Clearing House Automated Transfer System
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
- ^ "Financial Services" (PDF). Information Services Department, Hong Kong SAR. 2007. Retrieved 2008-09-15.
{{cite web}}: Unknown parameter|month=ignored (help) - ^ "RTGS Payment Systems". Hong Kong Trade Development Council. 2006-07-06. Retrieved 2008-09-15.
- ^ 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.
- ^ "Real Time Gross Settlement System". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.
- ^ "USD Clearing System in Hong Kong". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.
- ^ "Euro Clearing System in Hong Kong". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.
- ^ "News in 2007". Hong Kong Interbank Clearing Limited. Retrieved 2008-09-15.