Investor Shelf

Glossary

Liquidity-Saving Mechanism (LSM)

An interbank payment system feature that reduces required intraday liquidity by queueing payments and settling offsetting sets together.

Source: Liquidity-Saving Mechanisms for 24/7 Instant Payment Systems: Rolling Liquidity Bounds, Certified Offsetting, and an Open Benchmark (Academic research) · p.1

Have a question about Liquidity-Saving Mechanism (LSM)? Ask the AI, answers cite the source.