Large value payments industry

These payments are between banks that participate in a currency’s central settlement system – usually operated by a central bank. They involve a transfer from an account in one bank to an account in another bank – settled through the banks’ accounts in the system.


Size of the market

For instance, for the RIX system in Sweden: in 2015, an average of 17 000 payments were settled per bank day and the average turnover was about SEK 430 billion per bank day.

For CLS, during 2015, CLS settled foreign exchange transactions equivalent to an average value of EUR 4,000 billion per banking day.


Roles and examples of actors


Schemes and their operators

TARGET2/EURO1 (Europe, Eurozone), RITS (Australia), STR (Brazil), LVTS (Canada), Kronos (Denmark), Boj-Net (Japan), HVCS (New Zealand), MEPS+ (Singapore), RIX (Sweden), CHAPS (United Kingdom), Fedwire / CHIPS (United States), Continuous Linked Settlement, etc.

An example is CLS (Continuous Linked Settlement). CLS works to reduce settlement risk in foreign exchange transactions by ensuring that both currencies in such transactions change owner at the same time, regardless of time zones. The Federal Reserve is the supervisory authority responsible for CLS and is chair of the CLS oversight committee, which includes representatives of the central banks for all 18 currencies settled in CLS.


Participating banks



An institution obtains access to the a large value settlement system either by participating directly in the system or by employing an existing participant who makes payments on the institution’s behalf.