TCH’s CHIPS Network Now Has Longer Operating Hours

The CHIPS network from The Clearing House now accepts new payment messages as late as 6 p.m. Eastern Time effective Monday (March 8) instead of the previous 5 p.m. EST deadline, according to an announcement.

“This extension in operating hours will allow CHIPS to support more late-day payment activity, including West Coast volume, and will allow CHIPS participants to experience the benefits of liquidity savings deeper in the operating day,” Richard Dzina, senior vice president, The Clearing House, said in the announcement.

A poll of CHIPS participants found a great deal of support for lengthening operating hours, and the CHIPS Business Committee gave the green light for the change. The Clearing House said the extension represents a key move in supporting bigger strategic ambitions to run CHIPS 24 hours a day, seven days a week.

Financial institutions (FIs) domestically and internationally depend on CHIPS to reliably clear and settle payment in U.S. dollars with “settlement finality,” according to the announcement. CHIPS is the biggest private-sector USD clearing and settlement system globally, settling an average of $1.8 trillion in payments daily on a “comparatively small funding base.”

Moreover, the organization says that the CHIPS patented liquidity savings algorithm matches and nets payments, creating a very efficient settlement process. Currently, CHIPS’ liquidity efficiency is 27:1, signifying that $1 in funding contributed to the network supports nearly $27 in settled value, with most payments settling in just seconds.

In addition, The Clearing House says that CHIPS is the “premier USD clearing platform for international payment activity.” To that end, the organization says that about 95 percent of CHIPS payments have a cross-border leg.

The news comes on the heels of PNC Bank joining the CHIPS network to let it “clear and settle high-value and cross-border payments,” according to a press release.

The Clearing House runs U.S.-based payment networks to clear and settle via automated clearing house (ACH), wire, check image and instant payments.