Real-time gross settlement statistics [C7]

C7 Real-time Gross Settlement Statistics

Real-time Gross Settlement (RTGS) means that transactions are settled individually using credit balances in financial institutions’ Exchange Settlement Accounts (ESAs) at the Reserve Bank. RTGS commenced from 22 June 1998 after a seven-week phase-in period; prior to that date, transactions were settled on a net basis at 9.00 am on the next business day.

Transactions initiated in three systems are settled on an RTGS basis via the Reserve Bank Information and Transfer System (RITS). These systems are: the SWIFT Payment Delivery System (PDS), a cash transfer system; Austraclear, an electronic registry and securities settlement system for semi-government and private sector debt securities, and Commonwealth Government securities (CGS) from 25 February 2002; and RITS, which serves as Australia’s RTGS system, and also served as an electronic registry and settlement system for CGS prior to 25 February 2002. The SWIFT PDS and Austraclear are often referred to as ‘feeder systems’ to RITS because interbank settlement details of transactions in these systems are fed into RITS for settlement.

Data for ‘RITS’, the ‘SWIFT PDS’ and ‘Austraclear’ exclude intrabank transactions (i.e. transactions that do not require interbank settlement because the counterparties to the transactions have the same settling Member). These are shown separately for information where the transactions are passed to RITS for processing of automated advices to the paying Member. Also excluded from RITS figures are payments associated with non-callable deposits, registry interest and maturities, ESA interest and, prior to June 2012, the Reserve Bank's government direct entry obligations.

‘RITS’ and ‘Austraclear’ figures include both cash transfers and securities transactions, including interest and maturity payments, but exclude intraday repurchase transactions with the Reserve Bank.

‘Intraday repos’ show the total funds obtained from the Reserve Bank via intraday repurchase transactions involving both CGS and non-CGS (first leg of transactions only). In November 2013 new RITS liquidity arrangements were introduced utilising ‘Open Repo’ transactions (not shown in this table - see Table A3), and consequently the value and volume of intraday repos declined significantly. From May 2015, the 'Value of intraday repos' series is subject to a three-calendar-month publication lag for statistics that directly disclose aggregate usage of the Reserve Bank's standing facilities.

‘Intrabank’ transactions are where the paying and receiving Member are the same and the transactions are sent to RITS for processing of information advices to the paying Member.

’Batch settlement’ figures show transactions arising from settlement of low-value clearing obligations on a multilateral net basis (including the 9.00 am batch) and batches submitted for settlement using the batch feeder facility.

Further information on RITS, and the transactions settled on a RTGS basis, is available on the Reserve Bank website at <https://www.rba.gov.au/payments-and-infrastructure/rits/about.html>).

On 13 February 2018, the New Payments Platform (NPP) was publically launched. The Reserve Bank's Fast Settlement Service (FSS), a new service of RITS, provides real-time gross settlement of each NPP payment obligation on a 24/7 basis using ESA funds.

'Number of interbank FSS payments' and 'Value of interbank FSS payments' figures measure the average daily payment obligations settled in the FSS between NPP participants that are not part of the same financial group. The data series exclude 'intrabank transactions', payments between indirect NPP participants who process their payments with the same direct NPP participant, the movement of ESA funds between RITS and the FSS (Allocation Transfers) used to fund Members' FSS ESAs, and unsettled payments. The total number and value of all interbank and intrabank payments cleared through the NPP are shown in Table C6.

Further information about the FSS and the NPP is available on the Reserve Bank website <https://www.rba.gov.au/payments-and-infrastructure/new-payments-platform/>, and on the NPP Australia Limited (NPPA) website <https://www.nppa.com.au/>.