Fed proposes expanding large-value payments service operations

The Federal Reserve Board requested comment on a proposal to expand the operating days of the Federal Reserve Banks' two large-value payments services.

Details: The proposal would:

• Extend Fedwire Funds Service and National Settlement Service operations to include weekends and holidays, so they would operate every day of the year.

• Keep operating hours the same, with Fedwire open 22 hours per day and NSS open 21.5 hours per day.

• Allow voluntary use of the expanded operating days by banks and credit unions.

• Take place no sooner than 2027.

Next: Comments on the proposal will be accepted up to 60 days after publication in the Federal Register.

Background:

• The Fedwire Funds Service is a wholesale payment service that allows service participants to send and receive individual electronic funds transfers up to $10 billion.

• The NSS is a settlement service for participants in private-sector clearing arrangements, such as check clearinghouses and securities settlement systems.

• The services currently operate Monday through Friday, excluding holidays.