Skip to main content
  • This website sets cookies on your device. To find out more about how we use cookies please refer to our Privacy and Cookie Policy. By continuing to use the site, we’ll assume that you are content for us to set these on your device.
  • Close
Home > Markets and Payments > Market wide communication – extended CHAPS/CREST settlement day forum
 

Market wide communication – extended CHAPS/CREST settlement day forum

The Bank, CHAPS Co and EUI – the operators of the CHAPS and CREST systems – have been hosting a dedicated market wide forum to advise on the implementation of changes for the extended CHAPS and CREST settlement day that took effect from 20 June 2016. This page sets out the purpose of the forum as well as links to governance and other documents.

The objectives of the forum are:

  • To facilitate discussion and resolution of issues ahead of the introduction of an extended settlement day in summer 2016 especially where a collaborative approach will be beneficial:
    - Sharing information and best practice
    - Resolving issues identified by CHAPS Co or EUI’s governance or other stakeholders
    - Resolving, or allocating to other fora, issues that are not appropriate for CHAPS Co or EUI’s governance to address
  • To provide input to the Bank of England, CHAPS Co and EUI on factors to consider in deciding an implementation date for summer 2016
  • To provide input into the assessment of service provider/user readiness for go-live
  • To ensure common understanding of the benefits of an extended settlement day and support for passing benefits to end-users

The forum is advisory and does not have formal decision-making authority. Attendees of the forum include the Bank, CHAPS Co, EUI, major service providers such as banks and custodians, and various indirect participants and other users, which are typically represented through trade associations. See under Key Resources for the full Terms of Reference.

Key points

July 2015 Forum:  Attendees discussed the costs and benefits of the extended settlement day and expressed the importance of knowing what the revised cut-off times of the first tier of service-providers would be and when they would be announced. Feedback was sought from members to inform the decision of the precise implementation date.  Input was invited from members on the forward agenda for the forum, with much of the focus on how market rules and conventions might change intraday.

September 2015 Forum:  CHAPS Co explained it has a working group considering revisions to its throughput rules. Potential changes to the timing of certain trading and settlement activities related to the sterling money markets were discussed. A member of the property sector market outlined the benefits from the extended settlement day and potential challenges to extending the current 14:00 deadline in the standard conditions of sale used.

November 2015 Forum: CHAPS Co reported that it set up a working group with its direct participants to assess their readiness to implement the change to the settlement day, including the process to cascade revised transaction cut-off times to clients, which was emphasised as a key short-term deliverable.  Members of the Forum updated on the engagement activity they had been undertaking with their constituencies.  The London Money Market Association reported that it would be surveying its members on the impact of the change to the settlement day on their market.
 
January 2016 Forum: The Bank, CHAPS Co and Euroclear UK & Ireland reported that preparations for implementing the extended settlement day on 20 June 2016 are on course and identified risks are being appropriately mitigated. The majority of CHAPS direct participants would be communicating their new transaction cut off times to clients by the end of January. The London Money Market Association reported that its members had agreed a new convention for the end of the sterling money market trading day.
 
March 2016 Forum: The Bank, CHAPS Co and Euroclear UK & Ireland reported that preparations for implementing the extended settlement day on 20 June 2016 are on course. Representative bodies continued to report a satisfactory level of awareness of the implications of the change amongst their members, and a growing level of awareness of revised transaction cut-off times. CHAPS Co reported on its revised throughput rules. EUI reported on its engagement with registrars, which revealed a good state of readiness.
 
April 2016 Forum: The Bank, CHAPS Co and Euroclear UK and Ireland reported that preparations for implementing the extended settlement day on 20 June 2016 are on course, and residual risks are decreasing. Representative bodies continued to report a satisfactory level of awareness amongst their members. The Bank reported that, in addition to wider communications via forum members, various other bodies representing financial and non-financial institutions had been contacted to broaden awareness of the forthcoming change. 
 
May 2016 Forum: The Bank, CHAPS Co and Euroclear UK and Ireland reported that preparations for implementing the extended settlement day on 20 June 2016 are on course, and residual risks are judged to be low. Representative bodies continued to report a satisfactory level of awareness amongst their members. Key direct participants in CHAPS and CREST were providing a self-attestation for their readiness to implement the change. The Bank, CHAPS Co and Euroclear UK and Ireland outlined their key activities in June, leading to the technical launch; contingency planned was also summarised. The Bank presented on planning for a review of benefits enablement and realisation.
 
June 2016 Forum: The Bank, CHAPS Co and Euroclear UK and Ireland reported that preparations for implementing the extended settlement day on 20 June 2016 are on course and residual risks had declined further and are judged to be low. Key direct participants in CHAPS and CREST had provided a self-attestation for their readiness to implement the change. On 3 June 2016, the Bank, CHAPS Co and Euroclear UK and Ireland had collectively taken a ‘go’ decision for implementation on 20 June, having considered a positive assessment against the project acceptance criteria. Key launch activities, including communications and contingency planning were summarised. Forum members did not identify any remaining concerns ahead of the planned implementation.
Share