Circular
Policy and Operational Implications of Morning-of-Settlement-Day Finality for ACH Credit Transactions
December 28, 1998
Circular No. 11122

Comments Requested by March 18

To All Depository Institutions, and Others Concerned, in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has requested comment on the benefits and drawbacks of providing settlement finality on the morning of the settlement day for ACH credit transactions processed by the Federal Reserve.

If the Board were to provide morning-of-settlement-day finality for ACH credit transactions, it would adopt risk control measures equivalent to those used in the Fedwire funds transfer and enhanced settlement services, which would have similar finality characteristics. The Board is interested in commenters' views on the policy and operational implications of such risk control measures.

Comments are requested by March 18, 1999.

The Board's official notice on this matter, as published in the Federal Register of December 18, is available as a file (pdf - 32kb).Comments should be submitted to the Board, as specified in the notice, or, at this Bank, to Henry F. Wiener, Vice President, Electronic Payments.