District Circular Letters

November 24, 1998

NET SETTLEMENT PAYMENT SERVICES:
ENHANCED SERVICE TO DEPOSITORY INSTITUTIONS

To All Depository Institutions
in the Twelfth Federal Reserve District

Final Approval of Enhancements to the Net Settlement Payment Services (Docket R-0974)

The Federal Reserve Board has announced plans for providing an enhanced settlement service to depository institutions. The enhanced service combines and improves selected features from the Federal Reserve Banks' existing net settlement services.

Under the enhanced service beginning March 29, 1999, the Federal Reserve Banks will offer a fully automated settlement service that provides participants in clearing arrangements with finality of settlement intraday on the settlement date. This enhancement allows settling participants with an on-line mechanism to submit settlement information electronically to the Federal Reserve Bank.

In addition to the benefit of increased operational efficiency, the enhanced service is intended to reduce the duration of settlement risk for private-sector clearing arrangements.

Copies

Copies of the Board's notice (Docket R-0974) are available from our Corporate Services Department. To request copies to be sent via mail, please call (415) 974-2748. To request copies to be sent via fax, please call (415) 974-3333, and specify document number 4161.

Additional Information

For additional information regarding the Federal Reserve Net Settlement Payment Services, please contact Mr. Doug Hollowell, Supervisor, Revenue and Interdistrict Accounting, at (415) 974-2147.

FEDERAL RESERVE BANK OF SAN FRANCISCO