BoE response to discussion paper on reviewing access to RTGS accounts for settlement

On 8 April, the Bank of England (BoE) has published its response to the discussion paper on reviewing access to Real-Time Gross Settlement (RTGS) accounts for settlement. In the discussion paper, initially published on 8 February 2024, the BoE requested for feedback on four priority areas to further improve access to settlement in central bank money, remove unwarranted barriers, and realise the capabilities and benefits of the renewed RTGS service. The feedback was generally supportive of the review and underpinned the importance of clear, transparent processes and criteria to facilitate access to RTGS accounts.

In response to the feedback received, the BoE sets out actions it has taken, including the following:

• An updated guide for non-bank payment service providers (NBPSPs) seeking direct access to UK payment systems.
• Issuing new rules on the BoE's expectations for RTGS participants, which were published in March, including eligibility criteria for the use of RTGS accounts for settlement and settlement services.
• An updated RTGS access policy which combines and updates access policies for settlement and omnibus accounts including settlement accounts, intraday liquidity, prefunding, and settlement services for payment system operators. The BoE has also introduced stage gates, as outlined in the policy, to assist applicants seeking RTGS access, including new and small financial market infrastructures (FMIs), to build confidence and capacity before launching full-scale operations, allowing applicants to test connectivity and grow their business in a controller manner subject to certain restrictions to mitigate risk. Depending on the circumstances, an applicant may go through none, one or both stages.

The BoE also sets out in its response its future policy plans on, providing safeguarding facilities to NBPSPs, continuing to work with the UK Financial Conduct Authority and HM Treasury on reforming the regulatory framework to facilitate direct access to RTGS, and on closely engaging with the industry on the CHAPS direct participation threshold review.

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