Liquidity Definition: The ability of a settlement system participant to meet its current obligations in respect of funds and/or securities transfer. The liquidity of a Participant in the settlement system is measured by four components: Available balance (funds) on the current account Queued payment transfers from other participants in the settlement system to its account… Read More »
Clearing House Definition: A multilateral system or arrangement that provides its Participants with clearing services for payment instructions, securities transactions, derivatives transactions, and in some cases, settlement services. Details: The most famous example of a clearing house is “The Automated Clearing House (ACH) Network” the electronic funds-transfer system run by NACHA, since 1974. ACH provides… Read More »
Collateral Definition: An asset that is delivered by the collateral provider to secure an obligation to the collateral taker. Collateral arrangements may take different legal forms. Collateral may be obtained using the method of title transfer or pledge of assets. An asset or third-party commitment that is used by a collateral provider to secure an… Read More »
Clearing Definition: The process of transmitting, reconciling and, in some cases, confirming transactions prior to settlement, potentially including the netting of transactions and the establishment of final positions for settlement. Sometimes this term is also used (imprecisely) to cover settlement. For the clearing of futures and options, this term also refers to the daily balancing… Read More »
Available Balance Definition: The total funds a participant in a payment system has available for settlement of transactions at any moment. Calculated as a total of some pre-defined components: opening balance net value of credits and debits processed but not applied yes usable minimum reserve requirement account limits collaterals (loans, pledged securities, pledged stock options… Read More »
Acceptance for Settlement Definition: The moment at which a payment transaction becomes irrevocable as far as the sender is concerned. This is the point at which a transaction passes the tests to determine whether there is sufficient collateral for the transaction to proceed. Details: You have to see this as the last stage of a… Read More »
This post is more like a personal note of the resources indicated by Balaji as a must read if you want to start the journey of understanding crypto currencies and the underlying technology. Mastering Bitcoin Mastering Bitcoin is a book for developers, although the first two chapters cover bitcoin at a level that is also… Read More »
Starting from 9th of June 2021 #Bitcoin is legal tender in #ElSalvador. This has major world wide consequences and bellow are my takes on this. No country can tax profits from selling #Bitcoin as is no longer an “asset” but a currency. Remember #XRP issues with this topic. The Federal Reserve is investigating Ripple company,… Read More »
Swift MT and ISO messages are the basic message formats used all across the financial world in most of the payment systems. Yes there are notable exceptions like NACHA or some country specific message formats but if you need to interface with or implement some payment system that at some point connects to SWIFT you… Read More »
I all this BTC craze I wanted a nice way to get all the time the latest Bitcoin value and the value of my BTC stash.