｜WHITE PAPER

Intraday Liquidity and Risk:
The Hundred Million Dollar Challenge

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Effectively managing the risks, costs, and revenue impacts of intraday liquidity has become critical for financial institutions. By addressing these challenges, institutions can reduce inefficiencies, uncover new revenue streams, and implement real-time liquidity capabilities essential for thriving amid accelerated settlement cycles and increasing regulatory demands.

For mid-tier banks, the annual cost of maintaining intraday liquidity buffers often surpasses $100 million. As settlement timelines shorten, geopolitical tensions rise, and volatility increases, precise intraday liquidity management has become more urgent than ever. Real-time visibility into liquidity positions is key to navigating these challenges and maintaining stability in a fast-moving environment.

This white paper delves into the critical concepts behind effective intraday liquidity management. It explores the implications of current challenges faced by financial institutions and the practical constraints experienced in addressing them, including technological limitations, market structure factors – particularly cross-border issues around correspondent banking – and internal business drivers.

Download the white paper to gain insights into:

  • The latest challenges and trends: Explore the impact of T+1, tokenisation, DLT, and regulatory shifts on intraday liquidity management.
  • Cost-saving strategies: Discover the actual cost of intraday liquidity buffers and explore practical steps institutions can take to reduce their size.
  • Revenue generation possibilities: Learn how new intraday markets for FX swaps and repos, plus other opportunities, could be leveraged by institutions able to effectively manage and accurately forecast surplus liquidity.

Welcome to our Intraday Liquidity and Risk Series

This is the first in a series of three white papers designed to guide financial institutions through the complexities of intraday liquidity and risk by focusing on the following key areas:

Paper 1: Recognising the Scale of the Problem

Gain the tools to understand, measure, and effectively demonstrate to stakeholders the significance of the problem at hand. Clearly communicate its value by framing it in terms of risk, cost, and potential future revenue opportunities.

Paper 2: Defining a Real-Time Intraday Risk, Liquidity and Treasury Management Blueprint

Enable your institution to thrive in the present while strategically preparing for the transformative changes on the horizon as the settlement ecosystem continues to evolve.

Paper 3: Bridge the Gap between Current
System Constraints and the Future

Discover how your institution can seamlessly transition from siloed legacy systems to a future-ready architecture built on interoperable, scalable, and adaptable technologies. Leverage a platform designed to address your institution’s current business challenges while equipping your firm to meet the demands of tomorrow with confidence and efficiency.

Download Paper 1 to Start Building Your Expertise Today.

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Frequently Asked Questions

Why is intraday liquidity management important?

With tightening settlement timelines and increasing regulatory oversight, institutions must actively monitor, predict, and manage liquidity on an intraday basis. This ensures compliance, helps mitigate against liquidity shortfalls, and reduces opportunity costs associated with holding excessive buffers. 

What challenges does this white paper address?

The paper dives into the specific challenges institutions face, including fragmented legacy systems, regulatory pressures, and the operational inefficiencies of ineffective liquidity management. 

Who is this white paper for?

This white paper is designed for readers seeking to understand the key drivers and intricate challenges of balancing risks, costs, and opportunities in intraday liquidity management and how their institution could better navigate these complexities with enhanced visibility and control over liquidity positions.

Download our Intraday Liquidity and Risk: The Hundred Million Dollar Challenge White Paper