Automated Claim Adjustment Process (ACAP) Frequently Asked Questions

Enhancements and Implementation Plan

1. What changes are included in the multi-phased ACAP enhancement project?
   • Expanding ACAP tracking to all coupon-paying securities issued over the Fedwire^® Securities Service.
   • Adding securities lending as a transaction type.
   • 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.
   • Modifying existing ACAP statements and introducing new ACAP statements, including Securities Lending Balance Statement, Claim Adjustment Notification for Securities Lending, and Unprocessed Claim Notification.

   Please refer to Clearing Memo #278 for detailed ACAP enhancements information, and technical and operational implementation implications.
    
2. What has changed since the project was announced in October 2018?

   The Federal Reserve Banks will make the following changes to the ACAP enhancements that were announced in the October 2018 communication.

   • The project will be implemented in phases beginning in 2023. Phase 1 will be active for participants beginning Monday, January 30, 2023, preceded by the initial ACAP Depository Institution Testing (DIT) period from July 7, 2022, to December 29, 2022. Phase 2 implementation will be active for participants beginning Monday, August 7, 2023, preceded by the second ACAP Depository Institution Testing (DIT) period from January 4, 2023, to July 31, 2023.
   • Fail tracking claim adjustments associated with P&I payments distributed on or before the settlement date of a fail transaction will be released for settlement at approximately 8:45 a.m. ET, not 8:30 a.m. ET, on the next business day after the fail transaction is settled over the Service.
   • Currently, ACAP Notifications are delivered to participants on the evening of the business day prior to the adjustment date except for claim adjustments that will be made on Monday or the day after a holiday, of which the associated ACAP Notifications are transmitted to participants on Sunday evening or the evening of a holiday, respectively. This delivery schedule will change once the ACAP enhancements are implemented such that all ACAP Notifications will be transmitted to participants on the evening of the business day prior to the adjustment date regardless of whether the day prior to the adjustment date is a weekend or holiday.
3. What new functionality will be rolled out in each phase?

   Phase 1 implementation will change the timing and method of settling claim adjustments from late day via the National Settlement Service to promptly after the relevant P&I payments are fully paid out to record holders via the Fedwire^® Securities Service using the new type code 8908 and 8909 securities messages. Claim adjustments will be settled at security/CUSIP^® level.

   The transaction and security types that will be enabled through Phase 1 implementation are unchanged from what is currently eligible: fail, interim accounting, and repo tracking for coupon-paying agency mortgage-based securities (agency MBS).

   The new ACAP report Unprocessed Claim Notification and all existing ACAP statements (i.e., Repo Balance Statement, Claim Adjustment Notifications for Fail, Interim Accounting, Repo) with a new reporting format will also be implemented via Phase 1. Any existing online inquires (e.g., Clearing Summary, Endpoint Grand Totals) and end-of-day reports (e.g., Detailed Activity Statement) that contain total cash debit/credit made to a participant’s master account for the Cycle Date will also include debits and credits effected through claim adjustments.

   Phase 1 also introduces a new billing structure, including new billing codes
   Please see billing related FAQs below and the fee schedule on FRBServices.org for additional information and details about the billing codes and fees.

   Phase 2 will expand eligibility for ACAP tracking to all coupon-paying securities issued over the Service (i.e., coupon-paying U.S. Treasury and agency debt securities). In addition, Phase 2 will expand ACAP tracking to securities lending transactions across all coupon-paying securities issued over the Service. A new Securities Lending Balance Statement and Claim Adjustment Notification for Securities Lending will also be implemented via this phase.

4. Will ACAP tracking expand to non-coupon-paying securities in connection with repo and securities lending/borrowing balances?

   No, non-coupon-paying securities will not be included in the ACAP enhancement project in 2023. However, the Federal Reserve Banks will consider adding non-coupon-paying securities to ACAP tracking for repo and securities lending balances as a future service enhancement.

5. Did the implementation date of Phase 1 change?
   The announcement on January 18, 2022, New Implementation Plan for the Automated Claim Adjustment Process Enhancements, indicated Phase 1 will be implemented on Saturday, January 28, 2023. The Federal Reserve Banks will deploy code into production on that date; however, the Phase 1 will not be effective for use until Monday, January 30, 2023.
    
6. Did implementation plan change since the phased approach was announced in January 2022?

   At the request of industry participants, the plan did change to only a two-phase implementation plan. Phase 1, as previously announced, will remain unchanged with an effective date of Monday, January 30, 2023, and included the change in timing and method of settling of claim adjustments. Phase 2 will now include the expansion of both securities and transaction types eligible for ACAP tracking that will go into effect on Monday, August 7, 2023.
    

Implementation Preparation 

1. When will I begin receiving the new ACAP reports?
   The Fedwire Securities Service will transmit the new Phase 1 ACAP reports (i.e., Claim Adjustment Notifications, Repo Balance Statement and Unprocessed Claim Notification) to participants beginning the evening of January 30, 2023.  The Reserve Banks will transmit all ACAP reports to participants on the evening of a Fedwire business day; the Reserve Banks will not send ACAP reports to participants on Sunday or a holiday evening.  See Clearing Memo #278 − Section VI. End-of-Day ACAP Reporting for ACAP reports delivery medium and schedules.
    
2. How often will I receive the new Unprocessed Claim Notification?

   The Fedwire Securities Service will only generate and deliver the Unprocessed Claim Notification (MSG-ID: BA2074, Content Type: BAUC) to you when you have a claim that will not be processed by the Fedwire Securities Service that would otherwise be processed on the next Fedwire Securities business day. See Clearing Memo #278 (PDF) − Section VI. End-of-Day ACAP Reporting: Unprocessed Claim Notification, which outlines the various reasons that a claim will not be processed and will be reported on this new Notification. If the counterparties associated with an unprocessed claim on the Unprocessed Claim Notification desire to complete the claim adjustment, they must resolve the claim outside the Fedwire Securities Service. The Reserve Banks will take no further action with respect to such claims.
    

3. How will I receive the new Unprocessed Claim Notification?

   The Fedwire Securities Service will deliver the Unprocessed Claim Notification to you automatically in the same statement medium (i.e., FedLine Direct File, FedLine Command®, FedLine Direct Message, FedLine Advantage solution, or FedMail®) you receive your Immediate Principal and Interest Notification (MSG-ID: BA2040, Content Type: BAPI).

   For participants who will receive the new Unprocessed Claim Notification via the FedLine Direct File or FedLine Command solution, the new Unprocessed Claim Notification will be routed to the same destination (e.g., Connect:Direct1 Node) where you receive your Repo Balance Statement (MSG-ID: BA2080, Content Type: BARB). If you use a customized report submit process or you want this Notification to be routed to a different destination, you will need to contact the FedLine Direct and FedLine Command Support (1-888-881-6700 and select Option 2).

   Since the Fedwire Securities Service will only generate this new Notification upon certain conditions, participants are encouraged to validate your ability to receive this report by contacting your designated Wholesale Testing Unit to schedule a test.

   ¹"Connect:Direct" is a registered trademark of IBM International Group B.V., an IBM Company.
    

4. I subscribe to the Financial Institution Reconcilement Data (FIRD) file. Will the FIRD file include the new Securities ACAP entries?

   Yes, the FIRD file will include the new Securities ACAP entries if you subscribe to the FIRD file for your master account and subscribe to include Fedwire details in the file. The new ACAP type code 8908 and 8909 records will be found in the Fedwire detail section in the FIRD file.

   If you only subscribe to the FIRD file for your master account and exclude Fedwire details in the file, your ACAP claim adjustment information will be included in the summarized line under transaction code 20801 in the file without detailed entries.
    

5. Will ACAP adjustments continue to be reported under Transaction Code: 11101?
   No, Transaction Code: 11101 of the National Settlement Service account activity will no longer be used once ACAP Phase 1 enhancements are implemented.  ACAP adjustments will be reported under Transaction Code: 20801 of the Fedwire Securities Service account activity once Phase 1 of ACAP enhancements become effective on January 30, 2023.
    
6. Who should I contact if I have post implementation questions?

   For ACAP post-implementation questions, you should contact the East Rutherford Operations Center for the Fedwire Securities Service at (800) 390-2788.  
    

Implementation Status 

1. How will I know whether Phase 1 has been successfully implemented into production?
   The status of Phase 1 implementation will be posted on the Service Status page on FRBservices.org on Saturday, January 28, 2023 evening, between 8:00 p.m. and 10 p.m. ET. Participants and service providers should refer to the Service Status page for the most timely update on the implementation status.
    
2. What happens if Phase 1 is not implemented successfully into production?
   In the unlikely event that we encounter significant issues that cannot be resolved during implementation weekend, the contingency plan is to revert to the existing ACAP functionality until we can implement ACAP Phase 1 on the backup date.  In such a scenario, participants will continue to settle ACAP claims though the National Settlement Service at approximately 4:30 p.m. ET and continue to receive ACAP reports in the existing format starting the evening of Monday, January 30, 2023. April 3, 2023 has been reserved as a back-up date for implementation of Phase 1. In the unlikely event of this occurrence, the Service Status page would be update with this status by 10 pm Saturday night.
    

Phase 1 – Day 1 (January 30, 2023)

1. Will claim adjustments be made on Day 1 of the enhanced ACAP Phase 1 implementation?

   The Reserve Banks will not process ACAP claims on Day 1 through either the Fedwire Securities Service or National Settlement Service to minimize the Phase I implementation risk.  The Fedwire Securities Service will not create or settle new type code 8908 and 8909 claim adjustment messages for claims with an adjustment date of January 30, 2023.  This one-day deviation from normal claim adjustment processing is aimed to minimize the implementation risk of ACAP enhancements.
   
   The only possible claims for Day 1 are MBS fail-related claims resulting from the fail transactions settled on Friday, January 27, 2023.  There will be no repo or interim accounting-tracking claims on Day 1 because the last MBS payment date occurs on the 26th of each month.

2. What should I do if I have a claim adjustment that occurs on Day 1?
   Participants with claim adjustments on Day 1 should arrange alternative means outside of the Fedwire Securities Service to resolve the claims with their counterparties.  
3. Will I receive Claim Adjustment Notifications for Day 1 adjustment date?
   The Fedwire Securities Service will transmit the Fail Claim Adjustment Notification (MSG-ID: BA2070, Content Type: BAAF) in the existing report format to participants between 8:00 p.m. and 9:00 p.m. ET on Friday, January 27, 2023 as opposed to Sunday, January 29, 2023, following the current delivery schedule.  Participants are instructed to resolve any claims with an adjustment date of January 30, 2023, reported on the Notification outside of the Fedwire Securities Service.  The claim adjustments will not be processed by the Reserve Banks either through the Fedwire Securities Service or the National Settlement Service.  
4. When will the Fedwire Securities Service resume processing claim adjustments?
   Following a successful implementation of the ACAP enhancements, the Fedwire Securities Service will resume processing claim adjustments on January 31, 2023.  Those claim adjustments will be settled using the new Fedwire Securities Service type code 8908 and 8909 claim adjustment messages. 
5. Will I receive the Repo Balance statement for the cycle date of Friday, January 27, 2023?
   Yes, the Repo Balance statement (MSG-ID: BA2080, Content Type: BARB) ) for the cycle date of Friday, January 27, 2023, will be delivered in the existing report format on normal schedule (i.e., the evening of Friday, January 27, 2023).
6. When will I begin receiving the new ACAP reports?
   The Fedwire Securities Service will transmit the new Phase I ACAP reports (i.e., Claim Adjustment Notifications, Repo Balance Statement and Unprocessed Claim Notification) to participants beginning the evening of Day 1.  The Reserve Banks will transmit all ACAP reports  to participants on the evening of a Fedwire business day; the Reserve Banks will not send ACAP reports to participants on Sunday or a holiday evening.  See Clearing Memo #278 − Section VI. End-of-Day ACAP Reporting for ACAP reports delivery medium and schedules.

New Fees and Billing Structure

1. Will I be charged differently for using ACAP once the enhancements are implemented?
   Upon implementation of ACAP Phase 1 on Monday, January 30, 2023, the following ACAP fees changes will be effective.

   • Claim Adjustment Fees – The fail claim adjustment fee will be replaced by two separate fees: the fail claim adjustment fee (debit) and the fail claim adjustment fee (credit). The Fedwire Securities Service will continue to charge interim accounting and repo claim adjustment fees. The Fedwire Securities Service will activate the new securities lending claim adjustment fee once Phase 2 is implemented.
   • Tracking Indicators Fees – Both sender and receiver of a repo-tracking message (i.e., a securities transfer message with a repo tag in free text line) will be charged for the tag fee. Similar securities lending tag fees will be activated once Phase 2 is implemented.
   • Positions Maintenance Fees – Participants will be charged a fee for each repo-out and repo-in balance maintained on the Fedwire Securities Service per Fedwire Securities business day. A similar securities lending position maintenance fee will be activated once Phase 2 is implemented.

   
   Please refer to the Fedwire Securities Service 2023 Fee Schedules at FRBservices.org for the comprehensive ACAP fees details.
    
2. When will the new fees be reflected on my bill?

   The new ACAP fees go into effect on January 30, 2023. Starting February 2023, customer bills will reflect the new ACAP product billing codes should customers have any ACAP related activity on January 30-31, 2023.

   Note: February 2023’s invoice will reflect both the new ACAP billing structure as well as the old billing structure. 
    

Technical and Operational Inquiries

1. Will there be a new clearing memo, or will previous clearing memos be updated with the technical and operational information related to ACAP enhancements?

   The Federal Reserve Banks issued a new Clearing Memo #278 on April 4, 2022. Fedwire Securities Service participants should refer to the new Clearing Memo #278 for the technical and operational information related to the enhanced ACAP service. Clearing Memo #278 will supersede all previously published clearing memos relating to ACAP (#219, #220, #221, #226, #236, #240, #243, #246, and #251) on January 30, 2023, when Phase 1 goes into effect.

2. Where can I find the technical specifications for enhanced ACAP?

   Fedwire Securities Service participants should refer to the Fedwire Application Interface Manual (FAIM) version 2.0.2 for Fedwire Securities Service for the technical layouts for the new claim adjustment messages and ACAP statements. Participants’ End User Authorization Contacts (EUAC) can request a copy of the technical document, FAIM version 2.0.2 from the Customer Contact Center. The FedPayments-Manager for Securities Export File layout (i.e., FedPayments_Securities_File_Export_Specification_FLA_Customer_v1.0) was also modified to incorporate the technical layout for the new incoming claim adjustment messages.

   Note: The Fedwire Securities Service recently issued a revised FAIM version 2.0.3 and FPM-Securities File Export specification version 1.1. The revisions include minor modifications and clarifications to the ACAP-related documentation concerning mismatches between the ACAP technical layouts and the software. The revisions were sent to participants’ EUACs in December 2022.

3. How often will I receive the new Unprocessed Claim Notification?

   The Fedwire Securities Service will only generate and deliver the Unprocessed Claim Notification (MSG-ID: BA2074, Content Type: BAUC) to you when you have a claim that will not be processed by the Fedwire Securities Service that would otherwise be processed on the next Fedwire Securities business day. See Clearing Memo #278 (PDF) − Section VI. End-of-Day ACAP Reporting: Unprocessed Claim Notification, which outlines the various reasons that a claim will not be processed and will be reported on this new Notification. If the counterparties associated with an unprocessed claim on the Unprocessed Claim Notification desire to complete the claim adjustment, they must resolve the claim outside the Fedwire Securities Service. The Reserve Banks will take no further action with respect to such claims.

4. How will I receive the new Unprocessed Claim Notification?

   The Fedwire Securities Service will deliver the Unprocessed Claim Notification to you automatically in the same statement medium (i.e., FedLine Direct File, FedLine Command^®, FedLine Direct Message, FedLine Advantage solution, or FedMail^®) you receive your Immediate Principal and Interest Notification (MSG-ID: BA2040, Content Type: BAPI).

   For participants who will receive the new Unprocessed Claim Notification via the FedLine Direct File or FedLine Command solution, the new Unprocessed Claim Notification will be routed to the same destination (e.g., Connect:Direct¹ Node) where you receive your Repo Balance Statement (MSG-ID: BA2080, Content Type: BARB). If you use a customized report submit process or you want this Notification to be routed to a different destination, you will need to contact the FedLine Direct and FedLine Command Support (1-888-881-6700 and select Option 2).

   Since the Fedwire Securities Service will only generate this new Notification upon certain conditions, participants are encouraged to validate your ability to receive this report by contacting your designated Wholesale Testing Unit (WTS) to schedule a test.

   ¹ “Connect:Direct” is a registered trademark of IBM International Group B.V., an IBM Company.

5. I subscribe to the Financial Institution Reconcilement Data (FIRD) file. Will the FIRD file include the new Securities ACAP entries?

   Yes, the FIRD file will include the new Securities ACAP entries if you subscribe to the FIRD file for your master account and subscribe to include Fedwire details in the file. The new ACAP type code 8908 and 8909 records will be found in the Fedwire detail section in the FIRD file.

   If you only subscribe to the FIRD file for your master account and exclude Fedwire details in the file, your ACAP claim adjustment information will be included in the summarized line under transaction code 20801 in the file without detailed entries.

6. Will ACAP adjustments continue to be reported under Transaction Code: 11101?
   No, Transaction Code: 11101 of the National Settlement Service account activity will no longer be used once ACAP Phase 1 enhancements are implemented.  ACAP adjustments will be reported under Transaction Code: 20801 of the Fedwire Securities Service account activity once Phase 1 of ACAP enhancements become effective on January 30, 2023.
    
7. My firm would like to use enhanced ACAP for outstanding repo balances that currently are not tracked by ACAP. How can my firm convert these outstanding repo balances so that they are tracked by enhanced ACAP?

   To convert outstanding repo balances in connection with Treasury and non-Treasury debt securities to the enhanced ACAP, the participant with the Repo-Out balance will need to initiate a type code 2090 service message with the Repo Balance Only Adjustment field tag (i.e., {22F:ADRP}) in a free text line of the message. Once the Fedwire Securities Service processes this service message, it will record and maintain sender and receiver’s Repo-Out and Repo-In balances, respectively, without transferring the securities. The same approach applies to converting outstanding securities lending balances in connection with any securities issued over the Fedwire Securities Service to the enhanced ACAP by using the Securities Lending Balance Only Adjustment field tag (i.e., {23F:ADSL}) in a free text line of the service message.

   Participants can convert outstanding repo and securities lending balances for coupon-paying Treasury and non-Treasury debt securities after Phase 2 goes into effect.

8. My firm currently uses repo tracking to track MBS securities lending transactions. How can my firm convert these to securities lending tracking?

   Participants who currently use repo tracking to track MBS securities lending balances can convert those repo balances to securities lending balances by taking the following two steps after Phase 2 goes into effect.

   • Step 1 – The participant with the Repo-In balance must first adjust the repo balance by initiating a type code 2090 service message with the Repo Balance Only Adjustment Reversal field tag (i.e., {22F:ADRV}) in a free text line of the message.
   • Step 2 – To establish the securities lending balance in the enhanced ACAP, the participant with the Securities-Lent balance must initiate a type code 2090 service message with the Securities Lending Balance Only Adjustment field tag (i.e., {23F:ADSL}) in a free text line of the message. Once the Service processes this service message, it will record and maintain sender’s and receiver’s Securities-Lent and Securities-Borrowed balances, respectively, without transferring the security.

   Once both steps are taken, the MBS repo balance will no longer be reported on the participants’ Repo Balance Statement and will instead be reported on the participants’ Securities Lending Balance Statement.

Depository Institution Testing (DIT)

1. When will ACAP DIT testing begin and what is the scope of testing given the phased implementation approach?

   The first ACAP DIT period is to begin July 7, 2022, and end December 29, 2022, followed by the implementation of Phase 1. The subsequent DIT period prior to the implementation of Phase 2 is to begin January 4, 2023, and end July 31, 2023.

   We expect participants and service providers to complete a comprehensive end-to-end testing for all ACAP enhancements. Participants and service providers will need to test the enhancements of each phase in the DIT prior to the implementation of the phase. Those who choose to will be able to test all three phases in the initial six-month DIT period.

2. How do I prepare for testing of Phase 1 testing?

   Successful testing of Phase 1 functionality is dependent on a number of factors that should be reviewed and considered.

   Do you hold MBS in your account in the DIT environment? Enhancements made in Phase 1 will only apply to MBS. Therefore, it is essential to hold MBS in the securities account(s) you are testing as claim adjustments will only be made on MBS.

   What are the record dates and payment dates of the MBS on which you are expecting to see a claim adjustment? Record dates and payments dates of the MBS in the DIT environment will be the same as they would be in the production environment.

   Whether you have any repo positions open in the DIT that were replicated from production environment data? Claim adjustments will be effected on any repo positions open including repo positions that were replicated from the production environment.

   Have you requested statements? Statements will not be automatically sent and need to be requested each time.

3. How do I prepare for testing of Phase 2 testing?

   Successful testing of Phase 2 functionality is dependent on a number of factors that should be reviewed and considered.

   Do you hold in your account coupon-paying Fed-eligible securities that will incur interest payments during the timeframe you are testing in the DIT environment? Claim adjustments will be made on securities in the DIT as they are in the production environment. It is essential to be coordinate which securities are tagged for ACAP claim adjustment that will result in a claim adjustment within the testing timeframe.

   Will you be testing ACAP tracking on a securities lending transaction? If so, you will need to be mindful of the record dates and payments dates of the MBS securities you will be using to test as the dates will be the same as they would be in the production environment. You will also need to be mindful of when you open the position and expect the resulting claim adjustment so that both are within two refresh dates.

   Have you requested statements? Statements will not be automatically sent and need to be requested each time.

4. What if there are no MBS holdings in our account in the DIT environment?

   Enhancements occurring in Phase 1 only apply to MBS and therefore testing of Phase 1 functionality in the DIT is dependent on MBS holdings.

   During testing, the Wholesale Testing Service will not be able to send incoming securities transfer wires to your institution if you do not hold MBS and will require working with another institution to test. By coordinating with another institution testing in the DIT, that other institution can send your institution a securities transfer wire of a MBS to test with.

5. What is a “refresh” in the DIT?

   The data in the DIT environment will be “refreshed” or reset periodically to replicate the production environment as of the last business day of the prior month. Therefore, any securities holdings and repo positions that are open in the production environment on the last business day of the prior month to the refresh will be replicated in the DIT environment, and any positions created in the DIT environment prior to the refresh will be overwritten.

   Refreshes in the first DIT period are scheduled for July 6, September 1, and November 1, 2022 and will be updated with production data as of June 30, August 31 and October 31, 2022, respectively.

   Refreshes in the second DIT period are scheduled on January 3, February 1, April 3, and June 1, 2023 and will be updated with production data as of December 30, 2022, January 31, March 31, and May 31, 2023, respectively.

6. Why were subsequent ACAP DIT testing opportunities provided for Phases 2?

   The Federal Reserve Banks acknowledge that some participants and service providers will need additional time to complete testing of both phases. As such an additional testing opportunity will be provided prior to Phase 2 for participants and service providers to complete and validate the software.

7. Will the functionality for Phases 2 be available for enhanced ACAP testing in the DIT during the six-month testing period prior to the Phase 1 implementation?

   Yes. ACAP tracking for additional transaction and security types that will be implemented through Phase 2 will be available in the DIT during the initial six-month testing period. The Federal Reserve Banks are looking for participants and service providers to volunteer to complete the testing of ACAP-related changes for both phases in the six-month period if they are ready. Be advised, however, enabling of Phase 2 functionalities in the DIT within the initial six-month testing period will begin on October 4, 2022.

8. When will the Federal Reserve Banks provide participants with the ACAP DIT testing guidelines and schedule for the ACAP enhancement project?

   The Federal Reserve Banks plan to communicate the ACAP DIT testing guidelines and schedule in the second quarter of 2022.

9. Will there be any changes to the original ACAP DIT testing requirements communicated to participants in April 2019?

   The Federal Reserve Banks are in the process of reassessing the original ACAP DIT testing approach and testing requirements to determine if there is an opportunity to enhance the ACAP DIT customer testing experience. We will communicate any the changes to participants and service providers in the above-mentioned ACAP DIT testing communication.

10. How does my organization register for testing in the DIT?
    Participants and service providers need to submit a Test Request Form (Off-site) for each testing period. On the form, please select “Other Testing” under Testing Type and provide in the comments section either “ACAP Enhancements Testing" for the first DIT period or “ACAP Enhancements Testing 2” for the second DIT period.
11. Who should I contact if I have questions related to the ACAP DIT testing?
    For ACAP testing-related questions, you should contact your designated Wholesale Testing Units service team.

General Questions

1. If my firm does not plan to use ACAP or is not ready to use enhanced ACAP, can we “opt out”?

   There is no “opt in” or “opt out” feature for ACAP.
   
   Fail, repo, and securities lending tracking is automatically enabled for a receiver of a securities transfer by the sender of the securities transfer message initiating a fail, repo, or securities lending transaction, respectively. Interim accounting tracking is automatically enabled with respect to both sender and receiver when a sender sends a securities transfer message to transfer an MBS that has a different Record Date and Beneficiary Date. Therefore, even if a participant does not intend to use the enhanced ACAP or decides to start using it at a later date, that participant could still receive ACAP transactions (i.e., fail, interim accounting, repo or securities lending transactions) originated by other participants. Those ACAP transactions trigger ACAP tracking and result in the receiving participant receiving ACAP statements and claim adjustments regardless of whether the receiver of the message elects to use ACAP services. Given this, we encourage all participants to add controls to their Fedwire Securities Service interface applications and/or internal applications to properly handle any unanticipated ACAP transactions, the new claim adjustment messages, and ACAP statements to avoid technical or operational disruptions resulting from receiving those unanticipated messages and statements.

2. As my organization prepares for the implementation of the ACAP enhancements, what should I do if I have questions related to the ACAP enhancement project?

   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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