"The rapid development of new electronic systems of payment, or e-money, offers society many potential benefits even as it poses new types of risk for system operators. The risks to which e-money is most subject-operational, fraud, and legal risk-pose new challenges to payment system risk...

"In this article, we consider the case for an intraday market for reserves. We discuss the separate roles of intraday and overnight reserves and argue that an intraday market could be organized in the same way as the overnight market. We present arguments in favor of and against a market for...