Introduction

CHAPS is a sterling payments scheme that processes and settles both systemically-important and time-dependent payments.  The scheme is run by CHAPS Clearing Company, which manages day-to-day operations.

Launched on 9 February 1984, the CHAPS scheme provides a guaranteed same-day service for the bank-to-bank transmission of sterling-denominated payments. Since 1996, CHAPS has used an enhanced real-time gross settlement (RTGS) system where each individual payment is settled in real-time across its members’ settlement accounts at the Bank of England.

CHAPS continues to be one of the largest RTGS systems in the world, offering an efficient, risk-free and reliable same-day payments mechanism to meet the sterling RTGS payment requirements of its 18 members as well as over 350 financial institutions that also make CHAPS payments and settle through agency arrangements with the direct members. CHAPS is mainly used for high-value interbank and business-to-business payments, although individuals may also send CHAPS payments to buy or sell a high-value item, such as a house or car.

Nearly £62 trillion was processed through the system in 2010. As of 25 July 2011 the total value processed since the start of CHAPS exceeded one quadrillion (£1,000,000,000,000,000) pounds.

CHAPS Clearing Company Board works to maintain the integrity, efficiency and security of CHAPS payments as well as developing company strategy, identifying opportunities for innovation and continuing to extend its membership and reach.