What is CIPS? CIPS Review, Features

CIPS RMB Cross-Border Payment System is responsible for the development, operation and maintenance of the RMB Cross-Border Payment System (CIPS system), and carries out participant services, product innovation, standard construction and market expansion.

About CIPS (Cross-Border Interbank Payment System)

The Cross-Border Interbank Payment Clearing Co., Ltd. (CIPS Co., Ltd., referred to as the Cross-Border Clearing Company) is subject to the supervision, management and guidance of the People's Bank of China. In accordance with the relevant institutional rules such as the "RMB Cross-Border Payment System Business Rules", "RMB Cross-Border Payment System Business Operation Guidelines" and "RMB Cross-Border Payment System Participant Service Agreement", it provides RMB cross-border payment clearing services, data processing services, information technology services and other related businesses entrusted by investors to domestic and foreign financial institutions and other institutions permitted by the People's Bank of China, as well as other businesses and services approved by the People's Bank of China.

In order to adapt to the development needs of cross-border RMB business, meet the global market's demand for RMB asset allocation, better serve the international use of RMB, and demonstrate my country's continued opening-up of finance, the People's Bank of China approved the Cross-Border Clearing Company to increase capital and expand shares in March 2018, and introduce foreign investors. In July 2018, 36 Chinese and foreign institutions signed a joint capital increase agreement. On December 3, 2019, the Cross-Border Clearing Company held its first shareholders' meeting and board of directors meeting in Shanghai, and has since entered a new stage of development, opened a new chapter of development, and embarked on a new journey of development.

Features

1. Enrich settlement modes

Introducing a scheduled net settlement mechanism based on the real-time gross settlement model to achieve a hybrid settlement mechanism with more economical liquidity and meet the differentiated needs of participants;

2. Support financial market business

According to the fund settlement needs of different financial transactions, the system can support RMB payment, payment delivery (DvP) settlement, RMB vs. foreign currency simultaneous settlement (PvP), central counterparty centralized clearing and other cross-border RMB transaction settlement services;

3. Extend the system's external service time

The system operation time is extended from 5×12 hours to 5×24 hours + 4 hours, fully covering the financial markets in all time zones around the world, fully considering the local RMB business needs of overseas participants and their customers, and supporting same-day settlement;

4. Expand the types of direct participants

Introduce direct participants in financial market infrastructure, clarify the entry conditions for different types of participants, and make institutional and business preparations for the introduction of more foreign direct participants;

5. Further improve message design

Increase message types and scalability, optimize message field definitions, and facilitate compliance management for participants and relevant departments;

6. Build a CIPS system backup system

Real-time data replication from the main system to the backup system is achieved, improving the business continuity capability of the CIPS system.