CPMI: Extending and aligning payment system operating hours for cross-border payments
18 May 2022
This final report – issued as part of the G20 cross-border payments programme – focuses on the operating hours of real-time gross settlement (RTGS) systems, as systems that are key to enhancing cross-border payments.
It builds on the public consultation conducted in late 2021.
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 central banks from 82 jurisdictions, 62 RTGS
systems around the world were analysed and three potential "end states"
for extending the operating hours of key payment systems were posited:
- End state 1 is an increase in operating hours on
current operating days. If undertaken by multiple jurisdictions, this
would help to close daily gaps in RTGS operating hours, primarily on
standard working days, given that the RTGS systems of most jurisdictions
are closed on weekends and public holidays.
- End state 2 involves an extension of operations to
additional days on which many RTGS systems do not currently operate. If
undertaken by multiple jurisdictions, this would help to close the gaps
created by holidays and weekends.
- End state 3 is the extension of operating hours to
24/7. Very few RTGS systems currently provide near 24/7 service. Doing
so would likely require substantial operational changes but, if broadly
adopted, this would largely remove the frictions for cross-border
payments that arise 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. It also discusses operational, risk and policy
considerations related to those end states.
full paper
CPMI
© BIS - Bank for International Settlements
