Federal Reserve Banks

Federal Reserve Announces Plan to Develop a New Round-the-Clock Real-Time Payment and Settlement Service to Support Faster Payments

 

On August 5, the Federal Reserve Board announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States. The rapid evolution of technology presents a pivotal opportunity for the Federal Reserve and the payment industry to modernize the nation’s payment system and establish a safe and efficient foundation for the future. The Federal Reserve believes faster payment services, which enable the near-instantaneous transfer of funds day and night, weekend and weekdays, have the potential to become widely used and to yield economic benefits for individuals and businesses by providing them with more flexibility to manage their money and make time-sensitive payments. Release.

CFTC Announces Measures to Enhance Protection of Customer Funds

 

On August 8, 2016, the U.S. Commodity Futures Trading Commission (CFTC) announced three separate enhancements relating to the protection of customer funds. The new protections address the exemption of certain Federal Reserve Banks from liability under the Commodity Exchange Act, as well as the use of money market funds by derivatives clearing organizations and futures commission merchants. Press Release.

The Fed Approves New Fee Schedules

On October 31, the Fed announced new fee schedules, effective January 2, 2014, for payment services the Federal Reserve Banks provide to depository institutions (priced services).  The effective fees for the Reserve Banks’ Check 21 services are expected to decline 2%.  The effective fees for the Reserve Banks’ FedACH® service will decline marginally.  The effective fees will increase about 8% for Fedwire® Funds and National Settlement Services and decrease about 1% for Fedwire® Securities Service.  The Board also approved a modest increase to FedLine® access fees.  Fee schedules for all priced services will be available on the Federal Reserve Banks’ financial services website.   Notice.   Proposed Rule.

Fed Final Rule to Simplify Reserve Requirements and Reduce Costs

On April 5, the Fed issued a final rule to simplify the administration of reserve requirements and reduce administrative and operational costs for depository institutions and Federal Reserve Banks. Release.  Reg D Amendment Final Rule.  Reg J Amendment Final Rule.