Extending RTGS and CHAPS settlement hours – early morning extension | Bank of England

https://www.bankofengland.co.uk/paper/2026/ps/extending-rtgs-and-chaps-settlement-hours-early-morning-extension
Success
Service Clearing and Settlement Infrastructures 96% Cross-Border Payments 68%
Specialism Operational Resilience 78% Supervision 72%
2026-02-24 12:56:47 · csoo@vixio.com
ID
2902939
GUID
a73bd4bcb0164abc3a86887db5cabddc

Classification

Service
Clearing and Settlement Infrastructures (96%)

The update directly concerns CHAPS settlement system operational hours and infrastructure changes, which is core clearing and settlement infrastructure.

Cross-Border Payments (68%)

The early morning extension is designed to support cross-border payment flows and align UK operations with global markets, though the update itself focuses on settlement infrastructure rather than cross-border payment regulation.

Specialism
Operational Resilience (78%)

The early morning extension to CHAPS settlement hours is designed to strengthen liquidity management and operational resilience of the payment system infrastructure, which aligns with operational resilience frameworks.

Supervision (72%)

Low confidence — requires human review. The extension involves system infrastructure changes and stress-testing implications for payment firms' liquidity management capabilities, but the update is primarily a service hour change rather than a formal resilience or DORA requirement.

This policy statement sets out our decision to extend CHAPS settlement hours by moving the start of settlement from 06:00 to 01:30. Our intention is to put this early morning extension in place in September 2027.

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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
  • ✓ Scraped:2026-02-24 12:56:47
  • ✓ Created:2026-02-24 12:56:46
  • ✓ By:csoo@vixio.com (59)