficiency (modelled at over 90% reduction in payments volumes) delivers savings of $’00 millions per annum to international banks.
Capital
CNS (treated as other netting services) can reduce capital held against Liquidity Coverage Ratio, releasing significant HQLA to the business.
Operations
CNS requires minimal operational change; banks maintain existing settlement and reconciliation workflows.
Risk
Fewer interbank payment transactions reduces transaction failures (netting community is
de facto
reconciliation agent).
Coordination of payment timings across banks leads to lower net exposures.
Session times and maximum gross exposures agreed between each netting pair further reduces counterparty risk.
Costs
Reduced payments volumes means lower payment transaction costs and associated messaging charges.
Technical
CNS re-uses well tried and tested software utilised by major CLS members and RTGS systems. Implementation is simple and straightforward.