Clearing House Interbank Payments System - CHIPS
- Clearing House Interbank Payments System - CHIPS
- The primary clearing house in the U.S. for large banking transactions. CHIPS settles over 250,000 of trades per day, valued in excess of $1 trillion. CHIPS and the Fedwire funds service used by the Federal Reserve Bank combine to constitute the primary network in the U.S. for both domestic and foreign large transactions denominated in U.S. dollars.
CHIPS differs from the Fedwire transaction service in several respects. First and foremost, it is cheaper than the Fedwire service, albeit not as fast, and the dollar amounts required to use this service are lower. It is also privately owned by member banks and has only 46 members (as of 2006), compared to the approximately 50,000 members that use the Fedwire service. Finally, CHIPS acts as a netting engine, where payments between parties are netted against each other instead of the full dollar value of both trades being sent.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Clearing House Interbank Payments System — ( CHIPS) An international wire transfer system for high value payments operated by a group of major banks. The New York Times Financial Glossary * * * Clearing House Interbank Payments System ˌClearing House ˌInterbank ˈPayments ˌSystem , CHIPS… … Financial and business terms
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Clearing House Interbank Payments System — The Clearing House Interbank Payments System (CHIPS) is the main privately held clearing house for large value transactions in the United States, settling well over US$1 trillion a day in around 250,000 interbank payments. Together with the… … Wikipedia
Clearing House Interbank Payments System — CHIPS A US bankers clearing house for paying and accepting funds. It is an electronic system operated through terminals in bank branches. Participating banks must be members of the New York Clearing House Association or affiliates of it, for… … Accounting dictionary
Clearing house (finance) — A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions. These transactions may be executed on a futures exchange or securities exchange, as… … Wikipedia
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CHIPS — See Clearing House Interbank Payments System. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010. CHIPS … Law dictionary
CHIPS — An ISO term. (Clearing House Interbank Payments System) A private telecommunications payment service operated by the New York Clearing House Association for banks in the New York area, which handles US dollar payments only … International financial encyclopaedia
