Automated Claim Adjustment Process Resources and Implementation Center

The Federal Reserve Banks announced in January 2022 the new implementation plan for enhancements to the Fedwire® Securities Service’s Automated Claim Adjustment Process (ACAP). Enhancements were originally announced in 2017 and updated in 2018, but then delayed in 2019 at the request of market participants in order for them to better prepare implementation readiness plans. Based on input from market participants, the Federal Reserve Banks will implement the ACAP enhancements in three phases starting January 2023.

This page contains information about the ACAP enhancement project, including details on the enhancements, project timeline, testing, previous communications and frequently asked questions. We encourage you to bookmark this page as reference as you prepare your institution for the ACAP enhancements.

ACAP Enhancement Project

The ACAP enhancement project includes expanding ACAP tracking to all coupon-paying securities issued over the Fedwire Securities Service, adding securities lending as a transaction type, and shifting the timing of settling claim adjustments from late day via the National Settlement Service to promptly after the relevant principal and interest (P&I) payments are fully paid out to record holders via the Fedwire Securities Service. The current ACAP tracking eligibility is limited to fail, interim accounting, and repo transaction types in connection with coupon-paying agency mortgage-backed securities. ACAP adjustments are currently affected through the National Settlement Service at approximately 4:30 p.m. ET on P&I payment dates.

Please refer to Clearing Memo #278 for detailed ACAP enhancements information, and technical and operational implementation implications. Clearing Memo #278 will supersede all previously published clearing memos relating to ACAP once the first phase goes into effect in January 2023.

ACAP Resources

As the Federal Reserve Banks advance the ACAP enhancement project, content on this page will be updated. We will inform you of additional implementation and testing guidelines through announcements, webinars, clearing memos and other communications at appropriate times throughout the project.

Project Timeline

Learn more about the timeline of the ACAP enhancement project. Implementation will be in three phases with a Depository Institution Testing (DIT) period prior to the implementation of each phase.

  • Depository Institution Testing (July 7, 2022 to December 29, 2022) — six-month testing period to test Phase 1 functionalities. We recommend testing of Phases 2 and 3 functionalities in the same test period if ready.
  • Phase 1 (January 30, 2023) — Implement the new method and earlier timing of settling claim adjustments and new reporting.
  • Depository Institution Testing (Dates to be determined) — Additional testing period.
  • Phase 2 (April 3, 2023) — Expand fail and repo tracking to all coupon-paying securities issued over the Service.
  • Depository Institution Testing (Dates to be determined) — Additional testing period.
  • Phase 3 (August 7, 2023) — Expand ACAP tracking to securities lending transactions across all coupon-paying securities issued over the Service.

Depository Institution Testing

Participants and service providers should plan to participate in the ACAP testing in the DIT environment to prepare for implementation. Participants and service providers are expected to validate technical and operational readiness for the phased rollout of the ACAP enhancements in the DIT environment prior to each implementation date. The Federal Reserve Banks will communicate the ACAP DIT testing schedule, requirements and guidelines prior to the start of each testing period.

Communications Center

Read the latest and historical announcements made on the ACAP enhancement project.

Frequently Asked Questions

Find answers to the questions that you may have. The Federal Reserve Banks are committed to providing the information you need related to the ACAP enhancement project for the Fedwire Securities Service.

Questions

For general ACAP-related questions, you can reach out to the Fedwire Securities Service contact at the East Rutherford Operations Center: (800) 390-2788. For ACAP testing-related questions, you should contact your designated Wholesale Testing Units service team.

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