National Settlement Service

The National Settlement Service is a multilateral settlement service owned and operated by the Federal Reserve Banks. The service is offered to depository institutions that settle for participants in clearinghouses, financial exchanges and other clearing and settlement groups. Settlement agents, acting on behalf of those depository institutions in a settlement arrangement, electronically submit settlement files to the Federal Reserve Banks. Files are processed on receipt, and entries are automatically posted to the depository institutions' Federal Reserve Bank accounts. Entries are final and irrevocable when posted. The normal operating hours for the National Settlement Service are 8:30 a.m. to 5:00 p.m., ET. Files submitted prior to 8:30 will be queued for processing at the opening.

Discover how the National Settlement Service can benefit your financial institution

  • Reduces the duration of settlement risk for participants in private-sector clearing arrangements by providing same-day finality.
  • Permits the automated submission of settlement files through FedLine Advantage® or a computer interface connection.
  • Provides you with national settlement capability via standardized processes as settling participants may be located in any Federal Reserve District.
  • Improves operational efficiency by eliminating the need to send individual Fedwire funds transfers.
  • Learn more about the National Settlement Service by viewing the product sheet (PDF)

To start using this service, visit National Settlement Service Setup or contact your account executive.

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