CHIPS,  the high-value payment system from TCH 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.
Here from Jamie McAndrews, an economic consultant, and he is the CEO of TNBUSA Inc., and Richard Dzina, Senior Vice President, at The Clearing House, discuss how CHIPS more efficiently uses liquidity, which is a benefit not only to the banks on the CHIPS network, but also to the entire high-value payment system in the United States.