The Bank of England Central Gilts and Moneymarkets Office
The Bank of England’s Central Gilts & Moneymarkets Office (CGMO) is the operator of the domestic real time payments system .
Following the Securities Settlement Priorities Review in September 1998, both the Central Gilts Office (CGO) and the Central Moneymarkets Offfice (CMO) are now owned and operated by Euroclear UK & Ireland Limited (formerly CRESTCo).
Real Time Gross Settlement (RTGS)
In April 1996, the UK Clearing Banks switched to a new electronic system for settling same day sterling payments. Payments are processed through the Clearing House Automated Payment System (CHAPS) individually and continuously during the day in real time. Previously, payments were processed as a single net transaction at the end of the day.
With the advent of the euro in January1999 a real-time cross border payment system was needed in order to provide the payment procedures necessary for implementing the single monetary policy and to promote sound and efficient payment mechanisms in the EU. This was achieved by linking euro RTGS systems in all the EU central banks with each other and with the ECB to create the TARGET system. Accordingly the UK RTGS system was developed to accommodate euro accounts (CHAPS Euro) so that members could make domestic and cross-border euro payments.
3 July 2000
