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Prior to the launch of CHATS as a RTGS system, interbank settlements in Hong Kong relied on a multi-tier system which settled in a daily net basis. About 170 banks settled with 10 banks. These 10 banks, in turn, settled with [[Hongkong Bank]], which then settled with the HKMA in a one-to-one basis. Hongkong Bank acted as the [[Clearing house (finance)|clearing house]] under this system, settling payments across its books in a net basis on the day following the transactions. The HKMA decided that this did not meet international standards as set by [[G10]]'s Committee on Payment and Settlement Systems; following a six-month feasibility study, in June 1994, it decided to develop CHATS as a RTGS system.<ref name="NormanChan">{{cite web|url=http://www.info.gov.hk/hkma/eng/speeches/speechs/norman/speech_110697b.htm|title=Hong Kong - CHATS|author=Norman T.L. Chan, Deputy Chief Executive of Hong Kong Monetary Authority|publisher=Hong Kong Monetary Authority|date=1997-06-11|accessdate=2008-09-15}}</ref>
Prior to the launch of CHATS as a RTGS system, interbank settlements in Hong Kong relied on a multi-tier system which settled in a daily net basis. About 170 banks settled with 10 banks. These 10 banks, in turn, settled with [[Hongkong Bank]], which then settled with the HKMA in a one-to-one basis. Hongkong Bank acted as the [[Clearing house (finance)|clearing house]] under this system, settling payments across its books in a net basis on the day following the transactions. The HKMA decided that this did not meet international standards as set by [[G10]]'s Committee on Payment and Settlement Systems; following a six-month feasibility study, in June 1994, it decided to develop CHATS as a RTGS system.<ref name="NormanChan">{{cite web|url=http://www.info.gov.hk/hkma/eng/speeches/speechs/norman/speech_110697b.htm|title=Hong Kong - CHATS|author=Norman T.L. Chan, Deputy Chief Executive of Hong Kong Monetary Authority|publisher=Hong Kong Monetary Authority|date=1997-06-11|accessdate=2008-09-15}}</ref>


After two years of development, CHATS for Hong Kong dollars was launched on 9 December 1996.<ref name="HKD">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=102&lang=en|title=Real Time Gross Settlement System|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref> CHATS for US dollars and euros were launched on 21 August 2000 and 28 April 2003, respectively.<ref name="USD">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=119&lang=en|title=USD Clearing System in Hong Kong|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref><ref name="euro">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=578&lang=en|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref> In July 2007, the Regional CHATS Payment Services was also launched to link all participants in the three different CHATS versions for transactions involving currency exchange.<ref name="HKICLNews">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=2&lang=en|title=News in 2007|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref>
After two years of development, CHATS for Hong Kong dollars was launched on 9 December 1996.<ref name="HKD">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=102&lang=en|title=Real Time Gross Settlement System|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref> CHATS for US dollars and euros were launched on 21 August 2000 and 28 April 2003, respectively.<ref name="USD">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=119&lang=en|title=USD Clearing System in Hong Kong|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref><ref name="euro">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=578&lang=en|title=Euro Clearing System in Hong Kong|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref> In July 2007, the Regional CHATS Payment Services was also launched to link all participants in the three different CHATS versions for transactions involving currency exchange.<ref name="HKICLNews">{{cite web|url=http://www.hkicl.com.hk/clientbrowse.do?docID=2&lang=en|title=News in 2007|publisher=Hong Kong Interbank Clearing Limited|accessdate=2008-09-15}}</ref>


==References==
==References==

Revision as of 01:57, 16 September 2008

Clearing House Automated Transfer System, or CHATS, is a Real Time Gross Settlement (RTGS) system for the transfer of funds in Hong Kong. It is operated by Hong Kong Interbank Clearing Limited, a private company jointly owned by the Hong Kong Monetary Authority and the Hong Kong Association of Banks. Transactions in three currency denominations may be settled using CHATS: Hong Kong dollar, euro, and US dollar.[1] In 2005, the dollar amount of Hong Kong dollar CHATS transactions averaged HK$467 billion per day, which amounted to a third of Hong Kong's annual Gross Domestic Product (GDP); the total volume of transactions that year was 84 times the GDP of Hong Kong.[2]

History

Prior to the launch of CHATS as a RTGS system, interbank settlements in Hong Kong relied on a multi-tier system which settled in a daily net basis. About 170 banks settled with 10 banks. These 10 banks, in turn, settled with Hongkong Bank, which then settled with the HKMA in a one-to-one basis. Hongkong Bank acted as the clearing house under this system, settling payments across its books in a net basis on the day following the transactions. The HKMA decided that this did not meet international standards as set by G10's Committee on Payment and Settlement Systems; following a six-month feasibility study, in June 1994, it decided to develop CHATS as a RTGS system.[3]

After two years of development, CHATS for Hong Kong dollars was launched on 9 December 1996.[4] CHATS for US dollars and euros were launched on 21 August 2000 and 28 April 2003, respectively.[5][6] In July 2007, the Regional CHATS Payment Services was also launched to link all participants in the three different CHATS versions for transactions involving currency exchange.[7]

References

  1. ^ "Financial Services" (PDF). Information Services Department, Hong Kong SAR. 2007. Retrieved 2008-09-15. {{cite web}}: Unknown parameter |month= ignored (help)
  2. ^ "RTGS Payment Systems". Hong Kong Trade Development Council. 2006-07-06. Retrieved 2008-09-15.
  3. ^ Norman T.L. Chan, Deputy Chief Executive of Hong Kong Monetary Authority (1997-06-11). "Hong Kong - CHATS". Hong Kong Monetary Authority. Retrieved 2008-09-15.
  4. ^ "Real Time Gross Settlement System". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.
  5. ^ "USD Clearing System in Hong Kong". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.
  6. ^ "Euro Clearing System in Hong Kong". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.
  7. ^ "News in 2007". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.
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