The Federal Reserve presents the results of interviews with 49 organisations on developments in payments, clearing, and settlement services, focusing on potential barriers to further innovation and the implications of new technologies for the design and function of payments systems.
The study presents nine key issues - including settlement timing and standards - and accompanying recommendations.
No single issue was consistently identified, no single recommendation was made by a significant number of interviewees, and, with a few exceptions, no fundamental problems with or barriers to innovation in existing clearing and settlement arrangements were noted.
The Fed believes the interviews point to the complexity of the payments sytem and diffiulty of innovation, rather than any inherent satisfaction with the status quo.
The results "highlight the need to identify and address barriers to innovation, where appropriate, and to monitor closely clearing and settlement arrangements to ensure that they evolve in ways that support safe and efficient payments today and in the future", states the Federal Reserve.
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