Federal Reserve Bank Services — 1994-02-24 [94-3847]

The Board has approved an expansion of Fedwire funds transfer operating hours for the public policy benefits that will result through the use, over the long term, of the service by banks individually and through clearing groups. The Board believes that the potential, long run benefits from offering final payment capabilities that will strengthen interbank settlements outweigh the costs to the Federal Reserve of expanding the Fedwire funds transfer service operating hours. Over time, longer Fedwire funds transfer hours can contribute to reductions in Herstatt risk through innovations in payment and settlement practices. As well, the Fedwire funds transfer service will become a tested tool for managing settlement risk early in the day during times of financial stress. Specifically, the Board is announcing that the hours of operation of the Fedwire on-line funds transfer service will be expanded to 18 hours per day, opening at 12:30 a.m. e.t. and closing at 6:30 p.m.