CHIPS is the largest private sector USD clearing system in the world, clearing and settling $1.8 trillion in domestic and international payments per day.
CHIPS provides fast and final payments and the most efficient liquidity savings mechanism available today. Its patented algorithm matches and nets payments resulting in an extremely efficient clearing process.
This large value payment system has more than 40 participants and is the private-sector counterpart to Fedwire.
Assessing the Efficiency of CHIPS: FNA Simulation Prepared for The Clearing House
The liquidity savings mechanism utilized by CHIPS, the largest private sector high-value clearing and settlement system in the world, generates powerful liquidity savings for CHIPS participants and the financial system. An independent review of CHIPS conducted by FNA, a technology firm that specializes in advanced network analytics and simulation, found that CHIPS is “extremely efficient” in its use of liquidity across all performance metrics.
To learn more, download the study: Assessing the Efficiency of CHIPS®
CHIPS Liquidity Savings Mechanism is the Most Efficient in the World
This study describes how CHIPS is highly efficient in its use of liquidity when compared to other major payment systems around the world, and effectively serves as the liquidity savings mechanism for the entire U.S. large-value payments system. It also underscores the nature of CHIPS as an early settlement system that reduces operational risk for participants, end users, and the financial system generally, and distinguishes CHIPS as a critical element of the nation’s payments infrastructure.
To learn more, download the study: The Use of Liquidity in CHIPS®