The Bank now has responsibility for end-to-end risk management for CHAPS including relationships with CHAPS direct participants, and clearer lines of responsibility and integrated governance, enhancing financial stability in the UK. The first glimpse of the new dawn: ISO 20022 – improving payment messaging June next year will be the first step in the UK’s migration to ISO 20022. Its implementation is a foundational step that will enable many of the future changes that are coming, both domestically in the renewal of RTGS and internationally including enhancing cross border payments. Payment messages are the vehicles for transactional data in the payments world. They provide a common data model and a set of rules for exchanging critical information for a transaction to take place for everything from consumer payments to corporate treasury operations. Increasingly used by payment systems across the world, many other key Payment System Operators are also on the journey to implement ISO 20022 including the ECB’s TARGET2 and the Federal Reserve’s Fedwire. In addition, starting in late 2022 SW IFT’s correspondent banking network will retire the use of the existing MT standard by November 2025 and mandate ISO 20022. ISO 20022 will bring enhanced data deliver significant long-term benefits for not only the UK’s payment systems but participants and their customers. It provides flexibility to adapt to changes in the economy, emerging technologies and innovation. It provides international harmonisation, supporting cross-border payments.
1 UK Finance Payments Market Summary 2021Opens in a new window 2 UK Finance Payments Market Summary 2019Opens in a new window 3 Innovation to serve the public interest – speech by Andrew Bailey City at City UK Annual Conference June 2021 4 Bank of England Discussion Paper: New Forms of Digital Money June 2021 5 Bank of England announce Joint CBDC Taskforce with HMT 2021 6 Bank of England publishes policy for omnibus accounts in RTGS 7 RTGS Renewal Programme Industry Engagement 8 RTGS Renewal Blueprint 2017 9 An Interactive Guide to Global PaymentsOpens in a new window 10 FSB Enhancing Cross-border Payments Stage 3 Report 2020 Opens in a new window 11 FSB Targets for Addressing the Four Challenges of Cross-Border Payments: Consultative document  2021Opens in a new window 12 G7 Finance Ministers and Central Bank Governors CommuniqueOpens in a new window  6/6  BIS central bankers' speeches