BoE proposes near 24x7 settlement for RTGS/CHAPS
The Bank of England has published a consultation paper outlining proposals to extend RTGS and CHAPS settlement hours towards near 24x7 operation. This builds on an early morning extension in September 2027, with further steps planned from 2029.
The march to 24x7 settlement
The Bank of England is consulting on a phased extension of RTGS and CHAPS settlement hours, aiming for near 24x7 operation.
This follows the confirmed early morning extension, which will see CHAPS open at 01:30 from September 2027, extending daily settlement to 16.5 hours.
The paper outlines two further steps: introducing an additional settlement day at weekends, likely Sundays, and on certain UK bank holidays; and lengthening the settlement window on existing settlement days.
The Bank's preferred sequencing prioritises weekend and bank holiday settlement, not before 2029, followed by extended daily settlement hours, not before 2031.
Longer-term options include 22x7 or near-continuous 23.5x7 operation.
These changes aim to maximise benefits from innovation, enhance cross-border payments by expanding global settlement windows, and improve liquidity efficiency.
A future-ready payments landscape
The Bank of England's vision is a safe, resilient multi-money ecosystem, with central bank money as its anchor.
Rapid innovation and the demand for always-on payments necessitate future-ready infrastructure to foster private-sector innovation and UK competitiveness.
Extending settlement hours is crucial for this, enabling different forms of money to interoperate across conventional and distributed ledger infrastructure.
This aligns with the G20 agenda to improve cross-border payments, as longer, aligned RTGS hours reduce delays and liquidity costs.
The renewed RTGS service (RT2) and initiatives like the Synchronisation service underpin these strategic objectives.
Ambitious, but necessary
The Bank of England's move towards near 24x7 settlement is ambitious, reflecting the global shift in payment expectations.
While the phased approach offers a pragmatic path, the scale of operational and technical changes for the industry will be substantial.
This consultation is therefore crucial for balancing innovation benefits with the practical realities of implementation.