Federal Reserve Bank Services — 1995-01-03 [94-31979]

In February 1994, the Board approved the expansion of the Fedwire on-line funds transfer service operating hours to 18 hours a day, from 12:30 a.m. to 6:30 p.m. Eastern Time (ET), beginning in early 1997. Currently, the Fedwire funds transfer service operates 10 hours a day, from 8:30 a.m. ET to 6:30 p.m. ET. The Board has delayed the implementation of the expanded Fedwire on-line funds transfer operating hours until fourth quarter 1997 to provide banks that intend to participate during the expanded hours an opportunity to first complete their conversion to the new Fedwire format. The Board believes a modest delay in the implementation of the earlier Fedwire opening time will be sufficient to address industry concerns regarding the interdependencies between the two Fedwire initiatives, while not deferring for a significant period of time the potential changes in payments and settlement practices that can contribute to reductions in Herstatt risk.