Global trends in large-value payments

Globalization and technological innovation are two major forces affecting the financial system and its infrastructure. Perhaps nowhere are these trends more apparent than in the internationalization and automation of payments. While the effects of globalization and technological innovation are most obvious on retail payments, the influence is equally impressive on wholesale, or interbank, payments. Given the importance of payments and settlement systems to the smooth operation and resiliency of the financial system, it is important to understand the potential consequences of these developments. This article presents ten major long-range trends in the settlement of large-value payments worldwide. The trends are driven by technological innovation, structural changes in banking, and the evolution of central bank policies. The authors observe that banks, to balance risks and costs more effectively, are increasingly making large-value payments in real-time systems with advanced liquidity-management and liquidity-saving mechanisms. Moreover, banks are settling a larger number of foreign currencies directly in their home country by using offshore systems and settling a greater number of foreign exchange transactions in Continuous Linked Settlement Bank or through payment-versus-payment mechanisms in other systems. The study also shows that the service level of systems is improving, through enhancements such as longer operating hours and standardized risk management practices that adhere to common standards, while transaction fees are decreasing. Payments settled in large-value payments systems are more numerous, but on average of smaller value. Furthermore, the overall nominal total value of large-value payments is increasing, although the real value is declining.Payment systems ; Electronic funds transfers ; Banks and banking - Automation ; Interbank market ; Globalization

Performance analysis of adaptive equalization for coherent acoustic communications in the time-varying ocean environment

Author Posting. © Acoustical Society of America, 2005. This article is posted here by permission of Acoustical Society of America for personal use, not for redistribution. The definitive version was published in Journal of the Acoustical Society of America 118 (2005): 263-278, doi:10.1121/1.1907106.Equations are derived for analyzing the performance of channel estimate based equalizers. The performance is characterized in terms of the mean squared soft decision error of each equalizer. This error is decomposed into two components. These are the minimum achievable error and the excess error. The former is the soft decision error that would be realized by the equalizer if the filter coefficient calculation were based upon perfect knowledge of the channel impulse response and statistics of the interfering noise field. The latter is the additional soft decision error that is realized due to errors in the estimates of these channel parameters. These expressions accurately predict the equalizer errors observed in the processing of experimental data by a channel estimate based decision feedback equalizer (DFE) and a passive time-reversal equalizer. Further expressions are presented that allow equalizer performance to be predicted given the scattering function of the acoustic channel. The analysis using these expressions yields insights into the features of surface scattering that most significantly impact equalizer performance in shallow water environments and motivates the implementation of a DFE that is robust with respect to channel estimation errorsThis work has been supported by ONR Grant Nos. N00014-00-1-0048 and N00014-02-C-0201

Adaptive matched field processing in an uncertain propagation environment

Submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy at the Massachusetts Institute of Technology and the Woods Hole Oceanographic Institution January 1992Adaptive array processing algorithms have achieved widespread use because they are very effective at rejecting unwanted signals (i.e., controlling sidelobe levels) and in general have very good resolution (i.e., have narrow mainlobes). However, many adaptive high-resolution array processing algorithms suffer a significant degradation in performance in the presence of environmental mismatch. This sensitivity to environmental mismatch is of particular concern in problems such as long-range acoustic array processing in the ocean where the array processor's knowledge of the propagation characteristics of the ocean is imperfect. An Adaptive Minmax Matched Field Processor has been developed which combines adaptive matched field processing and minmax approximation techniques to achieve the effective interference rejection characteristic of adaptive processors while limiting the sensitivity of the processor to environmental mismatch. The derivation of the algorithm is carried out within the framework of minmax signal processing. The optimal array weights are those which minimize the maximum conditional mean squared estimation error at the output of a linear weight-and-sum beamformer. The error is conditioned on the propagation characteristics of the environment and the maximum is evaluated over the range of environmental conditions in which the processor is expected to operate. The theorems developed using this framework characterize the solutions to the minmax array weight problem, and relate the optimal minmax array weights to the solution to a particular type of Wiener filtering problem. This relationship makes possible the development of an efficient algorithm for calculating the optimal minmax array weights and the associated estimate of the signal power emitted by a source at the array focal point. An important feature of this algorithm is that it is guarenteed to converge to an exact solution for the array weights and estimated signal power in a finite number of iterations. The Adaptive Minmax Matched Field Processor can also be interpreted as a two-stage Minimum Variance Distortionless Response (MVDR) Matched Field Processor. The first stage of this processor generates an estimate of the replica vector of the signal emitted by a source at the array focal point, and the second stage is a traditional MVDR Matched Field Processor implemented using the estimate of the signal replica vector. Computer simulations using several environmental models and types of environmental uncertainty have shown that the resolution and interference rejection capability of the Adaptive Minmax Matched Field Processor is close to that of a traditional MVDR Matched Field Processor which has perfect knowledge of the characteristics of the propagation environment and far exceeds that of the Bartlett Matched Field Processor. In addition, the simulations show that the Adaptive Minmax Matched Field Processor is able to maintain it's accuracy, resolution and interference rejection capability when it's knowledge of the environment is only approximate, and is therefore much less sensitive to environmental mismatch than is the traditional MVDR Matched Field Processor.The National Science Foundation, the General Electric Foundation, the Office of Naval Research, the Defense Advanced Research Projects Agency, and the Woods Hole Oceanographic Institution

Relationships of earthquakes (and earthquake-associated mass movements) and polar motion as determined by Kalman filtered, Very-Long-Baseline-Interferometry

A Kalman filter was designed to yield optimal estimates of geophysical parameters from Very Long Baseline Interferometry (VLBI) group delay data. The geophysical parameters are the polar motion components, adjustments to nutation in obliquity and longitude, and a change in the length of day parameter. The VLBI clock (and clock rate) parameters and atmospheric zenith delay parameters are estimated simultaneously. Filter background is explained. The IRIS (International Radio Interferometric Surveying) VLBI data are Kalman filtered. The resulting polar motion estimates are examined. There are polar motion signatures at the times of three large earthquakes occurring in 1984 to 1986: Mexico, 19 September, 1985 (Magnitude M sub s = 8.1); Chile, 3 March, 1985 (M sub s = 7.8); and Taiwan, 14 November, 1986 (M sub s = 7.8). Breaks in polar motion occurring about 20 days after the earthquakes appear to correlate well with the onset of increased regional seismic activity and a return to more normal seismicity (respectively). While the contribution of these three earthquakes to polar motion excitations is small, the cumulative excitation due to earthquakes, or seismic phenomena over a Chandler wobble damping period may be significant. Mechanisms for polar motion excitation due to solid earth phenomena are examined. Excitation functions are computed, but the data spans are too short to draw conclusions based on these data

Surface wave focusing and acoustic communications in the surf zone

Author Posting. © Acoustical Society of America, 2004. This article is posted here by permission of Acoustical Society of America for personal use, not for redistribution. The definitive version was published in Journal of the Acoustical Society of America 116 (2004): 2067-2080, doi:10.1121/1.1771591.The forward scattering of acoustic signals off of shoaling surface gravity waves in the surf zone results in a time-varying channel impulse response that is characterized by intense, rapidly fluctuating arrivals. In some cases, the acoustic focusing by the curvature of the wave crest results in the formation of caustics at or near a receiver location. This focusing and the resulting caustics present challenges to the reliable operation of phase coherent underwater acoustic communications systems that must implicitly or explicitly track the fluctuations in the impulse response. The propagation physics leading to focusing are studied with both experimental data and a propagation model using surface wave profiles measured during the collection of the experimental data. The deterministic experimental and modeled data show good agreement and demonstrate the stages of the focusing event and the impact of the high intensity arrivals and rapid fluctuations on the ability of an algorithm to accurately estimate the impulse response. The statistical characterization of experimental data shows that the focusing by surface gravity waves results in focused surface reflected arrivals whose intensity often exceeds that of the direct arrival and the focusing and caustic formation adversely impacts the performance of an impulse response estimation algorithm.This work has been supported by ONR Grant Nos. N00014-96-1-0120, N00014-00-1-0303, N00014-99-1-0274, and N00014-00-1-0048

Coupled acoustic mode propagation through continental-shelf internal solitary waves

Author Posting. © IEEE, 1997. This article is posted here by permission of IEEE for personal use, not for redistribution. The definitive version was published in IEEE Journal of Oceanic Engineering 22 (1997): 256-269, doi:10.1109/48.585945.Three techniques are used to investigate mode coupling as acoustic energy passes through continental-shelf internal solitary waves (ISW's). Results from all techniques agree. The waves considered here are single downward undulations of a thermocline layer separating upper and lower well-mixed layers. Two techniques are numerical: parabolic equation (PE) solution and a sudden approximation joining range-invariant regions at sharp vertical interfaces. The third technique is an analytic derivation of ISW scale lengths separating adiabatic (at large scale) and coupled-mode propagation. Results show that energy is exchanged between modes as ISW's are traversed. The sharp interface solutions help explain this in terms of spatially confined coupling and modal phase interference. Three regimes are observed: 1) for short ISW's, coupling upon wave entrance is reversed upon exit, with no net coupling; 2) for ISW scales of 75-200 m, modal phase alteration averts the exit reversal, giving net coupling; transparent resonances yielding no net coupling are also observed in this regime; and 3) for long ISW's, adiabaticity is probable but not universal. Mode refraction analysis for nonparallel acoustic-ISW alignment suggests that these two-dimensional techniques remain valid for 0° (parallel) to 65° (oblique) incidence, with an accordant ISW stretchingThis work was supported by the Office of Naval Research under Grant N00014-95-1-0029 and Grant N00014-95-1-0051

A modeling study of acoustic propagation through moving shallow-water solitary wave packets

Author Posting. © IEEE, 1999. This article is posted here by permission of IEEE for personal use, not for redistribution. The definitive version was published in IEEE Journal of Oceanic Engineering 24 (1999): 16-32, doi:10.1109/48.740153.Propagation of 400-Hz sound through continental-shelf internal solitary wave packets is shown by numerical simulation to be strongly influenced by coupling of normal modes. Coupling in a packet is controlled by the mode coefficients at the point where sound enters the packet, the dimensions of the waves and packet, and the ambient depth structures of temperature and salinity. In the case of a moving packet, changes of phases of the incident modes with respect to each other dominate over the other factors, altering the coupling over time and thus inducing signal fluctuations. The phasing within a moving packet varies with time scales of minutes, causing coupling and signal fluctuations with comparable time scales. The directionality of energy flux between high-order acoustic modes and (less attenuated) low-order modes determines a gain factor for long-range propagation. A significant finding is that energy flux toward low-order modes through the effect of a packet near a source favoring high-order modes will give net amplification at distant ranges. Conversely, a packet far from a source sends energy into otherwise quiet higher modes. The intermittency of the coupling and of high-mode attenuation via bottom interaction means that signal energy fluctuations and modal diversity fluctuations at a distant receiver are complementary, with energy fluctuations suggesting a source-region packet and mode fluctuations suggesting a receiver-region packet. Simulations entailing 33-km propagation are used in the analyses, imitating the SWARM experiment geometry, allowing comparison with observationsThis work was supported by the Office of Naval Research under Grant N00014-95-1- 0029 and Grant N00014-95-1-0051

The Predictive Value of Individual Electric Field Modeling for Transcranial Alternating Current Stimulation Induced Brain Modulation

There is considerable individual variability in the reported effectiveness of non-invasive brain stimulation. This variability has often been ascribed to differences in the neuroanatomy and resulting differences in the induced electric field inside the brain. In this study, we addressed the question whether individual differences in the induced electric field can predict the neurophysiological and behavioral consequences of gamma band tACS. In a within-subject experiment, bi-hemispheric gamma band tACS and sham stimulation was applied in alternating blocks to the participants’ superior temporal lobe, while task-evoked auditory brain activity was measured with concurrent functional magnetic resonance imaging (fMRI) and a dichotic listening task. Gamma tACS was applied with different interhemispheric phase lags. In a recent study, we could show that anti-phase tACS (180° interhemispheric phase lag), but not in-phase tACS (0° interhemispheric phase lag), selectively modulates interhemispheric brain connectivity. Using a T1 structural image of each participant’s brain, an individual simulation of the induced electric field was computed. From these simulations, we derived two predictor variables: maximal strength (average of the 10,000 voxels with largest electric field values) and precision of the electric field (spatial correlation between the electric field and the task evoked brain activity during sham stimulation). We found considerable variability in the individual strength and precision of the electric fields. Importantly, the strength of the electric field over the right hemisphere predicted individual differences of tACS induced brain connectivity changes. Moreover, we found in both hemispheres a statistical trend for the effect of electric field strength on tACS induced BOLD signal changes. In contrast, the precision of the electric field did not predict any neurophysiological measure. Further, neither strength, nor precision predicted interhemispheric integration. In conclusion, we found evidence for the dose-response relationship between individual differences in electric fields and tACS induced activity and connectivity changes in concurrent fMRI. However, the fact that this relationship was stronger in the right hemisphere suggests that the relationship between the electric field parameters, neurophysiology, and behavior may be more complex for bi-hemispheric tACS