The Bank of England has published a consultation on phase 1 of extending the settlement hours of RT2 and CHAPS, centred on a proposal to open CHAPS for settlement from 1.30am on existing settlement days. Implementation is targeted for the second half of 2027, as an interim step towards the Bank’s longer-run aim of near 24x7 settlement around the turn of the decade. The proposal would create an optional early settlement window for all CHAPS direct participants (DPs) from 1.30am to 6am, while leaving existing throughput rules and participant-specific start times unchanged and not opening other payment services for settlement in that window. CHAPS would be able to settle urgent and non-urgent payments available for settlement, including same-day and forward-dated payments, with payments submitted without a specific settlement time settling immediately at 1.30am subject to funds. Extended hours would operate under an ‘alert and respond’ support model, with no DP business or technology support between 1.30am and 5.45am and critical internal incidents triggering alerts and response, alongside unchanged contingency support arrangements. Intraday Liquidity would be credited at 1.30am but not amendable before 8am, and the euro liquidity bridge start time and Sterling Monetary Framework facility availability would remain unchanged. The paper also seeks early views ahead of a further consultation on extending the CHAPS contingency window from up to 8pm to up to 10pm and on enabling RT2 settlement during certain bank holiday weekends, including options for net settlement-only windows or a short window (around 2–3 hours) permitting both CHAPS and net settlement. Responses are requested by 21 October 2025. The Bank plans to publish a policy statement on the 1.30am CHAPS opening in early 2026, alongside a phase 2 consultation in early 2026 covering the evening contingency extension, bank holiday weekend settlement, and views on end-state settlement hours, followed by a further policy statement in 2026.
Bank of England 2025-07-29
Bank of England consults on opening CHAPS settlement from 1.30am under extended RT2 hours
The Bank of England has launched a consultation on extending CHAPS settlement hours, proposing an optional early settlement window from 1.30am to 6am starting in the second half of 2027. The proposal maintains existing throughput rules and participant-specific start times, with no changes to other payment services during this window. The consultation also seeks feedback on extending the CHAPS contingency window and enabling RT2 settlement during some bank holiday weekends.