(25 May 2022 – Global) Rapidly increased cross-border payments speed, reduced liquidity costs and lower settlement risks are attainable by extending real-time gross settlement (RTGS) operating hours across jurisdictions the Bank for International Settlements reports.
The newly released BIS report issued as part of the G20 cross-border payments programme focuses on the operating hours of RTGS systems that are key to enhancing cross-border payments, expanding on public consultation conducted in Q4 2021.
The report introduces the concept of a “global settlement window”, the period when the largest number of RTGS systems simultaneously operate and discusses operational, risk and policy considerations related to those end states. Contributions were made by the workstream chair, Bank of Spain’s Carlos Conesa, Reserve Bank of Australia’s Grant Turner, Bank of England’s John Jackson and multiple other cross-border payments expansion workstream members globally.
Further reporting introduces a framework of best practice self-assessments to aid authorities and payment system operators evaluation of the benefits, risks, and barriers of expanding direct access to key payment systems.
“Three potential scenarios for extending RTGS system operating hours are presented (end states) and associated operational, risk and policy considerations. The three scenarios outlined range from an incremental increase in operating hours on current operating days to an increase to include current non-operating days and finally an extension to full 24-hour and seven-day-a-week operations” the report states.