Clearing House Interbank Payment System (CHIPS)
The aggregated (netted) transactions between counterparties are settled at the end of the trading day and then debited/credited through Fedwire. The netting allows banks to hold onto their capital during the day (instead of being debited instantly through Fedwire) allowing the transferring bank to earn interest. CHIPS is run by a private New York clearing house system. Often used to settle EURO transactions. Usually higher value payments than for Fedwire.
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http://en.wikipedia.org/wiki/Clearing_House_Interbank_Payments_System
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