WASHINGTON—Credit unions are being reminded they can submit feedback on the Federal Reserve’s request for comment on expanding the Fedwire Funds Service and National Settlement Service (NSS) operating hours proposal.
The proposal would change the operating hours for both services to 22 hours per day, seven days per week, 365 days of the year. Also, under the proposal, the NSS would close 30 minutes earlier than the Fedwire Funds Service.
The Key Points
America’s Credit Unions offered an overview of the effects the proposal would have on credit unions and outlined key points for consideration, including:
- Participation in the expanded hours would be voluntary and will improve the speed of final funds availability, but will also correspond with additional weekend staffing costs
- The expanded operating hours could allow check clearinghouses, the ACH network, and other instant payment services that leverage the Fedwire Funds Service and/or NSS to have broader options for settlement of time-critical payments
- Credit risk may be reduced by the expanded operating hours due to the narrowed time gap between the creation of payment obligations and the discharge of those obligations in final funds
- Expanded hours might also spur new or enhanced private-sector payment solutions that leverage the Fedwire Funds Service and/or NSS or enable market trading and lending activity that previously could not be supported during weekend hours
The deadline for comment submission is June 24.
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