National Settlement Service
The National Settlement Service is a multilateral settlement service offered to depository institutions with Federal Reserve Bank master accounts that settle for participants in clearinghouses, financial exchanges and other clearing and settlement arrangements.
How the National Settlement Service works
A settlement agent, acting on behalf of depository institutions that settle for participants in specific clearing arrangements, electronically submits settlement files containing debit and credit entries to be posted to depository institution master accounts. Settlement files are processed on receipt, and settlers benefit because the debits and credits are final and irrevocable.
Discover how the National Settlement Service can benefit your financial institution
Key benefits of the service:
- Settlement of interbank obligations in central bank money
- Intraday finality that reduces the duration of settlement risk
- Better efficiency by eliminating the need for separate Fedwire® Funds Service messages
- Automated submission of files through the FedLine Advantage® Solution or FedLine Direct® Solution