netting, protected netting via pooled funds, or open netting arrangements; capability to interface directly or via Swift to RTGS systems for final settlement; capability to ‘carry over’ queues and balances between intra-day clearing cycles; monitoring of account balances for both the central banks and participating institutions; monitoring of projected positions available to both the central banks and participating institutions.
Also for central bank requirements for RTGS and ACH
processing, there is Montran Automated Transfer System (ATS). It is meant to span high volumes of both high- and low- value payments, such as credit transfers, direct debits and cheques, and includes position maintenance and intraday liquidity management facilities. For low-value payment instructions, including truncated cheques together with their scanned images, it handles the exchange between financial institutions. It calculates multilateral net positions and settles them within the settlement module in either a continuous or deferred settlement mode. According to the supplier, the low-value payment
processor of the Montran ATS system has been benchmarked to process more than 25,000,000 payments within two hours on a dual-socket Intel machine (eight cores). There is also the Montran Central Securities Depository
System (CSD), providing depository functions for managing the primary register as well as secondary market transactions. Montran CSD manages government securities operations, including the registration and settlement of auction results from the primary market, sales and purchases, exchange
of custodian, registration, cancellation, and
execution of pledges; registration, management, and execution of repo and reverse repo agreements; payment of interest and coupons, registration and payment of partial and
Uptake and customer experiences
As mentioned, Montran claims its payment systems are installed in over 100 institutions in more than 40 countries, with central banks forming a significant part of its customer base. The central bank users tend to be in developing countries, with heavy usage in Africa, central Europe, central and Latin America, plus clutches in the Middle East. At the start of 2011, the Central Bank of Iraq went live with a new version of ACH, and another existing customer to upgrade was National Bank of Georgia, which moved to ATS in late 2010. It also implemented RTGS around the same time. Another central bank signing has been Central Bank of Lesotho which went live with Montran CSD in August 2010. Bank of Jamaica also went live with CSD in May 2009 and then followed this up with RTGS in February 2010. In 2011, the Maldives Monetary Authority went live with RTGS, and the National Bank of Ethiopia went live with ATS. As for ACH, the Bahamas Automated Clearing House went live with this in January 2010. For GPS, China Citic Bank International in the US went live
full security redemptions and settlement using DvP Model 1 with RTGS. Montran CSD supports all message types related to CSD payment processing including the MT5xx series and other related messages. Features include maintenance of an ‘Accounting Space’ facility that extends to a full securities database, containing details
of security types, issues, characteristics and
participants; the ability to establish and maintain limits for trading; logging of all securities and transaction information in a statistical database, which is used as the main source of reports generated by the CSD; a commission and charge facility, plus a billing module; maintenance of the latest information relating to a security and holdings by participants to ensure the validation of securities for third parties; support for free of payment (FOP) transfers; monitoring and reporting of all stages of pledge execution; monitoring and reporting of all stages of repurchase and reverse repurchase agreement execution, either manual or automatic. Montran Message Gateway provides a link between the
back office systems and the domestic clearing and settlement systems. It has been designed to facilitate STP. The Gateway can be adapted to a bank’s specific configuration requirements, including branch access via a thin client. The gateway is SEPA compliant. Montran Gateway supports all message types related to payment processing including MT1xx, MT2xx and MT9xx messages, incorporating high-value, bulk and low- value transactions. Features include the ability to handle a range of payment
products including RTGS, ACH and CSD; payments monitoring, enquiry and reporting; core ‘Payments Factory’ functionality; centralised or distributed configuration; payment service definition; integration with general ledger and other systems; adherence to Swift and national standards.
in July 2010. Barclays is also still a multi-site user (Germany, Ireland, Italy, UK). There are some smaller domestic bank users, such as First Caribbean International Bank in Barbados and Bank of Netherlands Antilles. A fair number of the users are in North America (BNP Paribas for Canada and the US, for instance), Bank Leumi in four US sites, Crédit Agricole CIB, KBC, SMBC (also a user in Belgium, Germany, UAE and the UK) and Société Générale. BNP Paribas, which first became a customer in 1995, upgraded to the latest version of GPS in February 2011. However, by virtue of its long existence, there are some customers on legacy implementations of GPS and there has been some replacement. Commerzbank, for instance, by 2008 had replaced GPS in six countries and had ear-marked several others for replacement, driven by its SEPA requirements. By the latter half of 2012, the solution’s days also
appeared to be numbered at both Bank of New York Mellon and Bank of China in the US. The former was embroiled in the construction of a single global hub for its payment activity supported by Clear2Pay’s Open Payment Framework while the latter had signed a large scale deal with Fundtech to
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