Update on New ALD Collateral Requirements Timeline

The Federal Reserve is extending the dual file submission period for “in-scope” institutions that are required to submit newly formatted ALD collateral reports. The dual file submission requirement, which applies to select “in-scope” institutionswas previously expected to last 18 months.  As was previously announced, the dual file submission requirement will end once the testing and calibration of margins and internal fair market value estimates are completed and new collateral margins are announced, which was anticipated to occur at the end of this year.  However, in response to COVID-19 and redirecting staff to support emergency lending facilities, the Federal Reserve is extending the implementation date and the dual file submission requirement.  While a new implementation date is not being announced at this time, the Federal Reserve anticipates announcing the new implementation date sometime in the first half of 2021.

At this time, the Federal Reserve is also providing additional changes to the previously published data definitions document.  These changes are intended to assist “in-scope” institutions with understanding the requirements for the new ALD collateral reports and are based on questions received and common issues identified during file remediation. For additional information on the New ALD collateral reports please reference the April 2019 collateral bulletin.

Institutions should contact the discount window and payment system risk staff at their Reserve Bank for further questions.