CPI fixing swap and Real-time Payments: Difference between pages

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''Risk management - inflation risk - Consumer Price Index (CPI) - derivative instruments - swaps - inflation swap.''
''US''.


A CPI fixing swap is an agreement to exchange:
(RTP).


:(1) a series of payments referenced to the Consumer Price (or Prices) Index; for
Real-time Payments is a US system, launched in 2017, for faster payments between participating banks and their customers.


:(2) a fixed rate of interest.


<span style="color:#4B0082">'''''Instant payments for corporates?'''''</span>


CPI fixing swaps are used to manage CPI inflation risk.
:"... in a live proving exercise a [UK] Faster Payment valued in the tens of millions of pounds was sent and received.


Like other capital market swaps, they are settled net.
: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.''


Their current market prices also indicate the swap market's current average expectations about future rates of CPI inflation.


This is a dimension of ''expectations theory''.
== See also ==
* [[BACS]]
* [[C&CCC]]
* [[Clearing House Automated Payment System]]
* [[CPA]]
* [[Electronic commerce]]
* [[ERPS]]
* [[Faster Payments Service]]
* [[Immediate payments and the impact on corporate treasurers]]
* [[IMPS]]
* [[LVPS]]
* [[NPP]]
* [[Payments and payment systems]]
* [[PSP]]
* [[SEPA]]




== See also ==
===Other links===
* [[Accreting swap]]
[http://www.treasurers.org/node/2932 UK Faster Payments Service, ACT Briefing note, 2008]
* [[Amortising swap]]
* [[Asset-based swap]]
* [[Basis swap]]
* [[Capital market swap]]
* [[Collateral swap]]
* [[Constant maturity credit default swap]]
* [[Consumer Price Index]]  (CPI - US)
* [[Consumer Prices Index]]  (CPI - UK)
* [[Contract for differences]]
* [[Counterparty]]
* [[CPI swap]]
* [[Credit default swap]]
* [[Currency swap]]
* [[Debt for equity swap]]
* [[Derivative instrument]]
* [[Equity swap]]
* [[Expectations theory]]
* [[Fixing instrument]]
* [[Inflation]]
* [[Inflation risk]]
* [[Inflation swap]]
* [[Interest rate swap]]
* [[International Swaps and Derivatives Association]]  (ISDA)
* [[Longevity swap]]
* [[Overnight indexed swap]]
* [[Notional principal]]
* [[Risk management]]
* [[Swap]]
* [[Swap Break Clauses]]
* [[Swap overlay]]
* [[Swap rate]]
* [[Swaption]]
* [[Total return swap]]
* [[Zero-coupon swap]]


[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 18:12, 18 November 2020

US.

(RTP).

Real-time Payments is a US system, launched in 2017, for faster payments between participating banks and their customers.


Instant payments for corporates?

"... 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


Other links

UK Faster Payments Service, ACT Briefing note, 2008

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