Payment Systems: From the Salt Mines to the Board Room »

DOMINIQUE RAMBURE is Honorary President of the Euro Banking Association, the first payment system for a European currency, and of the Eastern Banking Association, the first payment system between Eastern European countries. Following a career with leading European and US banks, he is now a consultant on payment systems to international organisations and lectures at Paris University.

ALEC NACAMULI, MSC is currently Global Payments Executive at IBM. A 35 year industry veteran, he was previously member of the Executive Committee at SWIFT which he joined at its birth and led its geographical expansion and entry into value-added services and the securities markets.

Payment systems are changing profoundly through regulation, technology and competition from new entrants. This is a comprehensive introduction and reference on payment systems, covering their structure, international systems and settlements, and focusing on electronic transfers. It concludes with the future of the payments business.

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List of Tables

Foreword Gerard Hartsink Hartsink, Gerard

Pt. I The Structure and Economics of Payment Systems

1 The Architecture of Payment Systems 3

2 Payment Instructions 23

3 Cross-Currency Payments and SWIFT 43

4 Risks in Payment Systems, Oversight and Security 52

5 The Role of Payment Systems in the Economy 69

Pt. II Overview of Current Payment Systems

6 European Payments and SEPA 77

7 The US Payment Systems 103

8 Major Asian Payment Systems 114

9 New entrants 130

Pt. III The Settlement of Trading Activities 139

10 The Settlement of Foreign Exchange Trades and CLS 139

11 Securities Settlement 148

Pt. IV Wholesale Payment, Cash Management and Trade Facilitation Services

12 The Requirements of Corporations 161

13 Corporate Banking Services 172

Pt. V Banks and the Payments Business

14 The Banks' Back Offices 179

15 Payments as a Business for Banks 188

Pt. VI The Future

16 Where is the Payments Industry Going? 195

Conclusion 205

Appendix 207

Notes 208

Bibliography and Useful Websites 213

Glossary 216

Index 229