Simulation Research On The Importing Of Payment Splitting Algorithm In China’s High-Value Payment System

In the monetary economy, all transactions are associated by payments. Commodity economy and international trade is highly developed today, and the importance of payment also becomes very important. Large-value payment systems are always at the core position of a country’s financial society. Large-value payment system has went through a significant transformation in1990s, from delayed netting system (DNS) to real-time gross system (RTGS), which now has been adopted as the major form for large-value payment system by most of the nations in the world. Though eliminating the credit risk among banks, it has a higher requirement for liquidity. To solve this issue, most of the nations chose to add a liquidity saving mechanism (LSM), which can reduce the requirement for liquidity without the cost of credit risk among banks. Creation of this article is to explore the payment as a separate effort to split the mobility of algorithms to make savings mechanisms.From the basic system starting large-value payment systems analysis, summarized the results of previous studies scholars, and related liquidity-saving mechanisms and to pay the literature review done splitting algorithm, which also constitutes a theoretical preparation of this paper. After that, the author focuses on the payment split algorithm that particular liquidity savings mechanisms and principles set forth by rich illustrations analysis of different algorithms to split the payment workflow, classification, liquidity-saving effects, elaborate; and pay for large-value payment system splitting algorithm by summing the world exists the way the algorithm is introduced for the specific details of the system provides a reference design.The innovation embodied in this article is mainly on research methods and tools. Simulation methods and complex networks theory are unique means of this study. In modeling simulation study, this paper introduces the complex network theory as a research tool, it is applied to historical transaction data of large-value payment system, and then use self MATLAB program to the network structure of China’s large-value payment systems were simulation. The MATLAB program designed to take full account of the complexity of the structural properties of a network of large-value payment systems, analog data it generates practice the art of our country also has a greater reference value.To form the basis of the model, I selected the settlement on behalf of the system efficiency and system operating costs of different indicators, and set the scope of the study mobility, the distinction between scenes, each analysis. These indicators include UPI index system to measure the state of the final settlement day.Experimental conclusions show that the set included herein, including four fixed threshold algorithm and the balance split algorithm splits all payment splitting algorithm is able to improve settlement efficiency of the system in any level of liquidity, and all the split algorithm validity under various mobility scenarios similar, they differ from the representative of the validity of the curve tend to gather in clusters can be seen. But in terms of improving the different indicators, the effect of the characteristics split algorithms have some differences: Split algorithm to improve the effectiveness of the final settlement rates start from the lowest level of liquidity, with increasing levels of acceleration to enhance mobility; along with the level of mobility tends to increase more and more obvious effect. The main cost of fragmentation rate index FR measure split algorithm, which is characterized by:FR curve fixed split all thresholds are non-single trend started from the lowest level of liquidity, with the pay raise the level of liquidity fragmentation system relative number began to rise until the level reaches a peak with the liquidity to continue to rise into decline; fixed rate peak split fragmentation threshold corresponding to different levels of liquidity are different, and no obvious pattern. Meanwhile, the results of this study indicate that the balances brought split FR readings below the value of all fixed split, this phenomenon is not the norm, in theory, the specific causes of further study.Splitting can significantly improve the systemic settlement efficiency under the same level of liquidity, but it also brought up some other negative cost. The smaller the threshold values of the quota splitting, the more and smaller would the payment instructions be, then the number that can be settled would be also bigger and the corresponding settlement efficiency would be improved. The balance splitting is the optimal splitting, but it would results in more instructions. Splitting cut up the payment instructions, which may break the wholeness feature of payment instructions in daily life and also brought in inevitable wholeness cost for splitting.Situation would be more complex if we want to test the distribution between the different participants. And the uneven distribution of the different characteristics involved by splitting algorithms payment liquidity levels range most suitable also vary, In the end is what is causing these differences, the characteristic parameters must be considered participants in all aspects. As the relevant parameter index of participants is very diverse, it is difficult to filter out relevant variables truly effective, so this question in this article has not yet been resolved, In addition, the results showed that participants in the same fluidity elastic characteristics of different indicators have similar signs, this phenomenon has to be further studied.In summary, I believe that in all sorts of possible liquidity scenarios, China’s large-value payment system HVPS have reason to introduce payment split algorithm, and the balance split. This study shows that the algorithm seems most worth considering. This system and the mobility of individual participants to save the day, clearing efficiency gains are of great benefit. However,while the introduction of the payment split algorithm running ability of large-value payment system put forward higher requirements, but also made improvements to the system design requirements. To avoid the risk of a sudden reform, our country can learn from the United Kingdom’s large-value payment system CHAPS and Switzerland’s interbank settlement system SIC. Designer should encourage participants to use the function module system to conserve liquidity and to improve settlement efficiency. After the initial introduction of the effect can be sufficiently observed, then the designer can make further decisions on this algorithm. In terms of the impact of individual participants, the paper has made a comparative preliminary discussion. As to further results of relevant factors ongoing research is in need.