CHAPS Clearing Company, a UK-based high-value settlement provider, has announced that Northern Trust has joined its scheme as a shareholder and direct participant.

The move brings the number of CHAPS direct participants to 24, after Societe Generale joined the service in February.

According to CHAPS, its service settles high-value, time-dependent sterling payments securely in real-time, with around 80% of the £277bn processed daily by CHAPS representing wholesale financial transactions for international sterling flows.

David Wicks, regional head of enterprise operations for EMEA at Northern Trust, said: “As the industry continues to focus on security, transparency and accessibility for transactions, Northern Trust is pleased to become a Direct Participant in CHAPS. We look forward to engaging with the other participants and working to bring our clients greater efficiencies for their transactions.”

While only 24 firms hold direct participant status, the company processes sterling payments on behalf of more than 5000 institutions and individuals. These indirect participants process their payments through the 24 firms.

CHAPS has been working with the Bank of England in order to reduce the systemic risk posed by having a large number of indirect participants processing high values of payments via a small number of direct participants, introducing a system of tiering criteria.

It also has plans to expand its operations in response to increased demand and a review by the Bank of England, extending its operating hours from 4.20pm to 6pm from 20 June.