The Global Financial Markets Association’s Global Foreign Exchange Division has supported the Bank of England’s proposal to extend Real-Time Gross Settlement and CHAPS operating hours, while arguing that reducing wholesale foreign exchange settlement risk should be the primary objective. Longer hours could expand opportunities for payment versus payment settlement, particularly on a multilateral netted basis, but would not by themselves materially improve wholesale cross-border payments or change market behavior. The association said effective implementation requires overlapping extensions by multiple central banks, longer service hours across nostro banks, custodians and other settlement providers, and further development of commercially viable payment versus payment services. Market participants would also need to adapt trading, post-trade and funding processes, increase automation, reduce exceptions, adjust staffing and upgrade systems. With wholesale foreign exchange settlement exceeding USD 14 trillion a day and payment versus payment accounting for 36%, the association urged the Bank of England to identify flows that could migrate from gross bilateral settlement, coordinate with other central banks and public-sector initiatives, and assess costs and benefits before implementation.
Global Financial Markets Association2026-08-13
Global Financial Markets Association supports extended Bank of England settlement hours, urges coordinated expansion of payment versus payment
The Global Financial Markets Association supported extending Bank of England RTGS and CHAPS settlement hours, with wholesale foreign exchange settlement-risk reduction as the main objective. It called for coordinated central bank operating-hour overlaps, broader industry participation and viable payment versus payment services to ensure longer hours deliver practical benefits.