6.1 Liquidity Savings Mechanism
The functionality and user interface of the Liquidity Savings Mechanism will be enhanced. Improved real-time data and analysis will be available to help inform liquidity management decisions. An enhanced offsetting algorithm will enable greater liquidity efficiency.
6.2 Settlement models
The new system will include updated features like automated notifications, increased information exchange capacity and the option to forward schedule movements between accounts in RTGS. It will have the capacity to support a diverse range of settlement models, including systems operating on innovative payment technologies, such as those built on Distributed Ledger Technology (DLT).
We are exploring demand for ‘synchronisation’ functionality - the ability to synchronise cash movements in RTGS with the movement of cash or assets in other systems. We are exploring functionality where a trusted third party "Synchronisation Operator" could earmark and order the transfer of funds between participating institutions’ accounts in RTGS once required conditions have been met. Potential use cases include housing transactions, corporate actions and cross-border payments.
The renewed RTGS service will be built to accommodate a substantial increase in the number of account holders. This will influence the design of the new service – for example the process to join RTGS will be simpler, including streamlining the testing required for CHAPS joiners.
6.5 Non-bank PSPs
Non-bank payment system providers (PSPs) are now eligible to access RTGS settlement accounts (subject to meeting appropriate standards of resilience). The first non-bank PSPs opened settlement accounts in RTGS in 2018. Intra-day liquidity is not available to non-banks PSP users of RTGS. Download the Bank’s policy on access to RTGS for non-bank PSPs.
Since January 2018 CHAPS members have the option to connect to the service through a technical aggregator. The aggregator provides connectivity services but does not hold an account at the Bank of England.