Faster Payments Service and Fat tail: Difference between pages

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(FPS).  
'Fat tails' describes the greater likelihood of extreme market conditions, than predicted by conventional models of probability.


UK process for electronic payments, typically made via the internet or phone, to be processed in hours rather than days.  
This pattern is also known as 'leptokurtosis'.


It allows credit transfers and standing orders to be paid in near real time.  There is a maximum transaction amount.  It is operated by VocaLink 24 hours a day, 7 days a week.


 
This means that the likelihood and size of extreme negative events is systematically underestimated by conventional statisitcal models.
:<span style="color:#4B0082">'''''Instant payments for corporates?'''''</span>
 
:"... in a live proving exercise a [UK] Faster Payment valued in the tens of millions of pounds was sent and received.
 
:In comparison, SCT Inst has started with a EUR 15,000 limit, and the US Real-time Payments System caps transactions at USD 25,000."
 
:''The Treasurer magazine, April 2018, p23 - In Search of the Tipping Point.''




== See also ==
== See also ==
* [[BACS]]
* [[Black swan]]
* [[C&CCC]]
* [[CertFMM]]
* [[Clearing House Automated Payment System]]
* [[Frequency distribution]]
* [[CPA]]
* [[Leptokurtic frequency distribution]]
* [[Electronic commerce]]
* [[Leptokurtosis]]
* [[ERPS]]
* [[Normal frequency distribution]]
* [[Faster Payments Scheme]]
* [[Standard deviation]]
* [[Immediate payments and the impact on corporate treasurers]]
* [[Tail event]]
* [[IMPS]]
* [[Tail risk]]
* [[LVPS]]
* [[NPP]]
* [[Pay.UK]]
*[[Payment service provider]]  (PSP)
* [[Payments and payment systems]]
* [[Real-time Payments]]
* [[Single Euro Payments Area]]  (SEPA)
* [[Single Immediate Payment]]
 
 
==Other resource==
[http://www.treasurers.org/node/2932 UK Faster Payments Service, ACT Briefing note, 2008]
 
[[Category:Cash_management]]

Revision as of 16:53, 12 August 2016

'Fat tails' describes the greater likelihood of extreme market conditions, than predicted by conventional models of probability.

This pattern is also known as 'leptokurtosis'.


This means that the likelihood and size of extreme negative events is systematically underestimated by conventional statisitcal models.


See also

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