Continuous Linked Settlement:
RITS Session Times and Operational Arrangements – July 2015
8. Implications for Non-CLS Banks
8.1. Evening Settlement Session and End of Day Arrangements
It is not mandatory for banks to operate in the Evening Settlement Session. Each bank must consider its own business circumstances and the potential for payments to it to be delayed due to settlement of FX transactions in CLS during the evening.
Banks are reminded that new SWIFT payments to and from non-Evening Agreed banks will be rejected if they are received by RITS after the end of the SWIFT Day Session (normally 16:30).
These banks should have completed all SWIFT payment activity[1] and contacted the Reserve Bank's Domestic Markets dealing room if they plan to reverse any intraday RBA Repos after the end of the Settlement Close Session.
Non-Evening Agreed banks are able to enter new inter-bank RITS and Austraclear transactions in the Evening Settlement Session. However, this would require the agreement of the counterparty to enter the transaction in that session.
End of day reports are available to non-Evening Agreed banks after the 17:15 close.
8.2. Access to CLS for Non-settlement Members
Banks that are not settlement members of CLS may settle FX through CLS via a CLS settlement member as a third party.
An agent bank providing a third party settlement arrangement for AUD for another ESA holder would agree operational arrangements with that appointing bank.
8.3. Other Arrangements Using an Agreed Bank
Banks wishing to use another bank as their agent to receive RTGS payments during the Evening Settlement Session may apply to the Reserve Bank and APRA under the terms of the RBA's Exchange Settlement Account Policy (https://www.rba.gov.au/payments-system/esa/).
If you have any questions about the matters outlined in this paper, please contact The Senior Manager, Business Policy and Services, Payments Settlements Department (02 9551 8941) or The Manager Business Analysis, Business Policy and Services, Payments Settlements Department on (02 9551 8966).
Footnote
Note section 3.1. All SWIFT payments to or from a non-evening agreed bank that have not settled by the end of the Settlement Close Session will be deleted from the System Queue in the Interim Session, and cannot be re-entered as SWIFT PDS payments in the Evening Settlement Session. Evening Settlement Session bank-to-bank RITS/Austraclear transactions involving a non-evening agreed bank should be entered after the end of the Settlement Close Session. [1]