Update on the Enhanced Automated Claim Adjustment Process (ACAP) Project

May 20, 2020

The Federal Reserve Banks continue to work to identify a feasible implementation date for enhancements that will expand the Automated Claim Adjustment Process (ACAP)1 to include additional tracking capabilities and better align claim adjustments to when principal and interest (P&I) payments are made to Fedwire Securities Service participants (participants). For participant planning purposes, the Federal Reserve Banks confirm that implementation of ACAP’s enhancements will occur no earlier than the third quarter of 2021.

As a reminder, the originally scheduled October 2019 implementation was initially delayed at the request of industry participants due to concerns regarding readiness. In December 2019, the Federal Reserve Banks announced (Off-site) that implementation was further delayed beyond the second quarter of 2020 to give industry participants additional time to ensure readiness. Looking ahead, the Federal Reserve Banks aim to confirm and communicate a new implementation date in the third quarter of 2020.

Customer testing of the ACAP enhancements in the Depository Institution Testing (DIT) environment remains closed. The Federal Reserve Banks will announce the resumption of ACAP enhancement-related testing in the DIT environment along with the announcement of the new ACAP enhancements implementation date. As indicated in the December 2019 communication, such testing in the DIT environment will resume at least six months prior to the new implementation date.

Questions regarding this communication should be directed to the Fedwire Securities Service contact at the East Rutherford Operations Center: (800) 390-2788.

Footnote

1The Fedwire Securities Service currently offers the ability to automate fail-tracking, interim-accounting, and repo-related adjustments to P&I payments between participants through ACAP only for mortgage-backed securities issued or guaranteed by government agencies and government-sponsored enterprises.

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