INTERNATIONAL SETTLEMENT AND CLEARING SYSTEMS

Level: Introductory/Intermediate

Audience: Banks and corporates

Description: This is a one-day course designed to provide participants with a more
detailed knowledge of settlement and clearing systems. It can be customized to cover
areas of the world that are not the home territory for participants

Agenda:

1. Settlement and Clearing Systems
    •  Net settlement
    •  Real time gross settlement
    •  Real time net settlement
    •  Hybrid systems
    •  Continuous Linked Settlement (CLS)
    •  Class exercise

2. The UK Domestic Clearing System
    •  APACS
    •  BACS & FPS
    •  CHAPS
    •  Check clearing
    •  Check truncation
    •  Team exercise: Build the diagrams
    •  UK currency clearing
    •  Comparison of systems

3. The US Clearing System
    •  US banking environment
    •  Fedwire
    •  CHIPS
    •  ACH
    •  Check collection
    •  Class exercise: Human chain
    •  Comparison of systems
    •  Specialized vehicles
    •   Lockboxes
    •   Zero balance accounts
    •   Controlled disbursement accounts

4. Characteristics of Banking Systems that Impact Cash Management
    •  Banking system characteristics
    •  Country specific factors
 
5. International Banking Systems
    •  Correspondent banking
    •  Role of SWIFT
    •  BICS and IBANs
    •  How money moves across borders
    •  Paper
    •  Electronically
    •  Network clearing
    •  Direct clearing

6. European Clearing systems
    •  Impact of SEPA
    •  Team exercise: Implications for cash management
    •  TARGET2
    •  Team exercise: Build the diagram
    •  Other European clearing systems
                - EURO1
         - SCT, SDD
         - STEP2, M-PEDD
Global Strategic Planning
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FOUNDATION BANKING
Consulting, Inc.