CHIPS has expanded its processing hours to more closely align with the business days across the globe. Financial Institutions with large value payment customers across the continents can now offer payment processing with more convenience and a better use of liquidity, CHIPS said.
The new extended day will allow CHIPS operating hours to overlap the business day in Asia. For the first time, on Sunday night, May 16, CHIPS extended its processing day to 20 hours by opening at 9 pm and remaining open until 5 pm the next day.
“The new extended hours for CHIPS provide our clients in Asia with greater control over their business and cash flow as they can now receive their US dollar payments during Asian business hours rather than having to wait until the next day,” said Anthony Nappi, Asia Cash Management Head, Citigroup Global Transaction Services.
In the face of increasing globalization, businesses operate 24 hours a day on every continent, CHIPS pointed out. Until now, the best option for clearing U.S. dollars in Asia has been through small private clearing arrangements with local banks, which often settle the next day, creating an inefficient use of liquidity, it said.
“We have seen an increase in our Asian business recently. Our new extended hours will allow our Asian customers to receive the same benefits of real-time finality and rock solid reliability during their business day, something that our customers in Europe and the Americas already enjoy,” said John Mohr, CHIPS Chief Operating Officer.
For 34 years, The Clearing House Interbank Payments System (CHIPS), an affiliate of The Clearing House, has been the industry standard for clearing U.S. dollar payments for most of the largest banks around the globe. CHIPS maximizes a bank’s liquidity as a multilateral netting system — $1 is used 500 times in a day — while enjoying payment finality of an RTGS (real-time gross settlement system. CHIPS’ extended hours of operation and payment finality are enhancements that maintain CHIPS as the international standard for processing large value payments, the company said.