Work
FRS Financial Services
Payments Risk Committee submits Comment Letter on Federal Reserve Board Proposal to Adopt ISO 20022 Message Format for Fedwire Funds Service
Payments Risk Committee requests Comments on Recent Fedwire Expanded Hours White Paper
The Expanded Hours Working Group (Expanded Hours WG) of the Payments Risk Committee (PRC) recently published a whitepaper outlining eight policy considerations for the Federal Reserve System, regarding the extension of operating hours for Federal Reserve Financial Services (FedNow and Fedwire Funds) up to 24x7x365. These include discussions around Reserve Bank intraday credit provisions; "business day" and "value date" conventions; optional or phased adoption approaches; participant directory information requirements; staffing models; technology support; liquidity risk management; and FMI innovation. The policy considerations are accompanied by a set of questions for industry participants, including Fedwire participants, which could also be useful during the rulemaking process.
All stakeholders are welcome to submit comments by May 17, 2021; comments can be submitted directly to the Payments Risk Committee at (paymentsrisk.committee@ny.frb.org).
Best Practices Report
Report on Best Practices for Payments, Clearing and Settlement Activities: Direct and Indirect Participation in Payment Systems
The Direct and Indirect Participation chapter offers governance, liquidity, legal, and operational considerations and best practice recommendations for managing direct access to a payment system via the operator or indirect access via a relationship with a correspondent bank.
Report on Best Practices for Payments, Clearing and Settlement Activities: Payment Lifecycle Chapter
The Payment Lifecycle chapter focuses on reducing systemic risk by promoting practices related to operations, risk management and liquidity management that enhance the payment lifecycle.
Payments System Liquidity
Payments Risk Committee submits Comment Letter on Potential Federal Reserve Actions to Support Interbank Settlement of Faster Payments
Payments Risk Committee final Intraday Liquidity Flows report
The Intraday Liquidity Flows report provides a view of the infrastructure that enables more than $14 trillion of USD denominated payments and the associated $7 trillion of cash needed to settle those payments to move through the financial system. The study describes the dependencies and interconnections across payments, clearing, and settlement systems and highlights the importance of the underlying infrastructures and the value of continuous review of and improvements to liquidity management.
Report of the Joint Task Force on the PSR Policy Consultation Paper
In formulating these remarks the Payments Risk Committee (PRC) has focused on the issues raised in the Basel Committee for Banking Supervision’s consultative document, Monitoring indicators for intraday liquidity management. Building on collective expertise developed through various intraday liquidity studies, the PRC is pleased to offer recommendations for the proposed monitoring indicators for intraday liquidity management.
Global Payment Liquidity: Private Sector Solutions
Evaluates the potential market demand and possible viability of three proposed private sector intraday liquidity services.
Managing Payments Liquidity in Global Markets: Risk Issues and Solutions
Investigates potential implications for global intraday liquidity arising from recent developments in the global markets and payments environment.
Intraday Liquidity Management in the Evolving Payment System
Examines the impact of the euro, CLS Bank, and CHIPS finality on U.S. dollar intraday liquidity management.
Tri-party Repo
Tri-party Repo Infrastructure Reform Task Force
The Task Force was formed in September 2009 under the auspices of the Payments Risk Committee (PRC), a private sector body sponsored by the Federal Reserve Bank of New York ("the NY Fed"). The Task Force was formed at the request of the NY Fed to address weaknesses that became visible over the course of the recent financial crisis.
Task Force on Tri-Party Repo Infrastructure Payments Risk Committee Final Report
The Tri-Party Repo Infrastructure Reform Task Force ("the Task Force"), under the auspices of the Payments Risk Committee (PRC), released its final report concluding the work of the Task Force in its May 17 2010 report. The Target State outlined in the report directly addresses one of the key infrastructure weaknesses of the U.S. tri-party repo market.
Task Force on Tri-Party Repo Infrastructure Progress Report
The Tri-Party Repo Task Force issued recommendations in May 2010 to reduce the potential for systemic risk in the tri-party repo market. Since that time, the Task Force has continued to meet to secure effective implementation of these recommendations, in particular those relating to changes in operational arrangements and the reduction of intraday credit provided by the Clearing Banks. This Progress Report provides an update on the status of the Task Force's recommendations.
Report of the Tri-Party Repo Infrastructure Reform Task Force
The report presents the Task Force recommendations to enhance the infrastructure supporting tri-party repo transactions.
Task Force on Tri-Party Repo Infrastructure Progress Report
In the interest of transparency and to make the Task Force’s ideas available to a broader audience, the progress report summarizes the Task Force’s progress to date, including draft recommendations and proposals under consideration.
Business Continuity
Resilience to Third-Party Service Provider Disruptions: Lessons from a Tabletop Exercise
Best Practices to Assure Telecommunications Continuity
Identifies best practices for financial institutions and payment and settlement utilities to avoid and rapidly recover from telecommunication outages.
Payments System Risk
Recommendations for Supporting Clearing Member Due Diligence of Central Counterparties
The Payments Risk Committee (PRC) today released a report outlining recommendations for central counterparties (CCPs) on the transparency of risk management practices to support clearing member due diligence. The PRC believes that reporting of risk management practices at CCPs is fundamental to enable clearing members to conduct their own due diligence on the risks they face as clearing members. The report also recommends a common framework for reporting, which is expected to encourage greater consistency in reporting across CCPs. This report reflects a joint effort of the PRC member firms and eight CCPs.
Report of the Joint Task Force on the PSR Policy Consultation Paper
A joint report of the Payments Risk Committee and Wholesale Customer Advisory Group that reviews some of the underlying activities and processes that contribute to late day funds transfer activity on the Fedwire Funds Transfer System.
Foreign Exchange Settlement Risk
Assesses the impact of the CLS Bank and overall progress in reducing foreign exchange settlement risk.
Report on Cross-Border Risks
Analyzes risks and issues associated with cross-border securities settlement.
Financial Market Infrastructures
PRC's comment letter on the CPSS-IOSCO consultative report, Principles for financial market infrastructures
In formulating these remarks the Payments Risk Committee (“PRC”) has focused primarily on the issues raised in the cover note to the consultative report on Principles for Financial Market Infrastructures (the “Report”). In addition, these remarks apply primarily to central clearing counterparties (“CCPs”), but in some cases the underlying principles are relevant to other FMIs.
Financial Market Infrastructure Risk
A study of how global banks assess, measure and manage the risks associ ated with participating in systems handling payments, clearing and settlement in the U.S. and around the world.