06 April 2010

Shortened operating hours of the RTGS system

On 25 May 2010, the operating hours of the Real-Time Gross Settlement (RTGS) system will be shortened, and the system will be closed at 16:30 hrs. on business days. After 24 May 2010, financial institutions that are members of the system shall block RTGS payments from their customers as of 16:15 hrs. on business days. Concurrent with this change, settlement in the netting system will be moved forward and will take place upon the closing of the RTGS system, at 16:30 hrs.

After this change, all full members of the system will have until 16:45 hrs. on business days to conclude internal settlement and to eliminate debit balances in the system (the previous deadline was 18:00 hrs.).

Participants are encouraged to acquaint themselves thoroughly with the rules, prepare new procedures, and inform their customers of the changed closing hours.

Particular attention is drawn to the fact that the effective date of the change is 25 May 2010, and not 1 May 2010, as was previously intended and announced by the Central Bank on 12 March 2010.

For further information, see: Amendments to Article 6 of Rules no. 703/2009 and Article 6 of Rules no. 704/2009. Further information on the changed opening hours can be obtained from the Financial Stability Department of the Central Bank of Iceland.

See the amended rules here:

Rules amending the Rules on Activities of Netting Systems (pdf)

Rules amending the Rules on the Central Bank of Iceland RTGS system (pdf)