New Details on Fedwire® Funds Service November 2022 Release

January 25, 2022

As previously announced, the Federal Reserve Banks will implement changes to the Fedwire Funds Service’s proprietary message format effective November 21, 2022. The changes support cross-border ISO® 20022 interoperability via a market practice when SWIFT, TARGET2 operated by the European Central Bank, and EURO1 operated by EBA Clearing are expected to begin supporting fully enhanced ISO 20022 messages.

Overview of Tag {8200} Changes in Fedwire Funds Service

The changes described below will be made to tag {8200} Unstructured Addenda Information.

  • Tag {8200} will be added as an optional tag in bank transfer (BTR) and cover payment (CTP COVS) messages. Please note that tag {8200} is already available in customer transfer (CTP) messages.
  • The format of tag {8200} will be changed to:
    1. Eliminate Element 01 Addenda Length
    2. Increase the overall length from 8,994 to 9,000 characters
    3. Require the four characters <<>> to denote the end of the data in tag {8200} (these characters will not be counted toward the 9,000-character limit)

All Fedwire Funds Service participants must be able to receive messages that include tag {8200}. Additionally, Fedwire Funds Service participants that are SWIFT members should be able to send messages that include tag {8200} if they plan to follow the ISO 20022 U.S. market practice discussed below.

ISO 20022 U.S. Market Practice to map SWIFT ISO 20022 messages to the Fedwire Funds Service

The Federal Reserve Banks collaborated with the industry to create a market practice that SWIFT members who receive ISO 20022 messages can follow to map the SWIFT ISO 20022 message to the proprietary Fedwire Funds Service message format.1 The ISO 20022 U.S. market practice was previously published on the Fedwire Funds Service private page (Off-site) on SWIFT’s MyStandards® platform in September 2021, but based on industry feedback, certain revisions have been made to simplify the market practice:

  • Removed the code “TDAT” and market practice related to mapping an unlikely scenario in which an ISO 20022 message is larger than 9,000 characters
  • Added codes “TMPY” and “TMPN” to indicate whether the transaction was received through SWIFT’s Transaction Management Platform (TMP); these codes are used along with code “XDAT”

Please refer to the revised ISO 20022 U.S. market practice document available on MyStandards (Off-site) for details on sending and receiving messages that include tag {8200}. Please note that tag {8200} should only be used in support of the ISO 20022 U.S. market practice beginning November 21, 2022. The Federal Reserve Banks will not enforce or monitor proper usage of the ISO 20022 U.S. market practice. Additional documents related to the November 2022 release are available on MyStandards (Off-site). The use of MyStandards is free and does not require SWIFT membership. If you have not obtained access to MyStandards, please contact your account executive to start the onboarding process.

Testing Requirement and Availability

The Federal Reserve Banks have established the Fedwire Funds Service November 2022 release testing requirements and a targeted communication will be sent to notify those participants and service providers that meet the mandatory testing criteria. We will make tag {8200} changes available in the Depository Institution Testing environment on March 2, 2022 for all Fedwire Funds Service participants and service providers to start testing.

Federal Register Notice on Overall ISO 20022 Migration Plan

The comment period to collect feedback on the Federal Register Notice (Off-site) for the revised plan for migrating the Fedwire Funds Service in a single-day implementation to fully-enhanced ISO 20022 messages no earlier than November 2023 ended on January 4, 2022. We will share a separate communication to announce additional details about the overall ISO 20022 migration plans for the Fedwire Funds Service when the Board of Governors of the Federal Reserve System issues a final notice.

For questions regarding this communication, please contact your respective Fedwire Customer Support.

Footnote

1If you are not a SWIFT member, then you will never receive an ISO 20022 message via the SWIFT network and the market practice does not apply to your organization. However, it is possible that another Fedwire Funds Service participant could send you a Fedwire Funds Service message that contains tag {8200} and you may wish to return that message.

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