[Federal Register Volume 90, Number 219 (Monday, November 17, 2025)]
[Notices]
[Pages 51356-51368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19942]


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FEDERAL RESERVE SYSTEM

[Docket No. OP-1870]


Federal Reserve Action To Expand Fedwirer[supreg] Funds Service 
and National Settlement Service Operating Hours

AGENCY:  Board of Governors of the Federal Reserve System.

ACTION:  Service Announcement.

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SUMMARY:  The Board of Governors of the Federal Reserve System (Board) 
is announcing that the Federal Reserve Banks (Reserve Banks) will 
expand the operating hours for the Fedwirer Funds Service to 22 hours 
per day, 6 days per week, operating Sunday through Friday, including 
weekday holidays (22x6).\1\ The Board is also announcing a 
corresponding expansion of the National Settlement Service's (NSS) 
operating hours to 21.5 hours per day, 6 days per week, operating 
Sunday through Friday, including weekday holidays, with NSS closing 30 
minutes earlier than the Fedwire Funds Service. The Board expects the 
Reserve Banks to implement this expansion in 2028 or 2029 to ensure 
technological, operational, and industry readiness. The decision to 
expand operating hours is intended to support a wide range of payment 
activities, as well as the U.S. dollar's key role in global commerce 
and the international financial system. Further, the planned expansion 
to 22x6 operating hours will serve as an interim step and provide the 
necessary foundational capability for the Reserve Banks to expand 
operating hours up to 22x7x365 in the future. The Board will monitor 
industry demand and will stand ready to offer an additional expansion 
up to 22x7x365 no sooner than two years after the Reserve Banks 
implement 22x6 operations. If the Board does propose to expand 
operating hours beyond 22x6, it will seek public comment in a separate 
proposal.
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    \1\ ``Fedwire'' is a service mark of the Federal Reserve Banks. 
References to ``22x6'' herein also refer to the corresponding 
expansion of NSS, unless the context indicates otherwise.
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    In addition, the Federal Reserve is exploring whether to expand 
discount window operating days in connection with the expansion of the 
Fedwire Funds Service. As part of this exploration, the Federal Reserve 
plans to conduct additional outreach to stakeholders to ensure it fully 
understands the benefits and costs of expanded discount window 
operations for institutions of various sizes.

FOR FURTHER INFORMATION CONTACT: Mark Magro, Manager, Division of 
Reserve Bank Operations and Payment Systems; Aaron Compton, Lead 
Financial Institution Policy Analyst, Division of Reserve Bank 
Operations and Payment Systems; or Corinne Milliken Van Ness, Senior 
Counsel, Legal Division: (202) 452-3000. For users of text telephone 
systems (TTY) or any TTY-based Telecommunications Relay Services, 
please call 711 from any telephone, anywhere in the United States.

SUPPLEMENTARY INFORMATION:

I. Introduction

    This notice is organized into five sections. Section I contains 
background information on the Federal Reserve's role in the payment 
system, a summary of the 2024 Federal Register notice proposing to 
expand Fedwire Funds Service and NSS operating hours to 22x7x365 (the 
2024 Notice), and a summary of comments received in response to the 
2024 Notice.\2\ Section II

[[Page 51357]]

discusses the planned actions, which take into consideration comments 
submitted in response to the 2024 Notice. Section III assesses the 
planned expansion's compliance with the requirements of the Monetary 
Control Act of 1980 (MCA) and the Board's criteria for new services and 
major service enhancements. Section IV contains high-level 
implementation details and considerations for expanding Fedwire Funds 
Service and NSS operating hours. Section V is a competitive impact 
analysis of the expansion of the Fedwire Funds Service and NSS 
operating hours to 22x6.
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    \2\ 89 FR 39613 (May 9, 2024). The Fedwire Funds Service is 
currently open from 9:00 p.m. eastern time (ET) of the preceding 
calendar day to 7:00 p.m. ET, five days per week, Monday through 
Friday excluding holidays observed by the Reserve Banks. NSS is open 
from 9:00 p.m. to 6:30 p.m. ET, five days per week, Monday through 
Friday excluding holidays observed by the Reserve Banks. The Federal 
Reserve has historically provided at least 30 minutes between the 
close of NSS and the close of the Fedwire Funds Service, recognizing 
that the Fedwire Funds Service is the primary alternative for 
orderly and efficient settlement of bilateral obligations in case a 
settlement arrangement is unable to complete its multilateral 
settlement through NSS.
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A. Background

    The Federal Reserve has a long-standing policy objective to foster 
a safe and efficient U.S. payment system. The Federal Reserve advances 
its objectives for the payment system in part through the Reserve 
Banks' operation of two large-value payment services: the Fedwire Funds 
Service and NSS.\3\ The Fedwire Funds Service is a real-time gross 
settlement (RTGS) service that allows participants to send and receive 
individual funds transfers up to one penny less than $10 billion in 
value. Settlement of payments over the Fedwire Funds Service is 
immediate, final, and irrevocable. NSS is a multilateral settlement 
service that allows for immediate, final, and irrevocable settlement of 
obligations that arise from private-sector clearing arrangements, such 
as check clearinghouses, a private-sector automated clearinghouse (ACH) 
network, and securities settlement systems.\4\ Together, these 
services, alongside a large-value payment service operated by the 
private sector, provide the backbone for the nation's payment system 
and support a significant amount of economic activity in the United 
States, including large-value domestic financial market transactions, 
the U.S. dollar leg of many cross-border transactions, and private-
sector payment clearing arrangements.\5\
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    \3\ The Fedwire Funds Service supports large-value payments 
(frequently referred to as ``wholesale'' payments). The majority of 
the value is sent via bank-to-bank transfers, while the majority of 
the volume is sent via third-party or ``customer'' transfers, which 
are sent by Fedwire participants on behalf of their customers (for 
example, corporations, consumers, and nonbank financial 
institutions). The average value of a payment in 2024 on the Fedwire 
Funds Service was $5.4 million, and the median value was 
approximately $18,000.
    \4\ Settlement files submitted to NSS can be for an amount up to 
one penny less than $10 trillion; each entry in a settlement file 
can be for an amount up to one penny less than $100 billion.
    \5\ The private-sector large-value payment service is 
CHIPS[supreg], which is owned and operated by The Clearing House 
Payments Company L.L.C. (TCH). ``CHIPS'' is a registered service 
mark of TCH.
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    The Federal Reserve has consistently improved its payment services 
to meet the evolving needs of the U.S. economy. As technological 
advancements and globalization of commerce continue to drive change in 
the large-value payment landscape, the Board believes that expanding 
the availability of the Fedwire Funds Service and NSS will enhance the 
safety and efficiency of the U.S. payment system by extending the hours 
in which settlement in risk-free central bank money can occur.\6\
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    \6\ Central bank money is a liability of the central bank that 
can be used for settlement purposes and is considered free of credit 
and liquidity risks. Central bank money has traditionally taken two 
forms: cash and reserve balances held by eligible financial 
institutions at the central bank.
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B. 2024 Federal Register Notice on Potential Federal Reserve Action

    In May 2024, the Board published a request for comment on a 
proposal to expand the operating hours of the Fedwire Funds Service and 
NSS. In the 2024 Notice, the Board requested comment on the benefits, 
risks, and implementation considerations of expanding the operating 
hours of the Fedwire Funds Service to 22 hours per day, 7 days per 
week, every day of the year (22x7x365) and to correspondingly expand 
the operating hours of NSS, with NSS closing 30 minutes earlier than 
the Fedwire Funds Service.\7\ The public comment period for the 2024 
Notice closed on September 6, 2024, following a 60-day extension of the 
original comment period.
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    \7\ References to 22x7x365 herein also refer to the 
corresponding expansion of NSS, unless the context indicates 
otherwise.
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    In its 2024 Notice, the Board explained the potential benefits, 
costs, risks, and other considerations related to expanded hours for 
the Fedwire Funds Service and NSS. In particular, the Board noted how 
expanded hours might improve the safety and efficiency of both domestic 
and global large-value U.S. dollar payments, spur new or enhanced 
private-sector payment solutions, and increase times available for 
settlement of large-value consumer and business payments in central 
bank money. The Board also recognized that expanded hours would result 
in greater overlap and reduced gaps in the operating hours for the 
Fedwire Funds Service and NSS and key large-value payment services in 
other jurisdictions. The Board explained that greater overlap with the 
operating hours of other RTGS systems could in turn support more-
efficient cross-border payments and would be consistent with the 
actions of other central banks that are expanding or considering 
expanding the operating hours of their large-value payment services.
    The Board recognized in the 2024 Notice the need to weigh the 
potential benefits of expanded hours against the potential costs and 
risks. The 2024 Notice explained that expanded hours would impose costs 
on both the Reserve Banks and institutions that participate in the 
Fedwire Funds Service and NSS due to operational and technical changes. 
These costs would vary by institution, depending on the level of 
changes and staffing needed to support such a change. The 2024 Notice 
also noted that expanded hours could potentially exacerbate liquidity 
outflows over the weekend and holidays--including for banks under 
stress--and sought comment on the need for discount window operations 
to support expanded hours.
    The 2024 Notice sought comments on a number of topics relating to 
the benefits, costs, and risks of expanding the Fedwire Funds Service 
and NSS operating hours. For example, the Board sought information on 
the primary sources of demand for expanded hours, the incremental costs 
associated with expanded hours, and market conditions or barriers that 
might affect adoption of expanded hours. The Board also sought 
information about how expanded hours could support innovation and 
potential future uses of the Fedwire Funds Service and NSS, whether 
commenters might prefer an interim expansion of operating hours, 
timelines for implementation, and anticipated liquidity needs in an 
expanded hours environment. The Board also asked how the ability for 
participants to opt out of expanded hours might introduce benefits and 
challenges and how the initiative to expand operating hours should be 
considered in light of other enhancements or initiatives related to the 
Fedwire Funds Service and NSS. The following section summarizes 
commenters' views on these questions and on the Board's proposal in the 
2024 Notice.

C. Summary of Comments

    The Board received 145 comment letters in response to the 2024 
Notice.

[[Page 51358]]

Comments were submitted by a wide variety of stakeholders in the U.S. 
payment system, comprising respondents from 37 states and corresponding 
to the following market segments: small and mid-size banks, large 
banks, individuals, trade organizations, service providers, financial 
market utilities (FMUs), fintech companies, private-sector operators, 
and other interested parties.\8\ Overall, banks were the largest group 
of respondents, submitting more than half of the comment letters. In 
addition, a number of trade organizations submitted letters on behalf 
of constituents in several industry segments, including small and 
midsize banks, large banks, payments associations, fintech companies, 
capital markets participants, businesses, and professional 
associations.
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    \8\ ``Banks'' include any type of depository institution, such 
as commercial banks, savings banks, savings and loan associations, 
and credit unions. ``Service providers'' are entities, such as core 
payment processors, that provide payment services, processing, or 
operational and technical support to financial institutions. 
``Financial market utilities'' are multilateral systems that provide 
the essential infrastructure for transferring, clearing, and 
settling payments, securities, and other financial transactions 
among financial institutions or between financial institutions and 
those systems. ``Private-sector operators'' are entities that 
operate payment systems, such as the operator of the current 
private-sector RTGS services for large-value and instant payments, 
and payment card networks. For the purposes of this notice, a 
``small bank'' is defined as having assets of less than $10 billion 
and a ``large bank'' is defined as having assets of more than $50 
billion, while a ``midsize bank'' is defined as having assets 
between $10 billion and $50 billion.
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1. Benefits, Costs, and Risks
    Certain commenter segments expressed clear preferences on the 
proposal to expand operating hours to 22x7x365 based on their 
particular needs and circumstances in the payment system. Most notably, 
a large majority of respondents from large banks, financial market 
utilities, service providers, and fintech organizations supported the 
proposal because of the benefits outlined in the Board's 2024 Notice. 
On the other hand, a large majority of small to midsize banks and 
individuals did not support the proposal, noting that costs and 
challenges related to staffing, operational changes, and competitive 
pressure from large banks, among other considerations, would outweigh 
any benefits from the proposal. The perspectives of trade organizations 
generally reflected the views of the industry segments that they 
represent. Trade organizations associated with large banks, financial 
professionals, fintech firms, and payments associations were supportive 
of the proposal and represented the majority of trade organization 
comments. Trade organizations representing small institutions generally 
were not in favor of the proposal, although some of these organizations 
indicated that certain implementation approaches could help alleviate 
challenges. Some trade organizations presented varied opinions based on 
disparate views within their membership, such as contrasting views 
among banks of different sizes.
    The following subsections summarize themes that commenters raised 
with respect to the benefits, costs, and risks presented by the 
proposal. The Board's response to these themes can be found in sections 
II, III, and IV.
a. Impact on the U.S. Large-Value Payment System
    Many commenters from large banks, fintech firms, and other groups 
representing financial market stakeholders stated that the proposal 
would improve safety, efficiency, and innovation in both the domestic 
and global markets for large-value U.S. dollar payments. These 
commenters viewed expansion of Fedwire Funds Service and NSS operating 
hours to 22x7x365 as a worthwhile investment to modernize the U.S.'s 
large-value payment infrastructure, support the evolution of markets, 
and address the growing expectations of consumers and businesses in a 
global economy that operates continuously across time zones. Some 
commenters from institutions of various sizes suggested that large or 
globally active corporations and financial institutions would likely 
have substantially greater demand and use cases for expanded hours in 
the near term compared with small institutions. Further, a number of 
commenters from large banks, trade organizations representing financial 
institutions, private-sector operators, and fintech firms remarked that 
the potential benefits associated with expanded operating hours would 
depend on whether banks choose to participate in expanded hours.\9\
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    \9\ Other commenters noted that alignment with other systems and 
markets is key to fully realizing the benefits envisioned in the 
Board's proposal.
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b. Benefits for Cross-Border Payments
    Many commenters from various segments, particularly trade 
organizations and firms that are active in global payments markets, 
thought that the proposal would support greater speed and efficiency in 
cross-border U.S. dollar payments, such as payments related to 
international trade, commerce, and foreign exchange. In particular, 
these commenters said the Board's proposal would support new settlement 
opportunities for the U.S. dollar leg of cross-border payments on 
weekend days and U.S. holidays when other international markets and 
large-value payment systems are open. Some of these commenters 
anticipated weekend demand for cross-border U.S. dollar payments to 
international markets that operate Sunday-Thursday, including a number 
of markets in the Middle East. Commenters also noted potentially 
significant demand for cross-border U.S. dollar payments on weekday 
holidays, given that these are regular business days in a wide range of 
international markets. Finally, a number of commenters in this group 
indicated that expanded hours would help maintain U.S. competitiveness 
in cross-border payment networks and would support the role of the U.S. 
dollar as the preferred currency for global settlement, particularly as 
other payment systems are expanding their operating hours in numerous 
jurisdictions across the world.
c. Benefits, Costs and Risks for Domestic Payments
    In addition to the international considerations for expanded hours, 
many commenters noted that the Board's proposal for 22x7x365 operations 
would affect both large-value and retail domestic payments. A number of 
commenters that supported the proposal, including large banks and trade 
organizations, indicated that expanded hours for the Fedwire Funds 
Service and NSS would enable more-efficient funding of domestic instant 
payment services and would support other domestic large-value 
transactions, such as large business invoices; settlement transactions 
for merchants participating in card networks; consumer and commercial 
loans; transactions related to mergers, acquisitions and real estate; 
and insurance payouts. Some of these commenters further noted that such 
benefits would help ensure that the evolving needs of commerce are 
supported across both retail and wholesale infrastructures.
    Some commenters noted that expanded hours for NSS would provide 
opportunities for private-sector payment systems to conduct 
multilateral settlement on additional days. Specifically, several 
commenters from payments associations and the U.S. Congress emphasized 
that expanded hours for NSS would enable additional settlement windows 
for ACH, which could support more frequent ACH

[[Page 51359]]

payments for consumers and businesses, including payments related to 
payroll direct deposits and card-based sales. One commenter from a 
trade organization added that expanded hours for NSS alongside the 
Fedwire Funds Service would support safer and more efficient 
transactions across all clearing and settlement systems, such as FMUs 
and retail systems. On the other hand, many commenters from a variety 
of segments, including both small and large banks, expressed 
significant concern that expanding NSS hours could prompt private-
sector ACH and check networks to expand processing days and settlement 
windows, potentially compelling their participants to operate on 
weekends. In addition, a number of commenters, including trade 
organizations for banks, suggested that expanded processing days and 
settlement windows for ACH and check services would be redundant and 
inefficient given the availability of 24x7 instant payment services, 
and might disincentivize further industry investment in instant 
payments. Similarly, a private-sector operator of payment systems 
commented that it would prefer to focus investments in its non-instant 
retail payment services on security, resiliency, and fraud mitigation 
rather than efforts to make those services available around the clock. 
Relatedly, a few commenters suggested that the Federal Reserve and 
other stakeholders should evaluate the costs and benefits of adding new 
ACH settlement windows through a separate public comment process. Most 
commenters, including trade organizations representing banks of various 
sizes, expressed strong views that the Federal Reserve should not take 
actions that could encourage further check usage, noting that check 
fraud has grown significantly.
    A few commenters, including two trade associations for banks, noted 
that private-sector operators could use expanded NSS hours as a 
contingency funding mechanism in the event of a Fedwire Funds Service 
outage, supporting resiliency in the payment system. Finally, certain 
commenters requested that the Federal Reserve clarify its strategy and 
views with respect to the intended uses of different payment systems. 
The Board's responses to these considerations are addressed in section 
III.A.
d. Impact on Liquidity Management, Credit Risk, and Innovation
    Many commenters that supported the proposal noted that new 
settlement opportunities in expanded hours could reduce credit risk and 
support greater efficiency in liquidity management, which could also 
lead to innovation and enhanced services in the payment system, 
financial markets, and the broader economy. Regarding benefits to the 
payment system, many commenters associated with large banks noted that 
expanded hours would improve the efficiency of the private-sector 
retail instant payment service by allowing participants to manage their 
liquidity needs in the service on a just-in-time basis, reducing the 
challenges for participants associated with prefunding their payment 
activity ahead of weekends and holidays. A few commenters added that 
expanded hours for the Fedwire Funds Service could facilitate the 
expansion of the private sector's large-value payment system to 
weekends and holidays, which could increase benefits to the wholesale 
payment system.
    Similarly, several fintech organizations noted that expanded hours 
would provide enhanced settlement opportunities and reduce the amount 
of prefunding that nonbank financial institutions (NBFIs) must hold 
with their commercial banks. Some of these commenters added that the 
safety and efficiency benefits arising from enhanced liquidity 
management would support innovation and growth in NBFI service 
providers, many of which provide 24x7 services and promote the use of 
the U.S. dollar in global payments.
    Regarding benefits to the banking, corporate, and financial market 
sectors, some commenters from large banks noted that expanded 
opportunities for settlement of large-value payments could be a 
catalyst for enhancements in bank and corporate treasury functions, 
enabling such functions to more effectively access, manage, and deploy 
capital to meet day-to-day needs for operations, investments, and risk 
management. In addition, some commenters noted that broader 
opportunities for the settlement of time-critical payments would be an 
important step toward enabling additional days for trade settlement in 
financial markets. Finally, some commenters representing FMUs noted 
that expanded hours could support additional collection periods for 
cash margin and liquidity, which could reduce credit risk and liquidity 
exposures around weekends and holidays and could increase resiliency in 
periods of market stress.
    At the same time, many commenters that did not support the proposal 
and many that did support it noted that expanded hours could bring 
additional staffing costs and other challenges related to liquidity 
management. A few commenters noted that the expansion of the Fedwire 
Funds Service and NSS hours may complicate institutions' liquidity 
management amid uncertainty over potential payment flows and liquidity 
sources. Several commenters suggested that financial institutions may 
increase their liquidity positions heading into the weekend or ahead of 
holidays to ensure they will have sufficient liquidity to meet their 
payments needs. Further, a number of commenters asked the Board to 
address the possibility that 22x7x365 operations could enable large 
deposit outflows during weekends and holidays in a bank run scenario, 
potentially exacerbating liquidity issues at banks in stress. A few 
commenters raised questions about the effect of the proposal on weekend 
bank resolution. Many of these same commenters also expressed support 
for the Federal Reserve to expand discount window operations to support 
liquidity provisions for both business-as-usual and financial stability 
reasons. Section IV addresses these concerns.
e. Demand for Large-Value Payments in Expanded Hours
    Many commenters provided feedback on the expected demand for 
payments over the Fedwire Funds Service and NSS during expanded hours. 
Most large institutions identified several potential sources of demand 
for expanded hours; in contrast, most small institutions did not see 
immediate demand or business cases for participating in expanded hours, 
noting that instant payments are sufficient to meet their customers' 
needs. Other banks stated that potential demand is uncertain and 
suggested further study by the Federal Reserve.
    Some commenters argued that expanding Fedwire Funds Service and NSS 
hours would likely shift existing volume to weekends and holidays 
rather than create demand for new transactions. Small banks suggested 
that this potential shifting dynamic would limit their business case 
for participating in expanded hours, whereas large financial 
institutions, businesses, and fintechs noted that payments tend to 
accumulate around holidays and weekends, so a shift in volume could 
actually help create a more efficient and predictable flow of payments 
over the week. Large financial institutions and commenters in the 
capital markets segment added that such a change in payment flows could 
support more efficient capital and liquidity management, provide 
greater funding flexibility and security for their customers, and spur 
the development of

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markets and innovative services during weekends and holidays.
f. Staffing Costs and Competitive Impact
    Staffing considerations represented the most common challenge noted 
by commenters. Over half of commenters that did not support the 
proposal expressed concern about the burden and cost to staff a range 
of support functions during expanded operating hours. This group of 
commenters, which consisted mostly of small banks, midsize banks, trade 
organizations representing those segments, and individuals, noted that 
small institutions would face a greater staffing burden than large 
institutions, because small institutions often rely heavily on manual 
processes to support wholesale payment operations, while larger 
institutions may have greater resources for automation and flexible 
staffing models. A number of small banks and individuals expressed 
concern that expanded hours would harm the quality of life of employees 
required to work during those hours and that it would be difficult to 
hire qualified staff as a result.
    Many institutions, including those from the small bank and fintech 
segments, commented on the impact expanded hours would have on their 
ability to compete with other institutions. Most small banks thought 
that expanded hours would widen their competitive gap with large banks, 
noting that large banks are better positioned to offer weekend and 
holiday wholesale payment services in a cost-effective manner. A few of 
these commenters indicated that small banks may feel the need to 
participate in expanded operating hours to appear competitive despite 
having neither substantial customer demand nor the financial returns to 
justify participation. On the other hand, some commenters associated 
with large banks and fintech firms noted that expanded hours could 
support competition in the payment system by providing a better 
platform on which both traditional and emerging players can compete in 
the around-the-clock market for payment services.
g. Other Operational Considerations
    Many commenters from various segments noted that, in order to use 
the proposed 22x7x365 operating hours for the Fedwire Funds Service and 
NSS, institutions would need to incur certain incremental costs to 
modify or upgrade systems and operational processes related to a range 
of risk management and business functions, with most small institutions 
noting that such costs would outweigh their potential benefits from the 
proposal.\10\ Other commenters noted that costs could be modest to the 
extent that institutions are able to build on existing infrastructure 
they use to support weekend and holiday operations for other services 
(for example, 24x7x365 instant payments). Some commenters, including 
banks and trade organizations representing a range of bank sizes, 
highlighted the need and challenges of providing adequate fraud and 
cyber risk management measures in a 22x7x365 operating environment, 
given that these risks could be elevated during periods when fewer 
resources may be available to monitor risk controls. The Board's 
responses to commenters' concerns related to fraud and cyber risk are 
discussed in section IV.
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    \10\ Commenters noted that there could be substantial costs to 
extend and modify systems and support functions for managing fraud 
risk, credit risk, cyber risk, compliance, accounting, reporting, 
customer service, and other downstream and upstream operations. A 
number of commenters, particularly from small banks, also cited the 
need for key vendors to be available during expanded hours to 
support bank operations.
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    In addition, many commenters noted that, in order to participate in 
22x7x365 operations for the Fedwire Funds Service and NSS, banks would 
need to adapt systems and processes to operate with limited downtime, 
which could significantly increase costs and operational risks, 
depending on a participant's particular level of readiness and the 
amount of time it has to prepare for expanded hours. Commenters 
explained that existing downtime on weekends provides a key window for 
firms of all sizes to conduct system maintenance, upgrades, and testing 
to support the resilience of firms' technical infrastructure to 
operational and cyber incidents. Some commenters noted that only two 
hours of downtime per day in a 22x7x365 operating schedule would not 
provide sufficient downtime to accommodate system changes and other 
operational activities. Given these considerations, commenters from 
both large and small institutions asked for ample time to prepare for 
expanded hours, with some commenters requesting a phased approach that 
would start by maintaining substantial windows of downtime.
    Many commenters provided feedback on the Board's proposal to extend 
its existing optional participation model for the Fedwire Funds Service 
and NSS to include expanded operating hours. Many commenters from 
various segments supported the Board's proposal to maintain 
optionality, with some noting that the model would help participants 
avoid the costs and risks of participation if such participants do not 
see sufficient benefits. Other commenters raised concerns and 
considerations related to the opt-in model that are addressed in detail 
in section IV.
2. Implementation Considerations
a. Preferences for an Interim Step and Daily Operating Hours
    A small segment of commenters directly addressed the Board's 
question on whether commenters would prefer an interim expansion of 
operating hours before moving to 22x7x365 as proposed. Some commenters, 
primarily representing large banks and fintech firms, did not think the 
Board should pursue an interim expansion short of 22x7x365, because 
that approach could add complexity and cost relative to a single-step 
expansion to 22x7x365. At the same time, many commenters from multiple 
segments emphasized that the Board's final decision on operating hours 
should aim to mitigate risks and impacts to participants, and that 
clarity on the Board's overall path on operating hours would help banks 
reduce the cost of a phased expansion process.
    A significant number of commenters that responded to the Board's 
question preferred a phased approach with an initial expansion short of 
22x7x365. While many commenters representing small institutions were 
not in favor of expanded hours, a number of these commenters suggested 
that, with sufficient time to adapt, a shorter or phased expansion 
approach could be manageable. Commenters suggested various ideas for an 
interim step, with no consensus on a path forward. Suggestions for an 
interim step generally included one or a combination of the following: 
excluding federal holidays, excluding weekends, operating six days per 
week instead of seven, and retaining a specified number of down 
weekends or days per year. Many of these commenters noted that an 
interim step would help participants adapt to new operational needs and 
provide an opportunity to test demand for expanded hours.
    A few commenters indicated preferences for certain changes to the 
daily operating hours of the Fedwire Funds Service and NSS, although 
most commenters did not suggest any changes to the daily operating 
schedule of these services for either current or expanded operating 
days. Specifically, a few commenters representing institutions in 
western U.S. time zones asked for a later daily closing time for the 
Fedwire Funds Service and NSS, noting that this change would better

[[Page 51361]]

align with the business day in those regions. In addition, one of these 
commenters asked for weekend and holiday operating hours to be limited 
to 9:00 a.m. to 5:00 p.m. ET to reduce staffing and system costs for 
participants in expanded hours.
b. Timeline
    About a quarter of commenters addressed the Board's question about 
their preferred timeline for implementing expanded hours. Of this 
group, the majority of commenters, consisting of large banks, FMUs, and 
various trade organizations, were in favor of the Board's proposal to 
implement expanded hours no sooner than two years after the migration 
of the Fedwire Funds Service to the ISO 20022 standard, which occurred 
in July 2025. Some commenters preferred that the implementation of 
expanded hours begin no sooner than two years after the publication of 
the Board's decision on expanded hours. These commenters noted that 
substantial lead time would help the industry adapt staffing, systems, 
and processes to be ready for expanded hours. Some commenters thought 
that the Board should not delay the expansion beyond two years. Other 
commenters indicated that the Board should determine the implementation 
date based on when a critical mass of participants are willing and 
ready to participate in expanded hours.
3. Other Considerations
    The 2024 Notice asked for feedback on other considerations relevant 
to an expansion of operating hours for the Fedwire Funds Service and 
NSS. Commenters asked the Board to consider impacts on money laundering 
and sanctions compliance screening, with some commenters suggesting the 
Reserve Banks should conduct such screening. Several commenters 
suggested that expanded operating hours may require changes to the 
regulatory definitions of ``banking day'' and ``business day.'' 
Commenters also raised topics that were outside the scope of the 
proposal. These comments are addressed in detail in section IV.C.6.
    Commenters also provided feedback on the Board's plan not to expand 
the operating hours of the Fedwire Securities Service at this time, 
which is addressed in section IV.C.5.

II. Planned Action

    After consideration of the comments received regarding the 
benefits, costs, and risks of expanding Fedwire Funds Service and NSS 
operating hours, the Board has decided to expand the operating hours of 
the Fedwire Funds Service to 22 hours per day, 6 days per week, 
operating Sunday through Friday, including weekday holidays (22x6), and 
to expand the operating hours of NSS correspondingly, with NSS closing 
30 minutes earlier than the Fedwire Funds Service. The Board believes 
that expanding operating hours to 22x6 as an interim step, rather than 
straight to 22x7x365 as originally proposed, balances the 
considerations raised by different stakeholders, particularly the 
differing views of large and small institutions, and supports the 
Board's policy objective to foster a safe and efficient U.S. payment 
system for the long term.\11\
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    \11\ As noted elsewhere in the notice, prior to making a 
decision on a further expansion of operating hours, the Board would 
issue a new proposal and request comments in the Federal Register, 
and nothing in this notice is binding upon the Board to take further 
steps.
---------------------------------------------------------------------------

    The Board has further decided that the Fedwire Funds Service and 
NSS will follow the same daily operating hours on Sundays and holidays 
as they do for current business days, with the Fedwire Funds Service 
opening at 9:00 p.m. ET on the calendar day preceding a business day 
and closing at 7:00 p.m. ET on the business day. Based on this 
schedule, the Fedwire Funds Service will retain 26 hours of weekend 
downtime from its 7:00 p.m. ET close on Friday to 9:00 p.m. ET on 
Saturday when it will open for the Sunday business day, providing a 
weekly period for participants and other stakeholders to conduct 
maintenance and testing.\12\ Section IV.A explains why the Board 
determined that 22x6 expanded hours should consist of a Sunday 
operating day and why all operating days, including Sundays and 
holidays, should operate on the same hours.
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    \12\ As discussed elsewhere in this notice, specifically section 
IV, participation in expanded hours is optional, and participants 
are not required by the Federal Reserve to align their business days 
with Fedwire Funds Service business days.
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    After considering public comments on the preferred timeline for 
implementing expanded hours, the Board plans for the Reserve Banks to 
implement the 22x6 expansion in 2028 or 2029. This time frame is 
intended to provide sufficient time for the industry to complete any 
remaining changes related to the migration of the Fedwire Funds Service 
to the ISO 20022 standard, which was completed in July 2025, and to 
make any necessary technical and operational changes to support 
expanded hours. The Reserve Banks will update and narrow their 
implementation time frame for 2028 or 2029 based on industry 
developments and additional outreach to participants, with the goal of 
providing sufficient advance notice to all participants. The final go-
live date will be informed by industry readiness factors, such as 
technical and operational considerations.
    Regarding potential future expansions of operating hours beyond 
22x6, the Board continues to believe and acknowledges comments that 
22x7x365 operations could provide additional benefits to the payment 
system. As a result, the planned expansion to 22x6 will provide the 
foundational capability for the Reserve Banks to expand operating hours 
up to 22x7x365 in the future. The Board will continue to monitor 
industry demand and will stand ready to offer an additional expansion 
up to 22x7x365 operations no sooner than two years after implementing 
22x6 operations. The Board believes that implementing 22x6 will provide 
stakeholders with the opportunity to better understand the demand, 
benefits, costs, risks, and operational tradeoffs related to a 
potential further expansion of operating hours up to 22x7x365. Prior to 
making a decision on a further expansion of operating hours, the Board 
would issue a new proposal and request comments in the Federal 
Register.

III. Assessment of the Planned Action

    In 1984, the Board established criteria for the consideration of 
new or enhanced Federal Reserve payment services in its policy ``The 
Federal Reserve in the Payments System.'' \13\ The policy incorporates 
the cost recovery requirements of the MCA and the MCA's objective of 
achieving an adequate level of service nationwide. In expressing the 
Board's overall expectations for the Federal Reserve's provision of 
payment services, the policy takes into account longstanding public 
policy objectives to promote the safety and efficiency of the payment 
system and to ensure the provision of payment services to banks 
nationwide on an equitable basis, and the importance of achieving these 
objectives in an atmosphere of competitive fairness.
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    \13\ See The Federal Reserve in the Payments System (issued 
1984; revised 1990 and 2001), Federal Reserve Regulatory Service 9-
1558, https://www.federalreserve.gov/paymentsystems/pfs_frpaysys.htm. As stated in the policy, the Board, in its sole 
discretion, determines when the process outlined in the policy is 
applicable and makes all decisions related to the process.
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    Reflecting these expectations, the policy requires all of the 
following criteria to be met for a major service enhancement, such as 
the expansion of the operating hours of the Fedwire Funds Service and 
NSS to 22x6:

[[Page 51362]]

     The Federal Reserve must expect that its providing the 
service will yield a clear public benefit, including, for example, 
promoting the integrity of the payments system, improving the 
effectiveness of financial markets, reducing the risk associated with 
payments and securities-transfer services, or improving the efficiency 
of the payments system. (Public Benefits Criterion)
     The service should be one that other providers alone 
cannot be expected to provide with reasonable effectiveness, scope, and 
equity. (Other Providers Criterion)
     The Federal Reserve must expect to achieve full recovery 
of costs over the long run. (Cost Recovery Criterion)
    The following sections provide the Board's assessment of the 
proposed action under these three criteria.

A. Public Benefit

    The Board's Public Benefits Criterion requires that a major service 
enhancement yield long-term benefits to the public and the economy as a 
whole. Therefore, in determining whether the Federal Reserve should 
expand the operating hours of the Fedwire Funds Service and NSS to 
22x6, the Board has considered the expected public benefits and 
potential offsetting costs of expanded operating hours.
1. Public Comments
    As described above in section I.C, the benefits of expanded hours 
noted in the public comments generally align with the potential 
benefits outlined in the 2024 Notice. In summary, comments in support 
of the Board's proposal highlighted benefits such as enabling certain 
use cases (for example, cross-border U.S. dollar payments, corporate 
invoice payments, commercial loan payments, insurance, and real estate 
payments), supporting enhanced liquidity management for a range of 
participants in the payment system, supporting the role of the U.S. 
dollar as the preferred currency for global settlement, and investing 
in foundational infrastructure to support the future evolution of the 
payments system.
    More specifically related to an expansion of hours for NSS, 
commenters noted that benefits would include the potential for 
additional settlement windows for private-sector arrangements that use 
NSS for final settlement of net payment obligations. Some commenters 
added that NSS also serves as a potential backup funding and settlement 
mechanism for critical arrangements that typically use the Fedwire 
Funds Service. Expanding NSS operating hours in line with Fedwire Funds 
Service hours would preserve the contingency relationship between these 
two services.
    Small institutions raised concerns about the costs and market 
pressures that could arise under the Board's original proposal for 
22x7x365 operations. In particular, small institutions noted that they 
did not see significant customer demand for expanded hours, and that 
participation would bring significant costs and challenges related to 
staffing, operational, and system changes. Further, many small 
institutions expressed concern that participation would not be optional 
in practice due to market factors, even though the Federal Reserve 
itself would not require participation in expanded hours. Specifically, 
these commenters worried that competitive pressure from large banks 
that offer expanded wire services may force small banks to participate 
in expanded hours over time. Contributing to this sentiment, both small 
and large institutions expressed concern that expanded hours for NSS 
could lead to the introduction of new weekend settlement windows for 
ACH and check.
2. Board Analysis
    After considering public comments on the proposal, the Board 
believes that an expansion of operating hours to 22x6 would provide 
clear public benefits. In particular, 22x6 operations will provide 
opportunities for more frequent settlement in central bank money that 
could enhance safety and efficiency in a range of payments, including 
cross-border U.S. dollar payments, large-value corporate payments, and 
funding payments for private-sector payment systems and market 
participants.
    The Board believes that expanding the hours of the Fedwire Funds 
Service would support the role of the U.S. dollar as the preferred 
currency for global settlement by expanding the foundational 
infrastructure on which global U.S. dollar settlement relies. Such an 
investment would support U.S. competitiveness in cross-border payments 
networks, particularly as other countries and global payment systems 
are increasingly providing services for nearly round-the-clock large-
value payments.
    The Board also believes that expanding Fedwire Funds Service and 
NSS operating hours to 22x6 will support enhanced liquidity management 
for participants and private-sector payment systems, and indirectly for 
their customers, by allowing large-value cash obligations and exposures 
to be settled more quickly, reducing the need for market participants 
to prefund transactions ahead of weekends and weekday holidays.
    The Board further believes that the potential safety and efficiency 
benefits of 22x6 operations could enable enhanced and innovative 
services in the private sector over time. For example, private-sector 
payment systems and participants may leverage an enhanced foundation 
for large-value settlement to support expanded trading days or enhanced 
payment services, providing additional benefits to the broader economy.
    The Board understands the concerns raised by small institutions 
regarding the costs and market pressures that could arise in an 
expanded operating hours environment. The Board's action in this notice 
to expand operating hours to 22x6 as an interim step is intended to 
reduce adjustment costs and challenges for participants relative to an 
expansion straight to 22x7x365, while still enabling substantial 
benefits. Further, the Board believes that the ability to opt out of 
expanded hours will reduce costs to participants that do not see a 
business case for participating, notwithstanding certain concerns 
raised by some commenters about optional participation that are 
addressed in more detail below.\14\
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    \14\ Currently, the Reserve Banks do not require participants to 
be open to process transactions through the Fedwire Funds Service or 
NSS during all hours of the business day for the Fedwire Funds 
Service and NSS. As a result, some participants may opt out of 
participating in certain hours of the day (such as during overnight 
hours) by not being open to process transactions during those times. 
As further explained in section IV.C.1, the Reserve Banks will 
retain this optional participation model for expanded hours.
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    Regarding NSS expansion, while the Board agrees with the benefits 
noted by commenters, the Board also acknowledges the challenges raised 
by commenters with respect to NSS expansion enabling the possibility of 
weekend ACH and check settlement. The Board is clarifying that the 
Federal Reserve has no current plans to seek expanded processing hours 
for Federal Reserve ACH and check services. Regarding ACH, changes to 
processing days would be subject to the Nacha rulemaking process.\15\ 
Additionally, the Board would likely need to seek public comment before 
committing to any additional same-day or weekend ACH processing 
windows, which would have a significant longer-run effect on the 
payment system.\16\
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    \15\ Nacha governs the automated clearinghouse network through 
its rules and standards. See About Us [verbar] Nacha--Administrator 
of the ACH Network, https://www.nacha.org/content/about-us.
    \16\ See, e.g., Letter from Matthew Eichner, Dir., Bd. of Gov'rs 
of the Fed. Rsrv. Sys., to Jane Larimer, Pres. and CEO, NACHA--The 
Electronics Payments Association, (Dec. 1, 2024), https://www.federalreserve.gov/paymentsystems/files/board-staff-comment-letter-to-nacha-2024-12-13.pdf. (noting that the Board would likely 
need to seek public comment before adding more same-day ACH 
processing windows).

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[[Page 51363]]

    The Board also acknowledges public comments that expanded Fedwire 
Funds Service operating hours could blur the lines between the usage of 
the Fedwire Funds Service and the Federal Reserve's other RTGS service, 
the FedNow Service, which operates around the clock.\17\ The Board is 
clarifying that the benefits articulated in this notice for expanded 
Fedwire Funds Service hours are specific to the types of payments and 
markets that the Fedwire Funds Service is intended to support. While 
the Fedwire Funds Service and the FedNow Service both settle payments 
in real time, they serve different purposes. Among other things, the 
Fedwire Funds Service plays a critical role in the implementation of 
United States monetary policy, is used for time-critical and large-
value payments in the financial markets, and supports the role of the 
U.S. dollar in global settlement. In contrast, the FedNow Service is 
designed to provide immediate funds availability for lower-value 
consumer and business transactions.\18\ The Board encourages banks to 
use the Fedwire Funds Service and FedNow Service according to the 
payment types and use cases that the services are intended to support.
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    \17\ The FedNow Service is the Federal Reserve's 24x7x365 real-
time gross settlement service that supports instant payments in the 
United States. The service is intended for lower-value payments that 
are generally originated by consumers and businesses. ``FedNow'' is 
a service mark of the Federal Reserve Banks.
    \18\ The FedNow Service has a $1 million limit on the maximum 
transaction value of a payment. Effective November 2025, this 
transaction limit will be increased to $10 million. The FedNow 
Service is designed to support end-to-end instant payments from a 
sender to a receiver by providing immediate funds availability for 
end users, such as consumers and businesses. Over time, it is 
expected that banks will increasingly provide their customers with 
new applications and other digital services for time-critical 
payments such as last-minute bill payments, daily payroll, real 
estate transactions, and emergency insurance payouts.
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B. Other Providers

    Board policy requires that for a major service change, the service 
should be one that other providers alone cannot be expected to provide 
with reasonable effectiveness, scope, and equity. The measures of scope 
and equity reflect the Federal Reserve's objective of ensuring adequate 
provision of payment services nationwide on an equitable basis. The 
effectiveness measure addresses the extent to which other providers 
alone can be expected to advance desirable outcomes in the U.S. payment 
system.
    In considering public comments on the proposal and the Fedwire 
Funds Service's and NSS's roles in the payment system, the Board 
believes that other providers alone could not provide equivalent 
services to expanded hours for the Fedwire Funds Service and NSS as 
described in more detail below.
1. Public Comments
    Many commenters that did not support the proposal, mostly 
consisting of individuals and small institutions, questioned the need 
for expanded hours for the Fedwire Funds Service and NSS when instant 
payment services already support 24x7x365 payments. However, several 
commenters from large institutions note that the Fedwire Funds Service 
and NSS serve certain use cases with respect to wholesale and cross-
border payments that are not served by instant payment or other 
services. The previous section provides further detail on the 
differences between Fedwire Funds Service and instant payment services.
    Many comments also noted that the Fedwire Funds Service and NSS 
serve important roles in providing final settlement in central bank 
money and in supporting the safe and efficient flow of liquidity 
throughout the payment system and broader economy.
    The private-sector operator of large-value and instant payment 
services expressed support for expanding the operating hours of the 
Fedwire Funds Service, noting that the expansion would enable more 
efficient funding of the operator's instant payment service and could 
facilitate a potential future expansion of the operator's large-value 
payment service to weekends and holidays.
2. Board Analysis
    In response to comments that existing instant payment systems 
negate the need for expanding Fedwire Funds Service operating hours in 
particular, the Board notes that the Fedwire Funds Service and NSS 
serve certain use cases with respect to wholesale and cross-border 
payments that are not served by instant payment or other services. 
Section III.A.2 provides further detail on the differences between 
Fedwire Funds Service and instant payment services.
    With respect to effectiveness, as commenters noted, the Federal 
Reserve has a unique and critical role in providing foundational 
services that enable direct settlement of critical payment obligations 
in central bank money. Specifically, institutions of all sizes as well 
as other payment, clearing, and settlement services rely on the Fedwire 
Funds Service as the backbone for final settlement and funding of 
critical payments in risk-free central bank money. Similarly, NSS 
provides a safe and efficient foundation for payment, clearing, and 
settlement arrangements to conduct multilateral settlement of critical 
large-value payments in central bank money. Financial markets build on 
the Fedwire Funds Service and NSS to provide safer, more efficient, 
innovative, and expanded services to end users throughout the economy.
    Given these considerations, enhancements to the Fedwire Funds 
Service and NSS, such as expanded operating hours, support broader 
enhancements to safety, efficiency, and innovation in the payment 
system that other providers could not be expected to provide alone. For 
example, the Board notes that the private-sector large-value payment 
service relies on the Fedwire Funds Service for funding payments in 
central bank money to support its settlement process. For this reason 
and as noted in the private-sector operator's comment letter, the 
Board's proposal could facilitate a similar expansion in the operating 
hours of the private-sector large-value payment service. Ultimately, 
the Board believes there are no exact substitutes for Fedwire Fund 
Service's and NSS's roles in providing foundational infrastructure for 
the payment system and the economy.
    In terms of scope and equity, today the Fedwire Funds Service and 
NSS are broadly accessible to eligible institutions across the country 
on equal terms, and the Federal Reserve would continue to offer 
participants broad access to the Fedwire Funds Service and NSS during 
expanded operating hours. Thus, the Federal Reserve could offer 
institutions similarly broad access to expanded operating hours.

C. Cost Recovery

    Section 11A of the Federal Reserve Act, as added by the MCA, 
requires that fees for Federal Reserve Bank payment services be set in 
accordance with the principle that, over the long run, those fees 
recover the costs of providing the services.\19\ In addition, Board 
policy

[[Page 51364]]

specifies that each major service category offered by the Federal 
Reserve must separately satisfy the cost recovery objective of the MCA: 
in the long run, aggregate revenues should match costs.\20\ This 
section provides the Board's assessment of the proposal against these 
requirements, taking into account relevant public feedback on the 
proposal.
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    \19\ In particular, section 11A provides that, ``[o]ver the long 
run, fees shall be established on the basis of all direct and 
indirect costs actually incurred in providing the Federal Reserve 
services priced, including interest on items credited prior to 
actual collection, overhead, and an allocation of imputed costs 
which takes into account the taxes that would have been paid and the 
return on capital that would have been provided had the services 
been furnished by a private business firm, except that the pricing 
principles shall give due regard to competitive factors and the 
provision of an adequate level of such services nationwide.'' 12 
U.S.C. 248a.
    \20\ The Federal Reserve in the Payments System, supra note 13.
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1. Public Comments
    The Board notes that commenters did not provide specific views on 
cost recovery in response to the 2024 Notice. Instead, commenters' 
feedback was generally focused on their own expected costs, use cases, 
and demand for expanded hours as discussed in the summary of comments 
above. The Board has considered commenter feedback on expected demand 
and taken a conservative view of how expanded hours might affect the 
overall growth in Fedwire Funds Service and NSS payment volumes, which 
in turn affects how the Board anticipates the service will recover 
costs in the long run.
2. Board Analysis
    The Board believes that the Reserve Banks would be able to achieve 
full recovery of costs over the long run associated with the proposed 
22x6 expanded operating hours. The MCA does not specify the ``long-
run'' period over which the Federal Reserve must recover service costs, 
nor does the legislative history indicate that Congress intended it to 
be a specific period. The Board has typically used a rolling ten-year 
period when assessing long-run recovery of existing services. Because 
the Fedwire Funds Service and NSS are mature services, the Board 
believes it is appropriate to evaluate cost recovery for expanding 
Fedwire Funds Service and NSS to 22x6 operating hours over a ten-year 
period.
    Public comments that discussed the need for expanded hours to 
support cross-border activity, innovative use cases, and additional 
settlement opportunities for systemically important and large-value 
transactions support the Board's own assessment that, over time, 
expanding Fedwire Funds Service and NSS hours would generate increases 
in volume and revenue. The Board's cost recovery analysis also factors 
in the views of some commenters that expanded hours would likely shift 
existing volume to weekends and holidays rather than create demand for 
new transactions. In addition, the Reserve Banks' cost recovery 
analysis factored in expected costs for system changes and additional 
staffing during the weekends. The Board continues to expect that these 
costs would be offset by increased Reserve Bank revenue, subject to 
various factors such as the competitive and/or economic environment in 
future years, new product enhancement opportunities, and potential 
Fedwire Funds Service and NSS pricing changes. In addition, Reserve 
Bank operational costs may be lower for expanded hours due to 
efficiency gains that could arise from leveraging operations and 
customer support staff that are already in place for the FedNow 
Service.

IV. Implementation Details and Considerations

    The following section provides a general description of key 
implementation details and considerations related to the Board's 
announcement in this notice, including a general explanation of the 
Board's decision to implement 22x6 operating hours for the Fedwire 
Funds Service and NSS, details on the implementation timeline, the 
Board's views on potential future expansions beyond 22x6, plans for 
providing a participant directory to support 22x6 operations, fraud 
risk considerations, liquidity and credit risk considerations, and 
other factors related to implementation raised in the public comments.

A. Implementation of 22x6 operating hours in 2028-2029

    After considering public comments on the proposal, the Board 
believes that 22x6 operating hours that include Sundays and weekday 
holidays will achieve a substantial amount of the benefits of 22x7x365 
operating hours, while balancing the requests of many commenters for a 
phased or shorter expansion that maintains significant periods of 
downtime. The Board notes that initial demand for expanded operating 
hours for the Fedwire Funds Service, particularly with respect to 
cross-border payments, is most evident on Sundays and weekday holidays 
when international markets and other jurisdictions' large-value RTGS 
systems are operating. In addition, an expansion to Sundays and 
holidays could support more timely settlement of payments that 
currently accumulate around those down periods.
    Currently, the Fedwire Funds Service is open from 9:00 p.m. ET of 
the preceding calendar day to 7:00 p.m. ET, five days per week, Monday 
through Friday excluding holidays observed by the Reserve Banks, and 
NSS is open from 9:00 p.m. to 6:30 p.m. ET, five days per week, Monday 
through Friday excluding holidays observed by the Reserve Banks. The 
Board has decided to use the existing daily operating schedule for the 
Fedwire Funds Service and NSS in expanded hours. With respect to the 
Fedwire Funds Service, the Board believes that maintaining a 9:00 p.m. 
ET open on the preceding calendar day for Sundays and holidays would 
support potential demand for overnight cross-border and foreign 
exchange transactions just as the 9:00 p.m. ET open supports such 
transactions during current business days. The Board understands the 
requests of a few commenters for a later closing time to better 
accommodate the business day in western U.S. time zones. However, the 
Board believes that changing the closing at this time would be 
disruptive to end-of-day processes and other business conventions at 
participants and the Federal Reserve. Further, extending the closing 
time would require delaying the opening time, which could impede the 
international use cases of the Fedwire Funds Service. The Board notes 
that commenters that supported the proposal generally did not suggest 
changing the opening and closing times for the services.
    The Board has decided not to expand hours to Saturdays at this time 
because of the heightened challenges of Saturday operations relative to 
the potential benefits. In particular, the Board understands that many 
participants and the Reserve Banks currently use Saturday for 
conducting system maintenance, testing, and upgrades, so maintaining 
downtime on Saturdays could help participants reduce operational and 
cyber risk as the market adapts to additional Fedwire Funds Service and 
NSS operating days.\21\ Further, some commenters noted--and the Board 
recognizes--that weekend downtime provides a helpful pause for 
financial market stakeholders during periods of market stress. The 
Board believes that maintaining downtime on Saturday would support 
stakeholders that have historically used this time to manage market 
stress events. This downtime may be beneficial for financial stability 
as stakeholders adapt

[[Page 51365]]

to financial activity increasingly occurring over more days.
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    \21\ The Board notes that, from time to time, Federal Reserve 
Financial Services (FRFS) announces extended weekend maintenance 
windows in advance. In 22x6 operations, FRFS will retain the ability 
to announce extended maintenance windows, which could extend beyond 
the 26 hours of regular downtime between Friday and Sunday operating 
days.
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    As noted above, the Board plans to correspondingly expand the 
operating hours of NSS, with NSS closing 30 minutes earlier than the 
Fedwire Funds Service. The Board believes that expanded hours for NSS 
would complement expanded hours for the Fedwire Funds Service, 
providing eligible institutions and private-sector payment, clearing, 
and settlement services with wider opportunities for real-time gross 
and multilateral net settlement of large-value payments in central bank 
money, which would support greater safety, efficiency, and innovation 
in the payment system.\22\ Further, the Board agrees with commenters 
that expanded hours for NSS would support resiliency in the payment 
system because private-sector services are able to use NSS as a backup 
to the Fedwire Funds Service in contingency scenarios.
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    \22\ Expanding the operating hours of NSS is consistent with a 
goal of the Federal Reserve's 2015 paper ``Strategies for Improving 
the U.S. Payment System,'' which noted that expanded hours for NSS 
could improve the settlement speed of and support innovation in 
private-sector arrangements.
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    The Board recognizes that some commenters asked for NSS operating 
hours to not be expanded at this time primarily because of concerns 
about NSS enabling the possibility of new ACH and check settlement 
windows on weekends, which could bring significant challenges for some 
institutions. As discussed in detail in sections III.A.2 and IV.C.1, 
the Federal Reserve has no current plans to seek expanded processing 
hours for Federal Reserve ACH and check services. Further, the Board 
believes that these challenges raised by commenters warrant careful 
consideration through public consultation processes before any 
expansion of ACH or check settlement into the weekend or holidays.
    As discussed above, the Federal Reserve intends to implement 22x6 
operating hours for the Fedwire Funds Service and NSS between 2028 and 
2029, with a specific time frame for launch to be determined based on 
participant readiness and outreach through established Reserve Bank 
communication channels, such as FRBservices.org. The Board believes 
that this time frame is consistent with requests from most commenters 
for a minimum two-year period to prepare for expanded hours following 
publication of this notice.

B. Potential Future Expansions Beyond 22x6

    Commenters that supported the proposal generally thought that the 
Board should expand operating hours to 22x7x365. The Board believes 
that an expansion first to 22x6 as an interim step would help the 
industry adjust to expanded operating days in the near term. At the 
same time, the Board agrees that expanding to 22x7x365 operations in 
the future could increase the benefits discussed in this notice. The 
Board will continue to monitor industry demand and will stand ready to 
offer an additional expansion up to 22x7x365 operations no sooner than 
two years after implementing 22x6 operations. Further, the Reserve 
Banks will continue to collect feedback from participants on their 
service needs through the Reserve Banks' regular participant engagement 
channels. The Board believes that the process of implementing 22x6 will 
provide stakeholders with the opportunity to develop a better 
understanding of the demand, benefits, costs, risks, and operational 
tradeoffs to further expansion of operating hours to 22x7x365. Given 
that these considerations related to 22x7x365 operations are likely to 
evolve as the industry prepares for or adapts to 22x6 operations, the 
Board would solicit comments through a Federal Register notice prior to 
further expansion of operating hours.

C. Other Operational Considerations for 22x6 Operations

1. Opt-In Model for the Fedwire Funds Service and NSS
    A number of commenters provided feedback on the Board's proposal to 
maintain optional participation in the Fedwire Funds Service and NSS 
during expanded hours. While many commenters acknowledged that the 
Federal Reserve itself will not require banks to participate in 
expanded hours, many small bank commenters and related trade 
organizations expressed concern that small institutions may feel 
competitive pressure to participate if large institutions choose to 
offer payment services that leverage the Fedwire Funds Service during 
expanded hours. In addition, many commenters from a range of market 
segments expressed concern that private-sector arrangements that use 
NSS could expand processing days and settlement windows to the weekend 
and require their participants to participate under the terms of the 
arrangements. Finally, a few commenters noted that maintaining an opt-
in model could, over time, hinder sufficient adoption in expanded hours 
and the ability to achieve the benefits stated in the Board's proposal.
    The Federal Reserve is committed to offering flexible, reliable, 
and secure payment processing and settlement, and the opt-in 
availability to participants remains a key component of the Fedwire 
Funds Service and NSS. As noted in the Board's 2024 Notice and in some 
public comments, the opt-in model would help participants avoid costs 
and challenges related to expanded hours if they do not see a 
sufficient benefit in using such hours--flexibility that participants 
use today if they do not see a need to participate in overnight 
operating hours.\23\
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    \23\ Even if a participant chooses not to operate during some or 
all of the Fedwire Funds Service or NSS hours, the Reserve Banks 
would continue to deliver Fedwire Funds Service payment orders or 
NSS transactions sent to the participant during those times and 
settle those transactions by crediting the participant's Reserve 
Bank settlement account, as they do today. For the Fedwire Funds 
Service, if a Sunday or holiday is not a funds-transfer business day 
for a participant, or the participant establishes cutoff times for 
the receipt of payment orders on those days, the participant would 
not be required to act on payment orders received on those days or 
after those cutoff times, respectively, until its next funds-
transfer business day. For NSS, if a participant does not settle NSS 
transactions during part or all of a Sunday or holiday, it may be 
unable to send or receive transactions through the private-sector 
clearing arrangement during those times depending on the rules of 
the clearing arrangement. The Reserve Banks will retain this 
optional participation model for expanded hours. The 2024 Notice 
describes in greater detail the optional participation model and 
implications for participants. 89 FR 39613, 39618-19.
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    Regarding NSS expansion, the availability of NSS on weekends and 
holidays could, in theory, enable private-sector ACH and check 
arrangements to add new settlement windows during these expanded hours, 
and potentially require their participants to participate. However, as 
stated above, the Board does not anticipate expanding check processing 
days and believes that expansion of the Federal Reserve's ACH 
processing windows would likely require public comment, through which 
the Board would consider the benefits and costs to institutions from 
expansion of such services.
2. Other Enhancements to the Fedwire Funds Service and NSS
    About a fifth of commenters addressed the Board's question about 
whether other service enhancements would be beneficial in the context 
of expanded hours. Among these commenters, the most requested 
enhancement was for a participant directory that would identify which

[[Page 51366]]

Fedwire Funds Service participants are active during expanded hours. 
These commenters noted that such a directory could support more 
efficient payment flows and help prevent trapped liquidity in the 
network of Fedwire Funds Service and NSS participants.
    Given that a broad theme from public comments was that the Federal 
Reserve should take steps to support liquidity management in expanded 
hours, the Federal Reserve intends to consider developing a participant 
directory. The Reserve Banks will engage with participants to solicit 
feedback on whether and how to implement any directory.
3. Fraud Risk
    Comments received in response to the 2024 Notice emphasized the 
heightened risk of fraud during expanded hours and noted the importance 
of fraud-monitoring staff and tools to aid in mitigating fraud risk. 
Some commenters noted that in the current operating environment, fraud 
risk is often greater during weekends and holidays, and that 
institutional risk controls will need to adjust to anticipate automated 
and staffing solutions during extended hours. The Board agrees that 
strong mechanisms are necessary to support the overall safety and 
efficiency of the nation's payment system. The Board is exploring ways 
the Federal Reserve could mitigate payments fraud within its specific 
authorities. The Board, the Federal Deposit Insurance Corporation, and 
the Office of the Comptroller of the Currency published a Request for 
Information seeking input and engagement from a variety of stakeholders 
to identify and evaluate the range of potential actions they could 
consider, including in the Federal Reserve's role as a payments system 
operator.\24\ The agencies are assessing comments in response to that 
Request for Information.
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    \24\ 90 FR 26293 (June 20, 2025).
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4. Liquidity and Credit
    Comments in response to the 2024 Notice indicated concerns about 
adequate liquidity being available to support expanded operating hours 
on weekends and holidays. To support their current payment services, 
the Reserve Banks provide liquidity in the form of intraday credit, 
also known as daylight overdrafts, to eligible banks and subject to the 
Federal Reserve's Policy on Payment System Risk (PSR Policy).\25\ 
Intraday credit supports the smooth functioning of the payment system 
by supplying temporary liquidity to cover shortages that can result 
when the timing of payment inflows and outflows are not balanced.
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    \25\ Intraday credit is generally available to banks that are 
financially healthy and have regular access to the discount window 
(the Federal Reserve's program for overnight lending to banks). See 
Board of Governors of the Federal Reserve System, ``The Federal 
Reserve Policy on Payment System Risk,'' Part II, https://www.federalreserve.gov/paymentsystems/psr_about.htm.
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    The Federal Reserve intends to provide intraday credit for Fedwire 
Funds Service and NSS transactions during expanded hours under the same 
terms and conditions that the services receive during their current 
operating hours. As is the case today, participating banks would be 
expected to manage their master accounts in compliance with Federal 
Reserve policies, including avoiding overnight overdrafts.\26\ These 
expectations would apply over weekends and holidays, given that the 
Fedwire Funds Service and NSS would operate 22x6.
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    \26\ To minimize Reserve Bank exposure to overnight overdrafts, 
policy established by the Board discourages institutions from 
incurring overnight overdrafts by charging a penalty fee. See id., 
Part III.
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    Account balance management may become more complex in a 22x6 
environment and require attention on Sundays and weekday holidays. 
Participating banks may need to adjust internal account monitoring 
practices to manage intraday liquidity. Liquidity management would be 
particularly important to avoid a negative balance at the close of the 
Fedwire Funds Service operating day. Specifically, banks would need to 
carefully monitor transactions in real time or ensure that sufficient 
funding is available in their master accounts to cover payments that 
may arise shortly before the service's closing.\27\ A few commenters 
suggested that the Board treat all extensions of credit from Reserve 
Banks as intraday credit on weekends and holidays until the next 
weekday business day. A few commenters suggested that, because market 
funding sources may be limited during the proposed expanded hours, 
institutions should not be required to fund daylight overdrafts at 
close of business to prevent overnight overdrafts during expanded hours 
but rather they should be able to fund them on the next weekday 
business day. One commenter suggested a reduction in overnight 
overdraft penalties during expanded hours if the discount window is not 
available.
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    \27\ The Reserve Bank's Account Management Information (AMI) 
service provides a near-real time view of account balances. 
Institutions could use AMI or other internal systems for monitoring 
account balances.
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    The 2024 Notice sought comment on the need for discount window 
operations to support expanded hours for the Fedwire Funds Service and 
NSS.\28\ Commenters that directly addressed this question, including 
commenters from large banks, trade associations representing a range of 
bank sizes and capital markets participants, financial market 
utilities, and private-sector operators, recommended that the Federal 
Reserve extend discount window operations to include weekends and 
holidays. Several of these comments further indicated that the discount 
window's operating hours should be fully aligned with the Fedwire Funds 
Service and NSS hours to support liquidity management (that is, it 
should operate for 22 hours each day). Many commenters pointed to 
uncertainty over payments activity on weekend and holidays as likely to 
complicate firms' end-of-day liquidity management, and more than 10 
comments reported that banks were likely to increase their liquidity 
positions heading into weekends and holidays to ensure sufficient 
liquidity to meet uncertain payment needs. A few commenters noted that 
expanded operating hours for the Fedwire Funds Service and NSS would 
raise the prospect of a bank experiencing potentially rapid deposit 
outflows on weekends or holidays. In this scenario, the discount window 
may mitigate risk of contagion to other institutions. Finally, some 
commenters that did not support the proposal, including some small 
institutions and trade organizations representing small institutions, 
nevertheless indicated that if the Board does decide to pursue expanded 
operating hours for the Fedwire Funds Service and NSS, then discount 
window operating hours should be expanded as well. Most commenters that 
did not support the proposal did not address the Board's question on 
the discount window.
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    \28\ The discount window is a Federal Reserve lending facility 
that helps to relieve liquidity strains for individual banks and for 
the banking system as a whole by providing a reliable backup source 
of funding. Additional information on the discount window is 
available at https://www.federalreserve.gov/regreform/discount-window.htm.
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    About half of the comments that supported expanding discount window 
operations emphasized that private sources of overnight funding for 
banks were likely to be scarce or completely unavailable on weekends or 
holidays. Several noted that existing wholesale funding markets do not 
operate on weekends and holidays and are not likely to emerge, 
particularly with the

[[Page 51367]]

Federal Reserve not considering the expansion of the Fedwire Securities 
Service at this time.\29\ Several of these commenters suggested that 
the Federal Reserve consider additional options to support banks' 
liquidity management on weekends and holidays, for example by operating 
the standing repurchase (repo) facility, or by opening both the Fedwire 
Securities Service and the Reserve Banks' collateral management system 
to allow banks to transfer securities collateral to the discount 
window.\30\
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    \29\ As explained in the 2024 Notice, the Board is not 
considering expanding Fedwire Securities Service operating hours at 
this time. 89 FR 39613, 39620 (May 9, 2024). The Board addresses 
public comments on this topic in Section IV.C.5 below.
    \30\ A few commenters expressed a desire for Federal Home Loan 
Banks (FHLBs) to operate on weekends and holidays to provide an 
alternative source of liquidity. FHLB operations are outside the 
scope of the 2024 Notice.
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    The Board recognizes that depository institutions will need ready 
access to a range of robust liquidity sources as (i) the FedNow Service 
continues to mature and (ii) the operating days of the Fedwire Funds 
Service and NSS expand to include weekends and holidays. The Fedwire 
Funds Service and NSS have transaction limits of up to one penny less 
than $10 billion per payment order and one penny less than $10 trillion 
per settlement file, respectively. Given the potentially large size of 
these transactions, it is particularly important that adequate 
liquidity sources are available on days that the Fedwire Funds Service 
is operational. As a result and recognizing the comments received on 
this topic, the Federal Reserve is exploring expanding discount window 
operating days in connection with the expansion of the Fedwire Funds 
Service. As part of this exploration, the Federal Reserve plans to 
conduct additional outreach to stakeholders to ensure it fully 
understands the benefits and costs of expanded discount window 
operations for institutions of various sizes.
    Regarding Federal Reserve credit, the Board notes that the Federal 
Reserve is not adjusting fees or the framework for the treatment of 
daylight and overnight overdrafts occurring on weekends and holidays. 
As a result, all daylight and overnight overdrafts will be treated 
consistently regardless of when these overdrafts occur.
5. Fedwire Securities Service
    A small number of comments on the 2024 Notice asked for the 
operating hours of the Fedwire Securities Service to be extended 
alongside the hours of the Fedwire Funds Service and NSS, while other 
commenters agreed with the Board's reasons for excluding the Fedwire 
Securities Service from its proposal. Commenters that requested Fedwire 
Securities Service operating hours be expanded cited several needs for 
the Fedwire Securities Service during weekends and holidays, including 
needs related to market liquidity, secured financing and repo markets, 
collateralization with respect to market exposures, and Federal Reserve 
credit and liquidity facilities. Some commenters that did not support 
expanded hours for the Fedwire Securities Service at this time thought 
it would be helpful for the Federal Reserve to conduct a feasibility 
study with the industry on the costs and benefits of a potential future 
expansion.
    The Board is not considering expanding the operating hours for the 
Fedwire Securities Service at this time.\31\ The Board continues to 
believe that the expansion of Fedwire Funds Service and NSS operating 
hours will not create significant changes in secured lending, 
derivatives markets, or other market activity that would necessitate 
expanded operating hours for the Fedwire Securities Service in the near 
term. After considering public comments on the proposal, the Board also 
continues to believe that the aggregate value of transfers during 
current off-hours for the large-value payment services will likely be 
relatively low at the outset and thus unlikely to result in increased 
demand for securities transfers during those hours. The Board agrees 
with some commenters that, in the longer term, expanded hours for the 
Fedwire Funds Service and NSS could influence markets, which could in 
turn increase demand for the Fedwire Securities Service during current 
off-hours. The Board also acknowledges that, under the Board's current 
approach, participants will need to anticipate needs for and pledge 
securities in the Fedwire Securities Service in advance of weekends and 
weekday holidays. The Board will continue to monitor potential demand 
and seek feedback from institutions to determine whether to pursue a 
future expansion of Fedwire Securities Service operating hours.
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    \31\ The Fedwire Securities Service is currently open for 
transfers between participants from 8:30 a.m. ET until 3:30 p.m. ET 
Monday through Friday, excluding holidays observed by the Reserve 
Banks. In addition, Fedwire Securities Service participants may 
reposition securities between their own securities accounts from 
8:30 a.m. ET until 7:00 p.m. ET on those same weekdays.
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6. Other Considerations
    Commenters raised a number of considerations related to the 
implementation of expanded hours that were not discussed in detail in 
the 2024 Notice. This section provides the Board's response to these 
additional topics.
    At least one commenter suggested that the Federal Reserve implement 
and perform centralized screening to ensure compliance with Office of 
Foreign Asset Control (OFAC) requirements for Fedwire Funds Service 
customers to ease the burden on those that participate in expanded 
hours. While the Board understands that such a change would have 
certain benefits to participants, the Board does not believe it 
appropriate for Reserve Banks to conduct screening on behalf of 
financial institutions and notes such screening would not replace a 
financial institution's obligation to comply with OFAC requirements.
    Several commenters asked whether the Board would amend the 
definitions of ``banking day'' and ``business day'' in Regulation CC if 
the Fedwire Funds Service expanded into the weekend and holidays. Some 
commenters also raised this as a consideration if ACH and check 
activities are expanded into the weekend or holidays. The Board notes 
that no amendments to Regulation CC are needed to facilitate the 
expanded hours because in-scope depository institutions are (i) deemed 
not to receive funds from wire transfers on weekends or holidays for 
Regulation CC purposes and (ii) not required to make funds from wire 
transfers available for withdrawal on weekends or holidays.\32\ Banks 
are similarly deemed not to receive ACH and check funds on the weekend 
or legal holidays under Regulation CC and not required to make funds 
available on those days.\33\ Relatedly, a commenter also noted that 
private parties often rely on the Fedwire Funds Service operating day 
for contractual definitions,

[[Page 51368]]

including for defining the term business day. The Board believes that 
these parties will be able to adapt their contracts after the Fedwire 
Funds Service and NSS operating hours are expanded.
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    \32\ Regulation CC implements the Expedited Funds Availability 
Act (EFFA) (12 U.S.C. 4001 et seq.) and the Check Clearing for the 
21st Century Act (Check 21 Act) (12 U.S.C. 5001 et seq.). 12 CFR 
229.1(a). Among other things, EFAA requires in-scope depository 
institutions to make funds from wire transfers available for 
withdrawal not later than the business day after the business day on 
which such funds are received for deposit. ``Business day'' in EFAA 
is defined not to include Saturdays, Sundays, or legal holidays. Any 
funds deposited with an institution on those days are deemed not to 
be deposited for EFAA purposes until the next business day, and 
banks are not required to make funds available on those days. 
Regulation CC aligns with EFAA, except that the time for making 
funds from wire transfers available under Regulation CC starts only 
on a ``banking day'' for the institution. ``Banking day'' is defined 
in Regulation CC as the part of any business day (defined as any 
weekday excluding specified holidays) on which an office of a bank 
is open to the public. Funds received on a day that is not a banking 
day for the depository institution are considered deposited on the 
next banking day. Id., Sec. Sec.  229.2(f), 229.10(b) & 
229.19(a)(5).
    \33\ Id., Sec.  229.10(b) & (c).
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    Several commenters asked about the potential regulatory impact of 
expanded hours, particularly with respect to liquidity regulations such 
as Regulation WW and Regulation YY.\34\ The Board notes that its 
decision on expanded hours does not change the legal standards for 
liquidity risk management. Institutions remain responsible for ensuring 
that their liquidity risk management reflects their operational reality 
if they opt in to expanded hours. The Board's timeline for expanding 
operating hours is intended to provide institutions with time to 
evaluate and, if needed, adapt their organization to account for this 
and other considerations discussed in this notice.\35\
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    \34\ A few commenters also raised questions about the impact of 
expanded hours on rules applicable to futures and securities, 
including the Board's Regulation T and the Security and Exchange 
Commission's Rule 15c3-3. Changes to rules applicable to futures and 
securities are outside the scope of this Federal Register notice. 
Nevertheless, the Board has not identified a reason that expanding 
the hours of the Fedwire Funds Service and NSS into the weekend 
would affect these rules.
    \35\ For example, institutions may need to factor expanded hours 
into their internal models for Regulation YY internal liquidity 
stress testing.
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    Some commenters suggested that the Federal Reserve impose 
regulatory or contractual requirements on Fedwire Funds Service 
participants to report, share, investigate, and mitigate fraud. Others 
asked about potential changes to Fedwire Funds Service and National 
Settlement Service operational practices (for example, planned outages, 
cutoff times, or the closing time for the service's business day). As 
noted in section IV, the Board is assessing public comments following 
publication of a separate Request for Information related to fraud 
considerations. In addition, the Reserve Banks will continue to collect 
input and consider enhancements to address the needs of Fedwire Funds 
Service and NSS participants through the Reserve Banks' regular 
engagement with its participants.

V. Competitive Impact Analysis

    Board policy requires that the Board conduct a competitive impact 
analysis when considering changes to a service. The policy requires the 
Board to first determine whether there will be a direct and material 
adverse effect on the ability of other service providers to compete 
effectively with the Federal Reserve in providing similar services and 
then, if such an adverse effect is identified, to determine if that 
effect is due to differing legal powers or the Federal Reserve's 
dominant market position deriving from such legal differences. Next, if 
such legal differences exist, the proposed change would be further 
evaluated to assess its benefits and determine if the proposal could be 
modified.\36\
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    \36\ See The Federal Reserve in the Payments System, supra note 
13. The policy states, ``The Board will also conduct a competitive 
impact analysis when considering an operational or legal change, 
such as a change to a price or service, or a change to Regulation J, 
if that change would have a direct and material adverse effect on 
the ability of other service providers to compete effectively with 
the Federal Reserve in providing similar services due to differing 
legal powers or constraints or due to a dominant market position of 
the Federal Reserve deriving from such legal differences. All 
operational or legal changes having a substantial effect on 
payments-system participants will be subject to a competitive-impact 
analysis, even if competitive effects are not apparent on the face 
of the proposal. In conducting the competitive-impact analysis, the 
Board would first determine whether the proposal has a direct and 
material adverse effect on the ability of other service providers to 
compete effectively with the Federal Reserve in providing similar 
services. Second, if such an adverse effect on the ability to 
compete is identified, the Board would then ascertain whether the 
adverse effect was due to legal differences or due to a dominant 
market position deriving from such legal differences. Third, if it 
is determined that legal differences or a dominant market position 
deriving from such legal differences exist, then the proposed change 
would be further evaluated to assess its benefits, such as 
contributing to payments-system efficiency or integrity or other 
Board objectives, and to determine whether the proposal's objectives 
could be reasonably achieved with a lesser or no adverse competitive 
impact. Fourth, the Board would then either modify the proposal to 
lessen or eliminate the adverse impact on competitors' ability to 
compete or determine that the payments-system objectives may not be 
reasonably achieved if the proposal were modified. If reasonable 
modifications would not mitigate the adverse effect, the Board would 
then determine whether the anticipated benefits were significant 
enough to proceed with the change even though it may adversely 
affect the ability of other service providers to compete with the 
Federal Reserve in that service.''
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    The Board continues to believe that an expansion of Fedwire Funds 
Service and NSS operating hours would not have a direct and material 
adverse effect on the ability of other service providers to compete 
effectively with the Federal Reserve. In particular, the Federal 
Reserve provides the only large-value payment services in the United 
States that allow settlement in central bank money.
    While some commenters questioned the need for expanding Fedwire 
Funds Service and NSS operating hours given the availability of instant 
payment system (see section III.B), none of the commenters raised 
concerns about the effect expanding Fedwire Funds Service and NSS 
operating hours would have on other service providers' ability to 
compete effectively with the Federal Reserve. Where commenters raised 
competitive considerations, they were supportive of expanding the 
Fedwire Funds Service operating hours. The main private-sector provider 
of large-value payment services and the large majority of commenters 
from large banks, financial market utilities, and fintech companies 
offered comments on the 2024 Notice explaining that they would benefit 
from an expansion of Fedwire Funds Service operating hours. In 
particular, these organizations indicated that an expansion of Fedwire 
Funds Service operating hours would improve efficiency and reduce risk 
in conducting U.S. dollar payments and settlements and would support 
private-sector payments efforts in the United States. For instance, 
expanding Fedwire Funds Service operating hours could improve liquidity 
risk management for payment systems that rely on the Fedwire Funds 
Service for prefunding (for example, a private-sector instant payment 
service, a large-value payment service, and a foreign exchange 
settlement system). Accordingly, an expansion of Fedwire Funds Service 
and NSS operating hours is not expected to adversely impact any other 
service provider that competes with Federal Reserve payment services 
and could instead support their efficiency and resilience.

    By order of the Board of Governors of the Federal Reserve 
System.
Benjamin W. McDonough,
Deputy Secretary of the Board.
[FR Doc. 2025-19942 Filed 11-14-25; 8:45 am]
BILLING CODE 6210-01-P