Automated Claim Adjustment Process (ACAP) Depository Institution Testing
All participants and service providers should plan to participate in ACAP testing in the Depository Institution Testing (DIT) environment. The Federal Reserve Banks will communicate the ACAP DIT testing schedule, requirements, and guidelines.
Even if a participant does not intend to use ACAP services, the participant may receive securities transfer messages that include an ACAP tag from other participants, which automatically triggers ACAP tracking. If the Fedwire® Securities Service determines that a transaction, or repo/securities lending positions created via a transaction, will result in claims, those claim adjustments will be made automatically on the adjustment date, regardless of the participants intent to use ACAP services. The Fedwire Securities Service will notify participants of their upcoming claim adjustments via the Adjustment Notification statement transmitted the evening of the business day prior to the adjustment date. Once a claim adjustment debit or credit is made, the participant will be notified of the debit or credit to its master account via a new incoming claim adjustment credit/debit message.
It is highly recommended to test early in the DIT period to allow adequate time to successfully complete the steps needed to create repo and/or securities lending positions in the DIT environment that will effect claim adjustments and to allow yourself time to adjust your own processes and systems if needed. Sequential steps that need to be taken are dependent on the security and transaction type of ACAP claim adjustment being tested, the institution’s securities holdings, and the associated record dates and payment dates of those holdings.
Participants and service providers need to be mindful of the refresh schedule in the DIT environment as all data, including any testing activity since the last refresh, will be replaced with production environment data.
Participants and service providers who test before the ACAP enhancements go into effect will be prioritized for support in the event of an issue after implementation.
The first DIT period has been closed, and Phase 1 was implemented into production on January 30, 2023.
The second DIT period has been closed on July 31, 2023.
Due to the postponement of the implementation of Phase 2, additional testing opportunities will be announced when a new implementation is determined. The Federal Reserve Banks continues to work with the industry workgroup on an implementation plan for Phase 2. Further details will be provided when available.
Upon Phase 2 production implementation, ACAP tracking will be eligible on all coupon-paying securities issued over the Fedwire Securities Service and include securities lending transactions. The Fedwire Securities Service will also introduce new Securities Lending Balance Statement and Claim Adjustment Notification for Securities Lending upon implementation of Phase 2.
FedLine Direct® Customers
To validate FedLine Direct customers’ readiness for the implementation of the ACAP enhancements, the Federal Reserve Banks highly recommend all FedLine Direct participants and their service providers to participate in the second DIT period to test Phase 2 enhanced enhancements.
FedLine Advantage® Customers
FedLine Advantage customers that receive their Fedwire Securities statements via the FedLine Direct Solution (i.e., FedLine Direct File, FedLine Direct Message) or FedLine Command® channels may need to make changes or add controls to their internal applications to receive and process ACAP statements. The Federal Reserve Banks highly recommend these FedLine Advantage customers to participate in the second DIT period to test Phase 2 enhancements. The FedPayments® Manager — Securities application will be modified to enable Fedwire Securities Service participants that use the application through the FedLine Advantage access solution to use the ACAP enhancements function (i.e., originate a securities transfer message with an ACAP field tag, receive incoming claim adjustment messages and statements).
The Federal Reserve Banks highly recommend FedLine Advantage participants who export incoming messages through the FedPayments Manager — Securities application to participate in testing to ensure downstream operations can process new claim adjustment messages.
ACAP Enhancements Testing Registration
Participants and service providers are required to register for each ACAP DIT period by submitting the Fedwire Securities Test Request Form. Please check “Other Testing” and provide in the comments section “ACAP Enhancements Testing 2” for the second DIT period.
For ACAP testing-related questions, you should contact your designated Wholesale Testing Services team.