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> lets banks settle the total amount of processed transactions, thus leaving out any details of particular transactions This is the definition of a Net settlem
by lmz 2y ago
> lets banks settle the total amount of processed transactions, thus leaving out any details of particular transactions
This is the definition of a Net settlement scheme (multiple transactions are combined at end of a period, resulting in only the net changes being transferred), not a Gross settlement scheme.
- lxgr 2y agoFedACH is a net settled scheme, but even then, the operator of such a scheme usually has visibility into individual payments (unless participating banks settle everything bilaterally and there is no central operator/hub).
- lmz 2y agoI was merely clarifying their use of "RTGS" vs their textual description of it.