Faster Payments Service and Naked: Difference between pages

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imported>Doug Williamson
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(FPS).  
A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.


UK process for electronic payments, typically made via the internet or phone, to be processed in hours rather than days.  
The only possible profit or gain is from a favourable outturn market price.


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.
Naked positions are, by definition, speculative (rather than hedging).
 
 
:<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]]
* [[Arbitrage]]
* [[C&CCC]]
* [[Derivative]]
* [[Clearing House Automated Payment System]]
* [[Futures]]
* [[CPA]]
* [[Hedging]]
* [[Electronic commerce]]
* [[Option]]
* [[ERPS]]
* [[Outturn]]
* [[Faster Payments Scheme]]
* [[Speculation]]
* [[Immediate payments and the impact on corporate treasurers]]
* [[IMPS]]
* [[LVPS]]
* [[NPP]]
* [[Pay.UK]]
* [[Payments and payment systems]]
* [[PSP]]
* [[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 10:05, 7 October 2015

A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.

The only possible profit or gain is from a favourable outturn market price.

Naked positions are, by definition, speculative (rather than hedging).


See also