BoE publishes RTGS outage report: BoE has published the independent report on the disruption caused to the Real Time Gross Settlement (RTGS) system on 20 October 2014. The review found:
- defects in the course of functionality changes in April 2013 and May 2014 were the root cause of the incident;
- all submitted payments (total value of £289.3 billion) settled within the day’s operating hours (which were extended until 20:00) and substantive risks to financial stability, financial loss or long-term damage to the economy were avoided as a result of a plan to resolve the problems;
- the outage caused inconvenience to RTGS participants and their customers – most notably a delay to some housing transactions; and
- the incident has highlighted the need for BoE to further consider the contingency solutions for RTGS, as well as the future development of the system. In addition it highlights the need to strengthen BoE’s crisis management framework.
At the time, BoE apologised to those who were affected, and implemented a compensation scheme which has settled nine claims, totalling around £4,060, for costs incurred. BoE also published its response to the report, in which it accepted all of the review’s recommendations and set out how it intends to implement each of them. (Source: BoE Publishes Independent Review of RTGS Outage)