The Bank for International Settlements is opening a consultation on the propsect of extending and aligning payment system operating hours to improve cross-border payments.
The consultative report from the Committee on Payments and Market Infrastructures (CPMI) focuses on the operating hours of real-time gross settlement (RTGS) systems.
The CPMI says an extension of RTGS operating hours across jurisdictions could help address current obstacles, thereby increasing the speed of cross-border payments and reducing liquidity costs and settlement risks.
Based on a survey of 62 RTGS systems around the world, report outlines three potential improvements: an incremental increase in opening hours on current operating days; an extension to current non-operating days; and an increase to full 24/7 provision.
While the first measure would help close daily gaps in RTGS operating hours and the second would patch over holes at weekends and holidays, the third option "would likely require substantial operational changes but, if broadly adopted, this would largely remove frictions for cross-border payments arising from gaps in opening times."
The report also introduces the concept of a "global settlement window" - the period when the largest number of RTGS systems simultaneously operate.
The Committee has set a 14 January deadline for feedback from payment system operators, participants and other interested parties on the benefits and challenges presented by these three scenarios.