Fedwire Securities - Payment System Risk Policy Changes
January 31, 2006
Source: Federal Reserve Financial Services
January 31, 2006
Fedwire Securities - Payment System Risk Policy Changes
The Federal Reserve Banks' policy statement on Payment System Risk is being modified, effective July 20, 2006. These changes will impact the processing of interest and redemption payments for securities issued by government-sponsored enterprises (GSEs) and certain international organizations. In conjunction with the policy changes, affected issuers
will likely adjust their funding and payment patterns since they will no longer be permitted to incur an overdraft position in their Federal Reserve Bank accounts for purposes of funding interest and redemption payments.
Specifically, these changes will impact:
- The number of interest and redemption payments your institution will receive.
- The dollar amount of each individual payment.
- The time of day payments are made.
Policy
Change Press Release
Complete
Policy Statement