Capacity trade and credit: update

10 August 2012

Download 'Capacity trade and credit: update'​ (3mb)

Please view the Capacity Exchange webpage of the Long Finance website

In May 2011 the City of London Corporation, the Economic and Social Research Council (ESRC) and Recipco jointly commissioned Z/Yen Group to produce a research report on the feasibility and potential of establishing a capacity exchange hub in the UK. Entitled “Capacity, Trade and Credit: Emerging Architectures for Commerce and Money”, the report was published in December 2011 and highlighted the potential for capacity exchanges to generate alternative credit systems for businesses, improve productivity and stimulate innovation in finance and business. The research concluded that multilateral reciprocal trade using common tender is an emerging sector with the potential to create complementary credit systems alongside traditional financial credit.

Download the original report, 'Capacity trade and credit: emerging architectures for commerce and money’.

Following the report launch, a roundtable took place on 25 June 2012, hosted and facilitated by The City of London. The aim was to provide a forum for discussion and an opportunity to raise key questions on two particular themes: the potential economic impact of multilateral reciprocal trade exchanges; and the need for standards and/or regulation of the issuance of common tender to support and improve its wider development.

This report, by Z/Yen, provides an update on developments in the areas of multilateral reciprocal trade, credit provision and common tender and provides a summary of the key points raised at the roundtable.