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Fedwire® Services

Looking beyond 2009

Looking beyond 2009:
Phase 2 for Fedwire
format changes

August 2009

Fedwire Funds Service customers are heading into the final stages of planning and testing for the November 2009 message format changes for cover payments. Meanwhile, we are preparing for the 2010 implementation of a format to support extended-character business remittance information, an improved solution for cover payments and better alignment to SWIFT.

Industry endorses a two-phased approach

These additional changes represent the second half of a two-phased approach to implement industry-endorsed message format changes to support increased cover payments transparency. Input from financial institutions in the 2008 Message Format Survey indicated a clear preference for a two-phased implementation.

The two-phased implementation includes a market convention for cover payments in 2009, followed by a full cover payments and business remittance information solution in 2010.

Introducing a new business function code

Although an exact implementation date has not yet been announced for phase two changes, it will be no earlier than November 2010. The focus of these format changes will be the availability of a new business function code called the customer transfer plus (CTP), which will include new data elements and revised edit rules (see chart below). Other minor changes will apply to all message types. The new CTP message will be an alternative to the classic customer transfer message (CTR); the Federal Reserve Banks will continue to support both messages.

Customer transfers are regularly sent and received by the majority of Fedwire Funds Service customers. All wire originators with online access will have the option to use either the new CTP message or the classic CTR message for customer transfers. However, certain new features, such as the support for cover payments and extended business remittance information, will only be available in the CTP message. Because wire originators will have a choice between the two messages, all customers must be able to receive both, and ensure that internal systems are updated to handle the other minor changes in the format release scheduled for 2010.

All customers are advised to work with vendors and internal software development teams to ensure that any payment applications that interface with the Fedwire Funds Service can receive messages using the new format. External customer-facing systems may also need to be modified to accommodate these changes.

Classic Customer Transfer (CTR) New Customer Transfer Plus (CTP)
Traditional CTR message used today Traditional CTR message used today plus:
√ Payment Notification
√ New Originator Option F Tag (to map to SWIFT field 50a option F)
√ Improved Solution for Cover Payments
√ Related Remittance Information
√ Unstructured Addenda Information (9,000 characters)
√ Structured Business Remittance Information (9,000 characters)

Helping you prepare

To help you prepare for the upcoming changes, the Federal Reserve Banks distributed important documents to all FedLine Direct® customers and FedLine Advantage® customers that use the import and/or export feature of the FedPayments® Manager Funds application. If you are in one of these categories and did not receive the documents, please contact your designated Customer Contact Center. We will continue to provide resources and planning information via an online resource center, which contains a Frequently Asked Questions section, along with detailed mapping and testing information. Interactive teleseminars will also be offered in late 2009 or early 2010 to help you plan for implementation.

To stay informed about the 2010 format changes, visit FRBservices.org regularly, and check FedFocus and FedFlash® for the latest customer information.

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