Forex Software http://www.getforex.org Honest Reviews of theTop 3 Forex Software Programs Thu, 19 Apr 2012 11:57:21 +0000 en hourly 1 Chaps Payment: Is Chaps the key to financial stability? http://www.getforex.org/chaps-payment-is-chaps-the-key-to-financial-stability.html http://www.getforex.org/chaps-payment-is-chaps-the-key-to-financial-stability.html#comments Wed, 07 Mar 2012 08:56:44 +0000 admin http://www.getforex.org/?p=225 According to the Bank of England (BOE), if more banks were to make use of the Clearing House Automated Payment system (Chaps) it would improve the country’s financial stability. Currently only 18 of the main banks and larger building societies in the UK are ‘direct’ members of Chaps but there are over 400 ‘indirect’ members that have access to the system through an affiliation with a ‘direct’ member. More than half of all payments processed through Chaps are made on behalf of ‘indirect’ banks. Chris Salmon, Chief Cashier and Director of Banking Services at BOE said that ‘such a large number of ‘indirect’ banks accessing the Chaps payment system every day through ‘direct’ members creates a ‘tiering’ system that poses a threat to the stability of the UK financial sector.’

The BOE is currently in talks with a number of financial institutions to increase participation in the Chaps payment system and help reduce risk to the UK’s financial stability. In the past, smaller banks have shied away from signing up to Chaps due to the high cost of membership fees and ongoing IT upgrades. However, with a decrease in overall costs, Chaps is now more affordable for smaller banks.

Chaps are one of the largest real-time gross settlement (RTGS) systems in the world. Banks, businesses and individuals regularly use Chaps to move money around the financial system, for forex exchange services, business-to-business payments and other high value purchases that require an urgent, same-day guaranteed payment. Utilising Chaps makes managing business cash flow or international money transfer simple by providing a quick, secure and efficient payment service from one bank to another.

Another important feature of Chaps payments settled in RTGS are Continuous Linked Settlement (CLS) payments. CLS is the forex exchange settlement system that was introduced in 2002 to eliminate forex exchange settlement risk in participating currencies

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