Last month

  • In January 2017, CHAPS processed 3.3 million payments worth £6.6 trillion over 21 settlement processing days.
  • The average daily volume was 155,357, an increase of 4.5% from January 2016.
  • The average daily value was £313 billion, an increase of 5.2% from January 2016.

Last year

  • In 2016 CHAPS volumes grew by 3.8% to a record 39.0 million; on average 154,006 a day.
  • The total value transmitted in CHAPS in 2016 grew by 10.5% to a record £75.6 trillion, on average £299 billion daily. 
  • This surpassed the previous CHAPS records for both volume (37.5 million payments in 2015) and value of pounds sterling (£73.6 trillion in 2008). 
     

CHAPS in context

  • CHAPS represents 0.5% of UK total payment volumes but 92% of total sterling payment values (excluding internalised flows within Payment Service Providers).
  • CHAPS turns over the annual UK GDP every 6 working days.

 

Market effects

  • The value of sterling processed in CHAPS has increased significantly from mid-2015 onwards, and in 2016 it surpassed levels last seen during the 2008 financial crisis. Most of the value derives from wholesale financial transactions (75%).
  • CHAPS value usually increases in times of uncertainty. Part of the recent growth reflected volatile financial markets. These responded to geopolitical events such as the result of the UK referendum on membership of the EU (Brexit) in June 2016. Actual and potential interest rate changes can increase volatility, and the Bank of England cut interest rates from 0.5% to 0.25% in August 2016. In the second half of 2016, volume and value growth (daily average, versus previous year) was slightly above the first half of the year. 
  • Some of the earlier value growth in late 2015 resulted from some large corporates engaging directly in foreign exchange trading and other financial markets. This brought to CHAPS bilateral settlements that were previously netted by their financial providers, as well as the supporting corporate treasury activity. 
  • Volume effects from the housing market: CHAPS saw a record peak volume period at the end of March 2016, in advance of changes to the Stamp Duty Land Tax. Thereafter from May onwards there was negative growth in the value range in CHAPS that includes most of its housing market-related payments. Volumes were higher than the previous year only during a period 4-8 weeks after the EU referendum (by 3%), suggesting completions of property sales agreed in immediate reactions to the result. 

     

 

CHAPS Values for the previous 12 months

 

CHAPS Volumes for the previous 12 months