Fed Proposes Changes to Form FR 2420

The Federal Reserve recently proposed changes to Form FR 2420, a daily report of money market transactions — including federal funds purchased, certain time deposits and Euro dollar liabilities — that will used by the Fed to calculate the federal funds rate.

The Fed proposed to lower the asset threshold from $26 billion to $15 billion for domestic financial institutions to report on FR 2420, although it said it is open to exempting “institutions that meet the asset size threshold but that demonstrate that they have an ongoing business model that results in a negligible amount of activity in these markets.”

The proposal would also require institutions with assets of $5 billion or more that meet certain fed funds activity requirements to report while raising the asset threshold for U.S. branches of foreign banks to $2.5 billion. Comments are due on June 8. For more information or to share feedback, please contact ABA’s Alison Touhey.