FMI and Fintech: Oversight and Innovation in Payments and Settlements - main page Q4

FMI and Fintech: Oversight and Innovation in Payments and Settlements

FMI and Fintech: Oversight and Innovation in Payments and Settlements

November 22 – 25

 

Chair: Richard Heckinger, former vice-president and senior policy advisor, Federal Reserve Bank of Chicago

Innovation in financial technology continues to re-draw the contours of the oversight landscape. New players, new risks, new products, new networks.

In 2022, CBDCs, crypto assets and stablecoins have the potential to revolutionise payments, yet they also present significant challenges and disruptions. Traditional methods of payments increasingly seem outdated, and central banks are at risk of falling behind if they do not foster the new developments.

The question for overseers is how to strike a balance between promoting innovation, encouraging competition and protecting the financial system.

This course is designed to equip central bankers to meet these challenges.

Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, culminating in the Practical Implementation Workshop.

Timings: 8am-12pm (ET) | 12pm-4pm (GMT) | 8pm-12am (SGT) 

Course 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.

The Key Risks in the Changing Landscape of Payments

12:0012:15

Course introduction
Course introduction session led by the chair

06:00 - 06:15

  • 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.

12:1513:15

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

06:15 - 07:15

  • The state of the art of financial technology in 2021
  • 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?

13:1513:30

Break

07:15 - 07:30

13:3014:30

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

07:30 - 08:30

  • 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?

14:3015:00

Networking break
An opportunity to share experiences with your fellow participants.

14:30 - 15:00

15:0016:00

Fintech and innovation: sandboxes, incubators and accelerators

08:45 - 09:45

 

  • 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

Regulating and Improving Payments

12:0013:00

Cross-border payments: a cooperative oversight

06:00 - 07:00

  • Overview of applications of DLT for cross-border payment frameworks
  • Key operational risks associated with the market platforms
  • Implications for legal and regulatory frameworks
  • Next steps and checkpoints in cross-jurisdiction regulatory and supervisory cooperation and coordination

13:0013:15

Break

07:00 - 07:15

13:1514:15

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

13:15 - 14:15

  • 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

14:1514:30

Break

08:15 - 08:30

14:3015:30

Financial inclusion and digital financial services

14:30 - 15:30

  • Overview of current state of Financial System Ecosystem
  • Understanding Financial Inclusion  
  • Mobile Money and Agency Banking 
  • Discussion: How is DFS enhancing financial inclusion?

Use of Technology within Payments and Settlements

12:0013:00

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

06:00 - 07:00

  • 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?
  • Discussion: what do these changes mean for central banks as overseers and settlement providers?

13:0013:15

Break

07:00 - 07:15

13:1514:15

Applying network analytics and agent-based modelling in FMI design and oversight

07:15 - 08:15

  • Impact of fintech on the evolution of FMIs
  • Applications of advanced technology in the areas of network analytics and agent-based models for FMI oversight
  • Tips for collecting and effectively combining qualitative and quantitative statistics
  • Case study: building blocks of the new FMI framework in Canada

14:1514:30

Break

08:15 - 08:30

14:3015:30

Upgrading an RTGS system

08:30 - 09:30

  • Evolution of RTGS systems
  • Framework for assessing the risks and benefits of outsourcing
  • New demands and requirements of RTGS
  • Case study: lessons learnt from upgrading an RTGS system

Strengthening the Future of Financial Market Infrastructures

12:0013:00

Suptech for FMIs: new opportunities and challenges

06:00 - 07:00

  • Suptech for FMI oversight – the state of the art
  • Examples of advanced technology-based solutions for stress testing and data analytics
  • Tips for tackling new types of operational, legal and ethical risks
  • Hands-on exercise: stress-testing in practice

13:0013:15

Break

07:00 - 07:15

13:1514:15

What next for FMI resolution regimes?

07:15 - 08:15

  • What opportunities will digital money and technology bring in the next five years?
  • Can regulatory frameworks be created that support privately issued crypto assets and stablecoins?
  • How can overseers ensure fintech-derived efficiency in payments and settlements does not override resilience?
  • Discussion: what are the five key challenges that central bankers should focus on in 2022?

14:1514:45

Networking break
An opportunity to share experiences with your fellow participants.

14:15 - 14:45

14:4515:15

Closing remarks and delegate action plans
Concluding session led by the chair

08:30 - 09:00

  • 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.

15:1515:30

Feedback forum
We will send a link in this session to the feedback form and would kindly ask that you help us improve the training product by completing the survey. We would also welcome any verbal feedback in this session.

09:00 - 09:15

Date: December 9
The Implementation Workshop is a chair-led forum where attendees will have the opportunity to discuss challenges around implementing the ideas they have learnt during the Live Content. Prior to the workshop you will be emailed questions to prepare in order to gain the most from the session with peers. Date of the workshop to be confirmed.

13:0014:00

Implementation Workshop

11:00 - 12:00

Benefits of attending the Implementation Workshop: 

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

Learning outcomes

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

  • Understand how financial market infrastructures are responding to innovation
  • Assess the key challenges facing FMIs such as bigtech, CBDCs and DLT
  • Assess the opportunities for improving cross-border payments
  • Gain insight into how oversight  frameworks are changing
  • Apply network analytics to FMI design and oversight

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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.