TITLE: Bank of England Extends CHAPS Settlement Hours with Early Morning Opening
BODY:
On 24 February 2026, the Bank of England published a policy statement confirming its decision to extend Clearing House Automated Payment System (CHAPS) settlement hours by moving the start of settlement from 06:00 to 01:30. The early morning extension (EME) is targeted for implementation in September 2027, subject to final confirmation of timelines with affected CHAPS direct participants (DPs).
The extension follows a July 2025 consultation paper on extending Real-Time Gross Settlement (RTGS) and CHAPS settlement hours, to which the Bank received 42 responses from a broad range of stakeholders including CHAPS DPs representing 87 percent of CHAPS value in 2024, financial market infrastructures (FMIs), payment system operators, and trade associations. Of respondents, 41 percent indicated they would use the EME, predominantly larger, internationally focused institutions accounting for approximately 84 percent of overall CHAPS transaction value. The remaining 59 percent, primarily domestic-focused institutions, supported the optional participation model despite not planning immediate usage.
Participation in the EME will be optional for CHAPS DPs sending payments, though all DPs will receive payments from 01:30 regardless of participation status. The extension is designed to strengthen liquidity management, enhance operational resilience, support earlier settlement of high-value payments, and better align UK operations with global markets. The Bank will operate an alert and respond support model during the EME, with critical settlement-impacting incidents continuing to receive 24-hour monitoring and response. The Bank will not progress proposals for evening contingency window extensions at this stage but will explore refined proposals for additional settlement on certain bank holiday Mondays. Further consultation on near 24x7 settlement is planned for Spring 2026.
REFERENCES:
Bank of England. (2026). Extending RTGS and CHAPS settlement hours – early morning extension. Policy Statement. https://www.bankofengland.co.uk/news/2026/february/extending-rtgs-and-chaps-settlement-hours-early-morning-extension