The Bank has recently commenced a multi-year Renewal Programme of the RTGS service, to enhance resilience and drive innovation.4  1  https://www.bankofengland.co.uk/research/fintech https://www.bankofengland.co.uk/research/future-finance 3 https://www.bankofengland.co.uk/news/2018/april/non-bank-psp-access-to-the-payments-system-announcement 4 See https://www.bankofengland.co.uk/payment-and-settlement/rtgs-renewal-programme and https://www.bankofengland.co.uk//media/boe/files/speech/2018/real-time-gross-settlement-rtgs-renewal-enabling-the-next-generation-ofpayments.pdf?la=en&hash=49E47B8951F6FD8D24E6307B36EDAFB7D214B4F5 for further details 2  2  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  2  CHAPS (Clearing House Automated Payment System) is one of the payment systems which settles over RTGS. It is the UK’s high-value payment system, used for wholesale payments and known to many of you for making house purchases, but also for a range of time-sensitive or cross-border corporate payments. Origins and use of CHAPS This month marks the first anniversary of the operation of the CHAPS payment scheme being brought into the Bank. But CHAPS is rooted in centuries of payments history. Payments systems in the UK grew out of the 1770s arrangement of clerks meeting at a tavern in the City of London and exchanging paper cheques over lunch. This was more efficient than each clerk walking around the city visiting other banks. By the end of the 19th century, around 200 years after the creation of the Bank, the operation of payment systems was formalised, with the establishment of the Bankers’ Clearing House, which was owned and controlled by the major retail banks. In 1985 following a series of reviews the Association of Payments Clearing Services (APACS) was created as an umbrella organisation for three clearing companies, including the CHAPS & Town Clearing Company.

Let’s not think of how we can reform, but how we can design. Let’s create a system that can better withstand the unforeseeable and the unpredictable. Conclusion These are difficult, complicated issues. But complexity doesn’t need to get in the way of getting back to principles or impede necessary action. Look no further to what we just accomplished with LIBOR. On January 1st, we are taking a giant leap in moving to a post-LIBOR world. That’s a monumental feat for financial market reform—and it was made possible by a significant, prolonged, and coordinated effort by the private and official sectors across the globe. With Treasury market reform, we must take the same approach of bringing together the best ideas from the public and private sectors. Three episodes of market dysfunction over the past decade are too many. Let’s work together to build a system that is truly resilient and can withstand the challenges of our time—and of the future. Thank you. 1 Recent Disruptions and Potential Reforms in the U.S. Treasury Market: A Staff Progress Report, Inter-Agency  Working Group for Treasury Market Surveillance, November 8, 2021. 2 For a history of the Desk statement on repo operations during that period, see Repo and Reverse Repo  Operations: Statements and Operating Policies. Details on the parameters of the repo operations during this 3/4  BIS central bankers' speeches  period can be found at Historical Repurchase Agreement Operational Details.