Inefficiency bothers Alan Jenson. He views fintech as the pursuit of efficient decisions and strives to make the world a more efficient place. Alan is an engineering manager at Paxos. His team develops Paxos Settlement Service, a chain-based clearing agency for US equities. When he is not project-planning or obsessing over functional programming, Alan enjoys bicycling and cooking. He swears that a cast iron pan and an instant pot can solve any problem that a microprocessor can’t. Prior to joining Paxos, Alan sharpened his skills on engineering teams at Betterment and Galatea. He graduated from Cornell University with a degree in economics.
Nothing but netting
Payment netting reduces asset movements and therefore makes financial systems more efficient. This workshop walks the audience through the implementation of 3 different payment netting strategies:
- Bilateral - each pair of parties settles its balance
- Unilateral - one party collects all of the payments and then distributes
- Multilateral - a network flow optimization removes payment cycles between parties, resulting in new bilateral balances, which are then settled bilaterally
In this workshop, you will have access to a Github repo with a Java project primed with domain objects and a calculator for netting efficiency. These will allow you to begin implementing algs immediately and compare the efficacy of each. Learn how to identify a payment netting problem, understand the differences between three common netting strategies, and gain implementation experience with multilateral netting.