The Clearing House (TCH), responding to the recommendation of CHIPS participants, is rescheduling the CHIPS ISO 20022 implementation from November 2023 to April 2024.
The decision to move to a new implementation date is influenced by similar decisions from other global payments network providers whose ISO 20022 implementation calendars precede the CHIPS migration and have also been rescheduled. The new CHIPS migration date will allow CHIPS participants to better manage the global transition to ISO 20022 payment message formats by retaining sufficient timeframes between ISO migrations.
CHIPS is the largest private sector high-value clearing and settlement system in the world. TCH, the operator of CHIPS, remains committed to the ISO 20022 message format to enhance the efficiency of payments processing, to allow participants and end user customers to benefit from enriched data content and structured message formats, and to support the dollar as a global reserve and settlement currency. The message format conversion will therefore place CHIPS messages in the same ISO 20022 format as other global large high-value payment systems, substantially enhancing the efficiency and information content of cross-border payments.
Financial institutions in the U.S. and around the world rely on CHIPS to clear and settle USD payments reliably and with settlement finality. CHIPS is the premier USD clearing platform for international payment activity, with approximately 95% of CHIPS payments being the USD leg of a funds transfer that begins and/or ends in another country. CHIPS, which settles an average of $1.9 trillion in payments per day on a comparatively small funding base, also has the capacity and reach to satisfy every domestic high-value payment need.
The new migration date allows CHIPS participants to manage and absorb changes from ISO 20022 conversions in other jurisdictions, including TARGET2 and SWIFT in March 2023, and CHAPS in June 2023.