Intra-day liquidity: Nadeem Shamim, DigFin VOX Ep 16

Central banks are pumping the financial system with liquidity. But do banks know where all of that liquidity sits, who is using it, and are there risks of it not being available?

Technology now makes it possible for banks to track and manage cash on an intra-day basis. This means better control over how banks manage capital, monitor payments and other transactions, and mitigate market and credit risks.

It also prepares banks to migrate more business to open-banking models and API connectivity. But there remain plenty of challenges to making this a reality.

Nadeem Shamim of SmartStream Technologies explains why intra-day liquidity is now a priority, the risks it addresses, and how this can help advance business models.

• Timecodes:
• 0:00 – Nadeem Shamim, SmartStream Technologies
• 1:16 – Liquidity lessons from COVID-19
• 3:08 – Understanding counterparty risk
• 4:52 – Cash pledged, versus “pure” cash
• 7:15 – Reducing operational losses
• 11:31 – Managing market risks such as credit
• 12:45 – What being ready for intraday liquidity looks like
• 15:50 – From intraday positions to intraday valuations
• 18:20 – Being ready for open banking and APIs