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RBA Glossary definition for liquidity

liquidity – The capacity to sell an asset quickly without significantly affecting the price of that asset. Liquidity is also sometimes used to refer to assets that are highly liquid.

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31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
of liquidity they hold, which may overstate the benefit of having such an algorithm. ... Some more detailed analysis of individual results underscores the importance of participants' liquidity- and queue-management strategies.
https://www.rba.gov.au/publications/rdp/2012/2012-05/results.html

Methodology

31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
As expected, the bilateral-offset algorithm significantly decreases the liquidity required to settle payments. ... This results in six scenarios being simulated (i.e. three reaction times two liquidity assumptions).
https://www.rba.gov.au/publications/rdp/2012/2012-05/methodology.html

Payment System Design and Participant Operational Disruptions

5 Sep 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2012/2012-05.html

Introduction

31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
Such a disruption in liquidity recycling can prevent other participants from settling their payments. ... that result from any liquidity shortage caused by a participant's operational disruption.
https://www.rba.gov.au/publications/rdp/2012/2012-05/introduction.html

References

31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
81. Johnson K, JJ McAndrews and K Soramäki (2005), ‘Economizing Liquidity with Deferred Settlement Mechanisms’, in H Leinonen (ed),. ... 122. Martin A and JJ McAndrews (2008), ‘An Economic Analysis of Liquidity-Saving Mechanisms’, Federal
https://www.rba.gov.au/publications/rdp/2012/2012-05/references.html

Australia's RTGS System

31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
In 2011, RITS settled on average around 35,500 transactions each day, with an average total value of $171 billion, using around $16 billion of liquidity. ... RITS incorporates a sub-limit feature that assists participants in managing their payments by
https://www.rba.gov.au/publications/rdp/2012/2012-05/aus-system.html

Conclusion

31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
this hybrid feature by reducing their holdings of liquidity.
https://www.rba.gov.au/publications/rdp/2012/2012-05/conclusion.html

Literature Review

31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
and Soramäki (2005) and Ercevik and Jackson (2009) use simulation analysis to quantify the impact of introducing hybrid features on liquidity demand and settlement delays; while Martin and McAndrews (2008) and ... Results from the simulation analysis
https://www.rba.gov.au/publications/rdp/2012/2012-05/literature-review.html

Appendix A: Simulator Algorithms

31 Dec 2012 RDP 2012-05
Ashwin Clarke and Jennifer Hancock
Based on a payment's status these algorithms adjust the amount of liquidity available to settle that payment based on the sub-limit data, which is entered using the bilateral limits
https://www.rba.gov.au/publications/rdp/2012/2012-05/appendix-a.html