Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

A novel algorithm for clearing financial obligations between companies - An application within the Romanian Ministry of economy

A novel algorithm for clearing financial obligations between companies - An application within... The concept of clearing or netting, as defined in the glossaries of European Central Bank, has a great impact on the economy of a country influencing the exchanges and the interactions between companies. On short, netting refers to an alternative to the usual way in which the companies make the payments to each other: it is an agreement in which each party sets off amounts it owes against amounts owed to it. Based on the amounts two or more parties owe between them, the payment is substituted by a direct settlement. In this paper we introduce a set of graph algorithms which provide optimal netting solutions for the scale of a country economy. The set of algorithms computes results in an efficient time and is tested on invoice data provided by the Romanian Ministry of Economy. Our results show that classical graph algorithms are still capable of solving very important modern problems. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Algorithmic Finance IOS Press

A novel algorithm for clearing financial obligations between companies - An application within the Romanian Ministry of economy

Algorithmic Finance , Volume 9 (1-2): 12 – Aug 24, 2021

Loading next page...
 
/lp/ios-press/a-novel-algorithm-for-clearing-financial-obligations-between-companies-KQxYVz8f9B

References (20)

Publisher
IOS Press
Copyright
Copyright © 2021 © 2021 – IOS Press. All rights reserved
ISSN
2158-5571
eISSN
2157-6203
DOI
10.3233/AF-200359
Publisher site
See Article on Publisher Site

Abstract

The concept of clearing or netting, as defined in the glossaries of European Central Bank, has a great impact on the economy of a country influencing the exchanges and the interactions between companies. On short, netting refers to an alternative to the usual way in which the companies make the payments to each other: it is an agreement in which each party sets off amounts it owes against amounts owed to it. Based on the amounts two or more parties owe between them, the payment is substituted by a direct settlement. In this paper we introduce a set of graph algorithms which provide optimal netting solutions for the scale of a country economy. The set of algorithms computes results in an efficient time and is tested on invoice data provided by the Romanian Ministry of Economy. Our results show that classical graph algorithms are still capable of solving very important modern problems.

Journal

Algorithmic FinanceIOS Press

Published: Aug 24, 2021

There are no references for this article.