To All Depository Institutions, and Others Concerned, in the Second Federal Reserve District:
The following is from the text of a statement issued by the Board of Governors of the Federal Reserve System:
The Federal Reserve Board has approved a December 8, 1997 effective date to open the Fedwire funds transfer service at 12:30 a.m. Eastern Time (ET). The current operating hours of the Fedwire funds transfer service are 8:30 a.m. to 6:30 p.m. ET. The closing time of the Fedwire funds transfer service remains unchanged.
Previously, the Board determined that expansion of the Fedwire funds transfer service to 18 hours per day could be a useful component of private-sector initiatives to reduce settlement risk in the foreign exchange markets and to eliminate an operational barrier to potentially important innovation in privately provided payment and settlement services. Participation in the earlier Fedwire operating hours is voluntary for depository institutions.
In conjunction with the expansion of Fedwire operating hours, the Board also has approved a modification to the daylight overdraft posting times to fix at 8:30 a.m. ET the posting time for certain non-wire transactions that are tied to the current opening time of the Fedwire funds transfer service.
The text of the Board's official notice, as published in the Federal Register of November 6. Questions on this matter may be directed to Andrew Heikaus, Assistant Vice President, Electronic Payments Function.