Fedwire® Services and National Settlement Service Extension Guidelines
Under certain conditions, depository institutions and/or NSS settlement agents may request an extension to the Fedwire Funds Service, National Settlement Service and/or Fedwire Securities Service operating hours. An extension may be granted only if:
- There is a failure of Federal Reserve Bank and/or Fedwire network equipment; or
- There is a significant operating problem at a bank or major dealer; and as a result,
- The Federal Reserve Bank of New York (or its designee) determines the extension is necessary to prevent a significant market disruption.
In order for an extension to be granted, requests must:
- Be timely:
- at least 15 minutes prior to the close of the Fedwire Funds Service for extensions to the Fedwire Funds Service; or
- at least 15 minutes prior to the close of the National Settlement Service for extensions to the National Settlement Service; or
- at least 20 minutes prior to the close of the Fedwire Securities Service for extensions to the Fedwire Securities Service.
- Meet dollar threshold demonstrating a risk of significant market disruption:
- The dollar value of delayed transfers must exceed $1 billion.
Operational changes as a result of a Fedwire Funds Service extension:
- During a Fedwire Funds Service extension, the Fedwire Securities Service repositioning window may be shortened from 30 minutes to 15 minutes after the close of the Fedwire Funds Service.
Depository Institution Responsibilities
- Inform your designated Wholesale Operations Site as soon as a significant operating problem arises that may result in an extension request.
- Be prepared to use back-up procedures to avoid the need for an extension.
- If a problem is likely to result in an extension request, inform the Federal Reserve Banks at (866) 895-5985 as soon as possible and explain:
- the problem in detail,
- the expected time needed to resolve it and
- the dollar amount and number of transactions that need to be sent.
- Request extensions in a timely manner.
Federal Reserve Banks' Responsibilities
- Grant extensions to prevent significant market disruptions.
- Strive to maintain a two-hour window between the close of the Fedwire Funds Service on one cycle date and the opening of the Fedwire Funds Service on the next cycle date. However, the Federal Reserve Banks may decide to open or close the Fedwire Funds Service at an earlier or later time to facilitate special market needs.
- Communicate information related to extensions to customers:
- Send a broadcast message providing notification of:
- the extensions to the closing times of the Fedwire Funds Service, National Settlement Service, and/or the Fedwire Securities Service;
- the final closing time of the service that was extended; and
- the opening time of the service if it will be delayed for the following cycle date.
For more information about the Fedwire Funds Service, National Settlement Service or the Fedwire Securities Service, visit the service offerings pages or contact your account executive.
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