Fedwire (the Federal Reserve Wire Network , the Federal Automated Money Transfer System [1] ) is an electronic system for real-time gross settlements managed by Federal Reserve Banks and allowing money transfer between participants (as of 03/19/2009 over 9289 [2] ). Credit institutions connected to the Fedwire network make over 99% of all payments in the United States. [3]
Together with the Clearing House Interbank Payments System (CHIPS) , managed by a private Clearing House Payments Company , Fedwire is the main US network for large transfers or immediate domestic and international payments. As a rule, translation is carried out within a few minutes. The system is designed to be as fault-tolerant as possible and have redundancy.
The average amount of daily transfers in 2007 was approximately 2.7 trillion dollars, the average number of payments was approximately 537,000. [4]
History
The transfer of electronic transfers by federal reserve banks began in 1915 . In 1918, banks created a telecommunications system for processing payments, uniting all 12 reserve banks, the Federal Reserve System, and the US Treasury using telegraph services. Translation of treasury securities became possible in the 1920s. Data transmission was carried out mainly by telegraph until the early 1970s. Until 1981, Fedwire services were provided free of charge and were available only to participating banks. According to the law “On the deregulation of depository institutions and monetary control” ( English Depository Institutions Deregulation and Monetary Control Act , 1980) most of the financial services of federal banks, including remittances and securities custody, began to be provided on a paid basis, and depository institutions those who were not members of the system got access to these paid services. [five]
Notes
- ↑ Federal automated money transfer system Archived on December 27, 2015.
- ↑ Fedwire Participant Directory Archived February 10, 2010. Federal Reserve Financial Services
- ↑ FEDWIRE (FEDWAYR) and other Fed settlement systems
- Annual Annual Data (1987–2014) , Fedwire Funds Service, the Federal Reserve Board
- ↑ Fedwire® and National Settlement Services . Federal Reserve Bank of New York (June 2009). The appeal date is March 10, 2015.