ABA Supports Fed Single-Day Migration to New Message Format, Concerned About Lack of Detail

The American Bankers Association told the Federal Reserve on Monday that it supports a plan to migrate to a new message format, ISO 20022, on a single day but said it has “serious concern” regarding the lack of detail about the plan. ABA requested that the Fed provide a detailed implementation plan as soon as possible to allow banks to develop their own internal teams and allocate resources.

Specifically, the association asked for a “technology roadmap” that establishes a series of key dates and milestones related to the system requirements and testing procedures. With a launch date less than 24 months away, “it is important that the industry progress through these milestones should be transparent to all participants,” ABA said.

A single-day switch should happen no earlier than November 2023, ABA told the Fed, adding that it should launch on the same day as the change is made at the private sector wire clearing service CHIPS, operated by the Clearing House.