BoE working group advances payment synchronisation design
The Bank of England's working group met on April 30, 2026, to gather industry input for the design of a new synchronisation service. The group discussed settlement models, earmark lifecycles, and regulatory considerations.
Co-creating payment synchronisation
The Bank of England convened its first co-creation thematic engagement working group on synchronisation on April 30, 2026.
The group aims to gather focused industry input for the design of a live synchronisation service, building on prior experimentation and policy work.
The Bank highlighted the recent launch of its Synchronisation Lab for hands-on industry testing, complementing efforts to address policy and design issues like risk mitigation, regulation, cost recovery, and onboarding processes.
Participants were reminded of competition law and confidentiality obligations.
Key design topics for industry input include settlement design models, the earmark lifecycle, transaction timing, and contingency planning.
Account holder-specific topics, such as earmarking and transaction prioritisation, are also central.
The Bank outlined a structured approach: topics are introduced, followed by questionnaires for input, and subsequent sessions review feedback.
A separate subgroup for account holders will gather focused input, with the main group concentrating on synchronisation operators.
Key questions for future design
Attendees raised several design questions, focusing on the earmark lifecycle, including cancellation and timeout functionalities, and the governance of settlement models.
The Bank confirmed these are open design points, balancing atomic settlement needs with liquidity efficiency.
Discussions also covered rule books and legal frameworks, with the Bank clarifying its role in establishing legal relationships while operators manage detailed rules with participants.
Input is being gathered from both synchronisation operators and account holders, acknowledging their potentially differing perspectives on liquidity management.
The Bank confirmed ongoing work with UK authorities to address the regulatory status and risks posed by synchronisation operators.
Feedback from technical solution providers is also welcomed, though implementation timelines remain under development.
Design over speed
The Bank of England's co-creation approach for its synchronisation service ensures a robust design.
Yet, persistent open questions on regulatory status and undefined timelines suggest a cautious, potentially slow, path to live operation.
This reflects the inherent complexities of balancing atomic settlement with liquidity efficiency in a critical new payment infrastructure.