FMI and Fintech: Oversight and Innovation in Payments and Settlements 2023

FMI and Fintech: Oversight and Innovation in Payments and Settlements

FMI and Fintech: Oversight and Innovation in Payments and Settlements

March 13-16

Live Content sessions held: 8am–12pm (EDT) | 12pm–4pm (GMT) | 8pm–12am (SGT) 

Chair: Richard Heckinger

  • What are the implications of CBDCs for payments and settlements?
  • Where do the opportunities lie to improve payments notably cross-border?
  • How can regtech and suptech add value to oversight?

In 2023, advances in financial technology continue to re-draw the oversight landscape. CBDCs, crypto assets and stablecoins are disrupting traditional payments and settlements. Cross-border linkages are being developed, creating new flows of funds, benefiting economies but also creating new exposures. Technology and data management offer new opportunities for overseers to understand Financial Market Infrastructures (FMI) and market interlinkages. As ever, the challenge for overseers is to strike a balance between promoting innovation and protecting the financial system. They know that while innovation can lead to greater efficiency in financial systems, it will also create new risks.

This course is designed to equip central bankers to meet these challenges. Each day will feature three hours of expert-led Live Content to ensure a range of perspectives on key topics. The course chair will ensure participants have opportunities to network throughout the course, with time set aside for a workshop on implementing recommendations, to maximise the opportunities to share and learn.

Payments 2023 Agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

13:0013:15

FMI and Fintech: course introduction + welcome
Course introduction session led by the chair

13:00 - 13:30

  • Introductions and welcome from the chairperson
  • Overview of the training course

  • Discussion of the delegate expectations

Richard Heckinger

Former vice-president and senior policy advisor

Federal Reserve Bank of Chicago

Richard Heckinger is a financial markets management professional. He retired in 2015 as Vice President and Senior Policy Advisor, Financial Markets Group, at the Federal Reserve Bank of Chicago. He started his career in financial markets at the Chicago Board Options Exchange in 1973, with subsequent executive positions at the Montreal (Stock) Exchange, the Chicago Mercantile Exchange as Clearing House Manager, and as Vice President, Financial Marketing, with a four-year posting in its London Representative Office. Following that, he was Chief Operating Officer and Council (Board) Member of the Stock Exchange of Hong Kong, and eventually Chief Executive and Board Member of its subsidiary, the Hong Kong Securities Clearing Corporation. After six years in Hong Kong he joined State Street Corp. in Boston as Senior Vice President, Global Operations. Other experience includes Head of the U.S. Representative Office for Deutsche Börse AG and Eurex. He has served on international committees, including a Federal Reserve Bank of New York working group, the OTC Derivatives Regulators’ Forum, SWIFT, and the International Securities Services Association (ISSA).  Presently, he is a Contributing Editor to the Central Banking Journal, Associate Editor of the Journal of Financial Market Infrastructure and a Member of the Editorial Advisory Board of the Global Commodities Applied Research Digest. He earned an M.Phil. degree in Economics from the London School of Economics, a B.A. degree in Mathematics from the Illinois State University, is a U.S. Army (Infantry) veteran and completed the Advanced Management Course at the University of Chicago.

13:1514:15

Impact of technology on the payments framework: key challenges in focus

12:15 - 13:15

  • The state of the art of financial technology in 2023

  • Key forces, trends and dynamics shaping financial market innovation

  • Unavoidable risks, critical challenges and emerging opportunities

  • Discussion: how do central banks need to change to make the most of fintech?

Richard Heckinger

Former vice-president and senior policy advisor

Federal Reserve Bank of Chicago

Richard Heckinger is a financial markets management professional. He retired in 2015 as Vice President and Senior Policy Advisor, Financial Markets Group, at the Federal Reserve Bank of Chicago. He started his career in financial markets at the Chicago Board Options Exchange in 1973, with subsequent executive positions at the Montreal (Stock) Exchange, the Chicago Mercantile Exchange as Clearing House Manager, and as Vice President, Financial Marketing, with a four-year posting in its London Representative Office. Following that, he was Chief Operating Officer and Council (Board) Member of the Stock Exchange of Hong Kong, and eventually Chief Executive and Board Member of its subsidiary, the Hong Kong Securities Clearing Corporation. After six years in Hong Kong he joined State Street Corp. in Boston as Senior Vice President, Global Operations. Other experience includes Head of the U.S. Representative Office for Deutsche Börse AG and Eurex. He has served on international committees, including a Federal Reserve Bank of New York working group, the OTC Derivatives Regulators’ Forum, SWIFT, and the International Securities Services Association (ISSA).  Presently, he is a Contributing Editor to the Central Banking Journal, Associate Editor of the Journal of Financial Market Infrastructure and a Member of the Editorial Advisory Board of the Global Commodities Applied Research Digest. He earned an M.Phil. degree in Economics from the London School of Economics, a B.A. degree in Mathematics from the Illinois State University, is a U.S. Army (Infantry) veteran and completed the Advanced Management Course at the University of Chicago.

14:1514:30

Break

12:45 - 13:00

14:3015:30

CBDCs, stablecoins and crypto assets: what are the implications for payments and settlements?

14:00 - 14:45

  • Differences and overlaps between privately issued crypto assets and central bank digital currencies (CBDC)

  • Building blocks of effective regulatory and supervisory frameworks for privately issued crypto assets

  • Implications of CBDCs for financial stability, payments and settlements

  • Discussion: do CBDCs represent a realistic and desirable goal?

Adolfo Sarmiento

Head of economic policy and markets

Central Bank of Uruguay

Adolfo Sarmiento is Head of Economic Policy and Markets, advising to the board at the Central Bank of Uruguay, he is responsible for the Monetary Policy implementation, the payment system regulation and supervision, and he’s involved in FinTech especially in the Central Bank Digital Currency Project. He also works as External Financial Advisor for the IMF on CBDC Projects. He holds a PhD in Economics for the Catholic University of Argentina.

15:3016:00

Networking break

15:30 - 16:00

16:0017:00

How will big tech, DLT and digital money affect financial market infrastructure?

13:00 - 13:45

  • Financial market infrastructure: a guide to the new normal

  • Overview of key disruptive forces and dynamics challenging FMIs

  • How are FMIs changing to utilise fintech?

Oded Salomy

Director of payment systems

Bank of Israel

13:0014:00

Evolution of RegTech: Trends in 2023 and beyond

13:00 - 13:30

  • Emergence of new services and actors

  • The impact of tech on oversite framework

  • Consequences for regulatory approaches

  • The global perspective

  • Outlook

Sholthana Begum

Head of Data and Strategy

FCA

14:0014:15

Break

12:45 - 13:00

14:1515:15

Making real-time payments a reality: an overseers’ guide

13:00 - 13:30

  • What is the distinction between wholesale and retail payments?

  • What are the different approaches central banks can take for real time payments?

  • Challenges that have arisen as more and more central banks create real-time payments

  • Opportunities from central bank experiences

Patrick Papsdorf

Head of Section of Payments Oversight in the Directorate General Payments and Market Infrastructure

European Central Bank

Patrick Papsdorf is Head of Section of Payments Oversight in the Directorate General Payments and Market Infrastructure (DG-MIP) at the European Central Bank (ECB). His area of responsibility comprises the oversight of payment systems and schemes, and encompasses the assessment of emerging risks and developments in the payments ecosystem, including aspects cyber resilience and financial innovation. Prior to this, Mr Papsdorf was Adviser to DG-MIP's Market Infrastructure Management Division, where he was in charge of analytical and compliance matters, and contributed to the operations and development of key market infrastructures.

Earlier positions include a commercial bank, the Deutsche Bundesbank and the Federal Reserve Bank of New York. Mr Papsdorf holds the German recognition as bank officer, a bachelor's degree in business management from the University of the Deutsche Bundesbank and a master in global management.

15:1515:45

Networking break

15:30 - 16:00

15:4516:45

Key Global trends in Fintech: Case Study from Ghana

13:00 - 13:30

Kwame Oppong

Head of fintech and innovation

Bank of Ghana

Kwame Oppong is the Head of Fintech and Innovation at Bank of Ghana.

His background spans Technology, Digital Financial Services (DFS), Public Policy, and Regulation. He has consulted for several governments, public sector institutions, international development organizations and private corporations globally.

Prior to joining the Bank, Kwame worked with CGAP (World Bank Group), Millicom, HP (now HP EB) and other organizations in the banking, housing finance and health insurance industries.

He is a passionate advocate for financial inclusion, innovation, and the development of digital economies.

13:0014:00

Fintech and innovation: sandboxes, incubators and accelerators

13:00 - 13:30

  • Sandboxes, incubators and accelerators: a central bankers guide

  • Role and functions in innovation strategies

  • Tips for helping innovation comply with legal and regulatory requirements

  • Issues for funding resourcing cross-jurisdictional cooperation

Agnes Gambill

Visiting Senior Research Fellow

George Mason University

Agnes Beatrice Gambill West is a Visiting Senior Research Fellow at the Mercatus Center at George Mason University.  

Agnes' research focuses on decentralized finance (DeFi) regulation, lowering barriers to innovation, the role of surveillance and privacy in DeFi payment transactions, the freedom to transact, and novel models of corporate governance for decentralized autonomous organizations (DAOs).      

Prior to joining Mercatus, Agnes worked for Appalachian State University as an assistant professor and as an attorney-advisor for startups.  Agnes is Co-Chair of the North Carolina Blockchain Initiative, is an appointee to the North Carolina Innovation Council, and serves on the Business and Consumer Payments Advisory Council for the Federal Reserve Bank of Richmond.  She has experience working as a proprietary trader and is the co-founder of an Ethereum-based blockchain payments company.  Her research has been published in the American Intellectual Property Law Association's (AIPLA) Quarterly Journal.   

Agnes received a JD from University of North Carolina School of Law, an LLM from Duke University School of Law, and an MSc from Oxford University. 

14:0014:15

Break

12:45 - 13:00

14:1515:15

Introducing a CBDC - how to apply advanced analytics and simulations to understand the opportunities and risks

13:00 - 13:30

  • State of play - CBDC and Digital Money

  • CBDC Simulation - overview and key applications for Central Banks

  • Demonstration - CBDC Simulation in action

Carlos León

Director, financial market infrastructures and digital currencies solutions

FNA

15:1515:45

Networking break

15:30 - 16:00

15:4516:45

The Eastern Caribbean - Pioneers of CBDCs

13:00 - 13:30

  • Dcash – where are we now and what went wrong?

  • What can we learn from the launch?

Sharmyn Powell

Chief risk officer

Eastern Caribbean Central Bank

Ms Sharmyn Powell has been employed at the Eastern Caribbean Central Bank for over 25 years and currently holds the position of Chief Risk Officer.  She leads the Office of Corporate Strategy and Risk Management with responsibility for Enterprise Risk Management, Compliance, Strategic Plan development and monitoring and Business Continuity Management. 

Prior to assuming this role, she served in various capacities at the Bank including, Deputy Director, Accounting Department, Director, Currency Management Department and Director, Support Services Management Department.  She is the Chairperson of the Bank’s Fintech Working Group, which is leading the implementation of the DCash Pilot Project for the issuance of a block-chain based digital version of the EC Currency. 

Ms Powell is a Certified Accountant (ACCA), and also carries the designations of Chartered Director (C. Dir) and Audit Committee Certified (A.C.C). 

13:0014:00

Challenger FMIs and new forms of money: a more efficient and safer payment ecosystem?

13:00 - 13:30

  • Updating the two-tier money ecosystem
  • Stablecoins as FMIs
  • Regulating and overseeing FMIs could make the payment ecosystem more efficient and safer
Carlos León

Director, financial market infrastructures and digital currencies solutions

FNA

14:0014:15

Break

12:45 - 13:00

14:1515:15

The risks and benefits of cross-border interoperability

13:00 - 13:30

  • The role of SWIFT in establishing standards the inter-operability of payment systems

  • Making international payments frictionless

  • The challenges of clearing

Carlo Palmers

Head of payments market infrastructures, marketing

SWIFT

Carlo looks after Market Infrastructures globally within SWIFT’s Products group, recently focusing on the integration with cross-border instant payments. Previously, Carlo managed the Payments Standards development, supporting the evolution from the SWIFT-proprietary standards towards ISO 20022, and worked in the SWIFT Corporate team, responsible for corporate connectivity to the SWIFT network. He represented SWIFT in international organisations, such as ISO, UN/CEFACT and the EPC. Before SWIFT, he worked in electronic banking at KBC Bank and participated in the creation of the Belgian domestic Isabel-platform.

Carlo Palmers has a master degree computer science from the University of Louvain, Belgium.

15:1516:15

FMI and Fintech: closing remarks and delegate action plans
Concluding session led by the chair

13:00 - 13:30

  • Summary of the course

  • Discussion of the observed trends and case studies

  • Application of learning points in the delegates’ home organisations

  • Preparation of action points

Richard Heckinger

Former vice-president and senior policy advisor

Federal Reserve Bank of Chicago

Richard Heckinger is a financial markets management professional. He retired in 2015 as Vice President and Senior Policy Advisor, Financial Markets Group, at the Federal Reserve Bank of Chicago. He started his career in financial markets at the Chicago Board Options Exchange in 1973, with subsequent executive positions at the Montreal (Stock) Exchange, the Chicago Mercantile Exchange as Clearing House Manager, and as Vice President, Financial Marketing, with a four-year posting in its London Representative Office. Following that, he was Chief Operating Officer and Council (Board) Member of the Stock Exchange of Hong Kong, and eventually Chief Executive and Board Member of its subsidiary, the Hong Kong Securities Clearing Corporation. After six years in Hong Kong he joined State Street Corp. in Boston as Senior Vice President, Global Operations. Other experience includes Head of the U.S. Representative Office for Deutsche Börse AG and Eurex. He has served on international committees, including a Federal Reserve Bank of New York working group, the OTC Derivatives Regulators’ Forum, SWIFT, and the International Securities Services Association (ISSA).  Presently, he is a Contributing Editor to the Central Banking Journal, Associate Editor of the Journal of Financial Market Infrastructure and a Member of the Editorial Advisory Board of the Global Commodities Applied Research Digest. He earned an M.Phil. degree in Economics from the London School of Economics, a B.A. degree in Mathematics from the Illinois State University, is a U.S. Army (Infantry) veteran and completed the Advanced Management Course at the University of Chicago.

Learning outcomes

At the conclusion of the training, participants will be able to:

  • Understand the key challenges FMIs are facing from fintech
  • Assess the opportunities for improving cross-border payments
  • Gain insight into how oversight frameworks are changing
  • Understand how to encourage innovation through sandboxes, incubators and accelerators
  • Analyse the impact of technology on the oversight framework