As noted in the DVP Report, the overall risk characteristics, particularly liquidity risk characteristics, of any actual DVP mechanism will depend on the risk management features of that mechanism, along with market usage. The first is a constraint in some national systems on when during a payments system operating cycle transfers can be initiated and on when they are final. The second is a constraint on the hours of operation of payments systems themselves, which in turn implies a constraint on the times of day at which final transfers can be initiated and completed. Given such constraints, the sequential settlement of most currencies is inevitable. The only issue from the standpoint of credit and liquidity risk is how to manage and reduce those risks.
Significant changes are also under way.
The structures, along with relevant payments and insolvency law, determine the timing of the finality of transfers effected using these systems. 3.17 Two major types of large-value transfer system can be distinguished that have very different characteristics with respect to the timing of finality. The first type is the gross real-time transfer system, in which payment messages are processed one at a time through an operating system or systems, with each message resulting in the transfer of central bank money as it is processed. This would require, however, that payments, insolvency and other relevant laws grant a discharge of any obligation to transfer money at the point transfers of central bank money take place. This may not be the case in some countries.