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BIS calls for feedback on proposals to extend RTGS operating hours

BIS calls for feedback on proposals to extend RTGS operating hours

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.

Comments: (1)

Nick Ogden
Nick Ogden - RTGS.global - London 24 November, 2021, 09:363 likes 3 likes

I have been asking for this change for years, even explaining to Mark Carkey personally in his office at the Bank of England the need for the UK to take a leadership role in 24x7x365 RTP, allowing us to catch up with systems in India and Australia.

The fastest way for the global economies to recover from the impacts of the Covid 19 pandemic is to reduce the $15TRN a year costs of financial friction. By accelerating wholesale interbank money flow, economies will perform more efficiently, and domestic employment and growth will flourish.

At RTGS.global we are now working to operate a global pilot with regulators and prudential banks that not only demonstrates this immediate efficiency but also illustrates how interbank risks can be substantially reduced.