We also work closely with colleagues in the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR), who have relationships with  4  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  4  CHAPS participants and a shared interest in the operation of the payments chain. A recent example is the July 2018 Discussion Paper, ‘Building the UK Financial Sector’s Operational Resilience’, which the Bank, PRA and FCA published together. We are increasingly working with supervisory colleagues to:   Identify and manage risks to and from the payments function for the Direct and Indirect Participants that they supervise; and    Deploy expert cyber resources in order to manage the threats posed to the CHAPS system. It goes without saying that, the RTGS Renewal Programme is also putting resilience at the heart of its design and scope. Widening access to CHAPS and RTGS In addition we are working to improve access to CHAPS and to RTGS. In 1987, CHAPS only had 14 direct participants - a number which remained broadly unchanged twenty years later in 2007. This created increased risk to financial stability through operational reliance on a small number of banks, creating credit exposures between Direct and Indirect Participants (who could only access CHAPS via a Direct Participant). In response, the Bank took three steps to facilitate direct access to CHAPS: De-tiering. In 2011 the Bank identified the six largest indirect participants8 who presented a systemic risk through indirect access.

Both forums involve attendees from a 9 10  Information on members of the RTGS/CHAPS Board can be found at https://www.bankofengland.co.uk/payment-and-settlement https://www.bankofengland.co.uk/financial-stability/financial-market-infrastructure-supervision 6  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  6  range of organisations to ensure input and challenge from a diverse range of stakeholders across the payments landscape, from the major, established banks through to innovative Fintechs and end-users. Looking ahead to RTGS Renewal This is an important time for the UK payments industry. In addition to the RTGS Renewal Programme, Pay.UK11 is working to build a New Payments Architecture for retail payments. There are synergies between these programmes and while we operate independently we are working closely to ensure that we co-ordinate where there are benefits to doing so, and where this will best support the payments industry. An example of our close cooperation is planning the introduction of messaging standards based on ISO 20022. The Bank and Pay.UK are working together on the introduction of a Common Credit Message (CCM) for CHAPS, Faster Payments Service (FPS) and Bacs. The Bank published a joint consultation with Pay.UK and the Payment Systems Regulator (PSR) in June.12 This set out how we propose to develop the new messaging standards to create a harmonised language for retail and wholesale payments in the UK. We will shortly be publishing our response to that consultation, which will set out our next steps. We have also created the Standards Advisory Panel (SAP)13.