CHAPS has confirmed that its operational hours will be extended from summer 2016 by one hour and forty minutes. The exact date will be confirmed later this year. This follows an 18-month review by the Bank of England in its role as owner of the Real Time Gross Settlement System (RTGS) system, which is used to settle CHAPS payments.
The extended hours will also apply to other users of the RTGS, including CREST, the UK’s securities settlement system (which separately issued its own bulletin detailing the extension of its operating hours till 18.00h UK time story).
This change increases market accessibility and better aligns the settlement day with the typical business day. Enabling Direct Participants to make high-value sterling CHAPS payments up until 18:00h UK time, Monday-Friday will allow them to offer later cut-off times to their own customers. Any other payment service provider offering CHAPS payments to customers will publish any changes to cut-off times in their terms and conditions.
Increased availability should be good news to both individuals and businesses alike, giving them more time in the day to make a critical payment. Individuals most commonly make CHAPS payments when purchasing a house or a high-value item.