What is the Future Roadmap for RTGS
The new core ledger and settlement engine for delivery in early 2025 will provide a strong foundation on which to build further functionality. Beyond this, we will benefit from this flexibility to continuously evolve the RTGS service to make sure it meets the changing needs of the industry, in responding to immediate issues and in making strategic enhancements.
Our vision is for the RTGS to act as an open platform for the UK financial services industry and to facilitate safe and efficient settlement in central bank money.
Following industry feedback, the Bank issued a response to its 2022 consultation which set out three key priority areas for further work: new ways to connect to RTGS, a synchronisation interface, and extended RTGS operating hours.
Table A: Feature |
Summary |
Resilient channels |
New ways of accessing RTGS (via another network or APIs) would strengthen resilience and reduce reliance on third parties for settlement. More choice for connectivity would make direct access in CHAPS more economical. Improved connectivity and other enhancements would improve the usability of our contingency for settlement. |
Extended RTGS operating hours |
Extending RTGS operating hours would improve efficiencies for domestic and cross-border payments. It would create opportunities for quicker payments, innovations such as synchronisation and interlinking, and better customer experiences. It would improve liquidity management and reduce settlement risk. |
Synchronisation |
A synchronised settlement interface would allow RTGS to interoperate with other ledgers (e.g. overseas RTGS and other assets such as land registers) and technologies. Synchronisation would reduce settlement risk and liquidity costs for a wide range of markets. |
We are now working closely with industry as part of co-creation to assess business cases and define high level design of priority features before deciding which features to implement and in what order.
Progressing priority features would help achieve the benefits we have set out. We have also published information on the wider benefits that RTGS Renewal will enable.
Co-creation with industry
Understanding the needs of RTGS users is essential in shaping and delivering future RTGS services in a way that promotes competition, innovation and value for money.
In May 2023, we launched a co-creation process to enable current and prospective users of RTGS and other relevant stakeholders to input into high-level design features and to help inform business case analysis. Co-creation includes:
- Three dedicated thematic engagement groups.
- Bilateral engagement and use of more general forums.
- Surveys, discussion and/or consultation papers.
The Strategic Advisory Forum is acting as a cross-feature strategic roadmap delivery forum. It provides strategic advice across all future roadmap features. Considering the analysis completed by thematic groups and the developments in the payments landscape, the forum advises on the demand, timelines and sequencing of features, and the business cases for priority features from a strategic perspective.
Dedicated co-creation thematic engagement groups
The industry co-creation engagement groups help support and advise the Bank on business cases, speed and sequencing of priority features in the Roadmap. These groups play an advisory role, with final decisions on implementing the features in the Roadmap taken by the Bank. The Bank will consider the industry and user input alongside public policy considerations and other prioritisation factors when taking decisions on delivering features as part of the Roadmap.
The three thematic engagement groups are:
- Resilient channels – includes new ways to connect to RTGS (via an additional network or payment application programming interface (APIs)) and enhancing our settlement contingency. These features share the common theme of removing a single point of failure from the payments ecosystem while creating new opportunities for innovation in networking infrastructure.
- Extended RTGS operating hours – includes assessing business cases and the demand for extending operating hours to different end-states.
- Synchronisation – includes assessing business cases for providing synchronised settlement and exploring further policy and design questions relating to the practical implementation of this functionality in RTGS. Synchronisation allows linking transfer of two assets in a way that one asset moves if and only if the other asset moves.
Figure 1 and Table B provide further information about co-creation forums.
The co-creation process for the current prioritised features began in May 2023. We will then take stock of the analysis completed and review our approach (including considering whether any new forums would be required) as we move towards delivering features.
Figure 1: Overview of co-creation forums
Co-creation principles
We are using the following principles to ensure effective industry engagement:
- Focused: we have formed carefully targeted working groups to tackle a set of specific priority questions.
- Representative: we have sought to ensure diverse representation of a range of current and potential future users of RTGS.
- Transparent: we are communicating regularly with a wide group of industry stakeholders (including those who may not directly participate in the co-creation groups). We invite (but not require) wider input on a ‘little and often’ basis.
- Accountable: we will publish the summary of the analysis and advice developed as part of co-creation engagement groups. We will invite wider industry scrutiny and views before we take decisions on new features.
Overview of co-creation groups
Table B: Feature |
Group outcomes |
Group member type |
Terms of reference |
Resilient channels |
|
|
|
Extended RTGS operating hours |
|
|
Terms of reference for extended operating hours co-creation group |
Synchronisation |
|
|
Related publications
- On 8 February 2024, the Bank published two discussion papers. One considering the future extended operating hours of RTGS (including CHAPS) and one sharing outcomes from a review of RTGS access policies. The two papers are the basis for further research and dialogue with the private sector on these important topics.
- The Bank consulted with industry on RTGS beyond 2024 in 2022, with the aim was to seek industry views on what features they would like to see investment in for the next stage of roadmap for RTGS beyond 2024.
- The response to the RTGS beyond 2024 consultation was issued in 2023 and set out the priority features and next steps.