CHIPS Extends Working Hours for Asian Market
US Clearing House CHIPS has expanded its processing hours to allow participating financial institutions to increase convenience and maximize liquidity for customers operating in the global marketplace. The new extended day will allow CHIPS operating hours to overlap the business day in Asia. ‘The new extended hours for CHIPS provide our clients in Asia with greater control over their business and cash flow as they can now receive their U.S. dollar payments during Asian business hours rather than having to wait until the next day,’ said Anthony Nappi, Asia Cash Management Head, Citigroup Global Transaction Services. Until this development, CHIPS maintained the best option for clearing U.S. dollars in Asia was through small private clearing arrangements with local banks. However, these often settled the next day, creating an inefficient use of liquidity.