The Federal Reserve is proposing to expand the operations of the Fedwire Funds Service and the National Settlement Service to include weekends and holidays, so both would be available every day of the year. Currently, both payments services operate Monday through Friday, excluding holidays. In its announcement, the Fed said that expanding the times of operation of both would “support the safety and efficiency of the U.S. payment system and help to position the nation’s payment and settlement infrastructure for the future,” but acknowledged there could be drawbacks.
“For example, potential benefits of expanding operating days include improving the credit risk and operational efficiency of systemically important financial market utilities and private-sector retail payment arrangements, spurring innovation in new or enhanced private-sector payment solutions, and supporting more efficient cross-border payments flows,” the Fed said. “On the other hand, it would also require operational and technical changes that would impose costs.”
The Fed is also proposing to expand the operating hours of NSS to close 30 minutes earlier than Fedwire, which is open from 9 a.m. to 7 p.m. ET. The Fed is not considering expanding operating hours for Fedwire. The changes would be implemented at least two years after the migration of Fedwire to the ISO 20022 standard, scheduled for March 2025. The Fed is seeking public comment on the proposal, with a deadline of 60 days after publication in the Federal Register
