CHAPS settlement starts at 01:30 with early morning extension
The Bank of England has decided to extend CHAPS settlement hours, moving the start of settlement from 06:00 to 01:30. This early morning extension (EME) is planned for September 2027 and aims to align UK settlement with international markets.
Earlier CHAPS settlement from 01:30
The Bank of England will implement an Early Morning Extension (EME) for CHAPS settlement, shifting the start time from 06:00 to 01:30. This decision, a formal response to a July 2025 consultation, targets a September 2027 go-live, subject to final participant confirmation.
Participation in the EME will be optional for CHAPS direct participants (DPs), allowing them to send payments during the additional period.
All CHAPS DPs, however, will receive payments from 01:30. The extension is designed to support earlier settlement, strengthen liquidity and operational resilience, and better align UK settlement with international markets, facilitating progress against the G20 Roadmap.
This represents a core component of the Future Roadmap for RTGS, unlocking technical capabilities for a more resilient and internationally connected payments infrastructure.
Industry backs flexible early morning settlement
Feedback from 42 organisations to the July 2025 consultation paper was largely supportive of the EME, particularly among larger, internationally focused institutions.
Approximately 41 percent of respondents, representing 84 percent of CHAPS transaction value in 2024, indicated they would use the extended hours.
The remaining 59 percent, mainly domestic firms, supported the optional participation model despite no immediate personal need.
Most respondents (83 percent) agreed with the proposed September 2027 implementation, requesting 12–18 months' notice for technical and operational adjustments.
The Bank will not proceed with an extension to the evening contingency window due to limited demand.
However, it will continue to explore a refined proposal for additional bank holiday settlement, focusing on combined CHAPS and net settlement on certain Mondays.
A step towards 24/7, but not there yet
The early morning extension marks a pragmatic step towards modernising UK payment infrastructure, addressing specific needs of internationally focused institutions.
Its optional nature and deferred broader extensions mean a truly 24/7 settlement landscape remains a distant goal, highlighting systemic change complexities.
While beneficial for liquidity and resilience, this phased approach underscores significant operational hurdles still facing comprehensive reforms.