To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a press release, the Federal Reserve Board requested comment on a proposal to expand the operating hours for the on-line Fedwire® Funds Service.
Under the proposal, the Fedwire® Funds Service would open at 9:00 p.m. eastern time (ET), three and one-half hours earlier than the current opening time of 12:30 a.m. ET. The closing time for the service would remain unchanged at 6:30 p.m. ET. The earlier opening time is expected to further the smooth functioning and continued development of the payments system, as well as to improve efficiency and reduce risk in making payments and settlements.
If the proposal is adopted, the suggested timeframe for full implementation of the expanded operating hours is the second quarter of 2004.
The Board invites commenters' views on the proposed opening time of 9:00 p.m. ET and on the business, market, risk management, and operational issues that should be considered in evaluating the benefits and drawbacks of a longer Fedwire® day.
The Board's notice is attached.