Modifications to the Federal Reserve Policy on Payment System Risk To Accommodate Enhancement to the Automated Claim Adjustment Process, 79331-79332 [2022-28095]
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Federal Register / Vol. 87, No. 247 / Tuesday, December 27, 2022 / Notices
1. Roger D. Cattle, Lincoln, Nebraska,
and John T. Cattle, Overland Park,
Kansas, as co-voting proxies of the John
W. Cattle, Jr. Bank Stock Marital Trust,
Seward, Nebraska; to become members
of the Cattle Family Group, a group
acting in concert, to retain voting shares
of Cattle Crossing, Inc., and thereby
indirectly retain voting shares of Cattle
Bank and Trust Company, both of
Seward, Nebraska.
Board of Governors of the Federal Reserve
System.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022–28122 Filed 12–23–22; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
[Docket No. OP–1796]
Modifications to the Federal Reserve
Policy on Payment System Risk To
Accommodate Enhancement to the
Automated Claim Adjustment Process
Board of Governors of the
Federal Reserve System.
ACTION: Notice.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) is
revising part II of the Federal Reserve
Policy on Payment System Risk (PSR
policy) to add a posting rule to facilitate
the implementation of enhancements to
the Automated Claim Adjustment
Process (ACAP).
DATES: Applicability Date: January 30,
2023.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Jason A. Hinkle, Deputy Associate
Director (202–912–7805) or Benjamin J.
Hobbs, Senior Financial Institution
Policy Analyst (202–872–7549),
Division of Reserve Bank Operations
and Payment Systems. Cody Gaffney
(202–452–2633), Senior Attorney, Legal
Division, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue, Washington, DC
20551. For users of TTY–TRS, please
call 711 from any telephone, anywhere
in the United States.
SUPPLEMENTARY INFORMATION:
TKELLEY on DSK125TN23PROD with NOTICES
I. Background
Part II of the PSR policy governs the
provision of intraday credit (also known
as daylight overdrafts) in accounts at the
Reserve Banks.1 The PSR policy
includes procedures, referred to as
posting rules, that are used to measure
1 The Board’s PSR policy is available at: https://
www.federalreserve.gov/paymentsystems/psr_
about.htm.
VerDate Sep<11>2014
22:43 Dec 23, 2022
Jkt 259001
account balances. The posting rules
establish settlement times for debits and
credits at Federal Reserve accounts for
different payment types.
The ACAP is a feature of the
Fedwire® Securities Service (‘‘Fedwire
Securities’’ or ‘‘Service’’) that offers
Fedwire Securities participants
(participants) the option to automate
principal and interest (P&I) tracking and
claim adjustments related to
transactions between participants that
settle over Fedwire Securities.2 The
Reserve Banks, in their capacity as fiscal
agents for issuers of securities issued
over Fedwire Securities, make P&I
payments to record-date holders of the
securities.3 For some types of
transactions between participants, such
as repurchase agreements (repos), the
participant identified as the record-date
holder by the Service may not be
entitled to the P&I payment pursuant to
a separate agreement between the
transaction participants. The ACAP
offers an automated way for the recorddate holder to transfer a P&I payment
from its master account to the master
account of the designated participant.
In January 2022 the Federal Reserve
Banks announced phased enhancements
to the Service that will expand ACAP
tracking to all coupon-paying securities
issued over Fedwire Securities, add
securities lending as a transaction type,
and shift the timing of settling claim
adjustments.4 Currently, ACAP
adjustments are settled at approximately
4:30 p.m. ET via the National Settlement
Service (NSS). Most, but not all claim
adjustments are associated with that
day’s P&I payment which are generally
made earlier in the day. The shift in the
timing of settling claim adjustments is
designed to narrow the timing gap
between P&I payments and the
associated claim adjustments. To effect
2 An ACAP claim adjustment is a transfer of funds
from one Fedwire Securities participant to another
participant over the Service.
3 Issuers provide securities record dates and
payment dates information to the Fedwire
Securities Service. As an operational matter, a
participant who is identified by the Service as the
holder of a security after the Service closes on the
business day prior to the security’s record date is
a record-date holder of the security. A record-date
holder of a security is entitled to payment of P&I
on that security, and the P&I payment is distributed
to record-date holders on the payment date
associated with the record date regardless of
whether the participant still holds the security on
the payment date.
4 See FRBServices.org, New Implementation Plan
for the Automated Claim Adjustment Process
Enhancements (Jan. 18, 2022), https://
www.frbservices.org/news/communications/011822fedwire-securities-participants-service-providers.
For the most recent information regarding the
ACAP enhancements, see https://
www.frbservices.org/resources/financial-services/
securities/acap.
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
79331
this shift in timing, the ACAP
enhancements include a design change
to utilize new Fedwire Securities
messages to settle claims, which result
in claim adjustments being effected
promptly after the associated P&I
payments are made. This design change
will be implemented January 30, 2023.
II. New Posting Rule To Accommodate
the ACAP Enhancements
Currently, ACAP adjustments are not
explicitly mentioned in the posting
rules of the PSR policy because ACAP
adjustments are settled using NSS,
which has its own posting rule.5 The
Board is adding a new posting rule to
part II of the PSR policy to reflect the
fact that ACAP adjustments will be
made on a gross basis through Fedwire
Securities throughout the business day.
The ACAP enhancements and the
new posting rule are not expected to
increase risk to the Reserve Banks or the
payment system, even as the ACAP
expands to additional security and
transaction claim types and as claim
adjustment volume increases. ACAP
debit adjustments are small compared to
the participants’ aggregate P&I credits
on a given day and analysis shows that
they are not expected to significantly
impact participants’ master account
balances. In addition, all participants
will be notified of all claim adjustments
before the adjustments are processed.
III. Technical Changes to Text of the
PSR Policy
In addition to the new posting rule to
accommodate the ACAP enhancements,
the Board is modifying footnote 37 of
the PSR policy by adding a hyperlink to
a frequently updated document
containing a list of securities issuers,
including GSEs, rather than listing the
securities issuers directly in the
footnote. This change is not substantive
in nature and reflects current practices
that the Reserve Banks use to administer
the PSR policy.
IV. Federal Reserve Policy on Payment
System Risk
[The following portion titled ‘‘Federal
Reserve Policy on Payment System
Risk’’ will not publish in the Code of
Federal Regulations.]
Federal Reserve Policy on Payment
System Risk
Part II. Federal Reserve Intraday Credit
Policies
Under ‘‘Procedures for Measuring
Daylight Overdrafts’’, revise ‘‘Opening
balance (previous day’s closing
5 NSS entries settle throughout the business day
as the Reserve Banks process NSS files.
E:\FR\FM\27DEN1.SGM
27DEN1
79332
Federal Register / Vol. 87, No. 247 / Tuesday, December 27, 2022 / Notices
TKELLEY on DSK125TN23PROD with NOTICES
balance)’’, ‘‘Post throughout business
day’’ as follows:
A. Daylight overdraft definition and
measurement
*
*
*
*
*
Procedures for measuring daylight
overdrafts 34
Opening balance (previous business
day’s closing balance)
Post throughout the business day:
+/- FedNow funds transfers
+/- Fedwire funds transfers 35
+/- Fedwire book-entry securities
transfers
+/- Fedwire book-entry automated
claim adjustments 36
+/- National Settlement Service entries.
+ Fedwire book-entry interest and
redemption payments on securities
that are not obligations of, or fully
guaranteed as to principal and interest
by, the United States 37
+ Electronic payments for matured
coupons and definitive securities that
are not obligations of, or fully
guaranteed as to principal and interest
by, the United States. 38
The term ‘‘interest and redemption
payments’’ refers to payments of
principal, interest, and redemption on
securities maintained on the Fedwire
Securities Service.
The Reserve Banks will post these
transactions, as directed by the issuer,
provided that the issuer’s Federal
Reserve account contains funds equal to
or in excess of the amount of the interest
and redemption payments to be made.
In the normal course, if a Reserve Bank
does not receive funding from an issuer
for the issuer’s interest and redemption
payments by the established cut-off
hour of 4:00 p.m. eastern time on the
Fedwire Securities Service, the issuer’s
payments will not be processed on that
day.
*
*
*
*
*
34 This schedule of posting rules does not affect
the overdraft restrictions and overdraft
measurement provisions for nonbanks established
by the Competitive Equality Banking Act of 1987
and the Board’s Regulation Y (12 CFR 225.52).
35 Funds transfers that the Reserve Banks function
for certain international organizations using
internal systems other than payment processing
systems such as Fedwire will be posted throughout
the business day for purposes of measuring daylight
overdrafts.
36 Claim adjustments are debits and credits
associated with the Fedwire Securities Service’s
Automated Claim Adjustment Process (ACAP).
37 For a complete list of securities issuers,
including GSEs, please visit https://
www.frbservices.org/resources/financial-services/
securities/user-guide.html.
38 Electronic payments for credits on these
securities will post according to the posting rules
for the mechanism through which they are
processed, as outlined in this policy. However, the
majority of these payments are made by check and
will be posted according to the established check
posting rules as set forth in this policy.
VerDate Sep<11>2014
22:43 Dec 23, 2022
Jkt 259001
By order of the Board of Governors of the
Federal Reserve System, acting through the
Director of the Division of Reserve Bank
Operations and Payment Systems under
delegated authority.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2022–28095 Filed 12–23–22; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
[Document Identifier CMS–10510]
Agency Information Collection
Activities: Submission for OMB
Review; Comment Request
Centers for Medicare &
Medicaid Services, Health and Human
Services (HHS).
ACTION: Notice.
AGENCY:
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The public portions of the
applications listed below, as well as
other related filings required by the
Board, if any, are available for
immediate inspection at the Federal
Reserve Bank(s) indicated below and at
the offices of the Board of Governors.
This information may also be obtained
on an expedited basis, upon request, by
contacting the appropriate Federal
Reserve Bank and from the Board’s
Freedom of Information Office at
https://www.federalreserve.gov/foia/
request.htm. Interested persons may
express their views in writing on the
standards enumerated in the BHC Act
(12 U.S.C. 1842(c)).
Comments regarding each of these
applications must be received at the
Reserve Bank indicated or the offices of
the Board of Governors, Ann E.
Misback, Secretary of the Board, 20th
Street and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than January 26, 2023.
A. Federal Reserve Bank of Dallas
(Karen Smith, Director, Applications)
2200 North Pearl St., Dallas, Texas
75201:
1. Vista Bancshares, Inc., Dallas,
Texas; to acquire Charis Holdings, Inc.,
Dallas, Texas, and thereby, indirectly
acquire Charis Bank, Justin, Texas.
Board of Governors of the Federal Reserve
System.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022–28127 Filed 12–23–22; 8:45 am]
BILLING CODE P
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
The Centers for Medicare &
Medicaid Services (CMS) is announcing
an opportunity for the public to
comment on CMS’ intention to collect
information from the public. Under the
Paperwork Reduction Act of 1995
(PRA), federal agencies are required to
publish notice in the Federal Register
concerning each proposed collection of
information, including each proposed
extension or reinstatement of an existing
collection of information, and to allow
a second opportunity for public
comment on the notice. Interested
persons are invited to send comments
regarding the burden estimate or any
other aspect of this collection of
information, including the necessity and
utility of the proposed information
collection for the proper performance of
the agency’s functions, the accuracy of
the estimated burden, ways to enhance
the quality, utility, and clarity of the
information to be collected, and the use
of automated collection techniques or
other forms of information technology to
minimize the information collection
burden.
SUMMARY:
Comments on the collection(s) of
information must be received by the
OMB desk officer by January 26, 2023.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
To obtain copies of a supporting
statement and any related forms for the
proposed collection(s) summarized in
this notice, please access the CMS PRA
website by copying and pasting the
following web address into your web
browser: https://www.cms.gov/
Regulations-and-Guidance/Legislation/
PaperworkReductionActof1995/PRAListing.
DATES:
E:\FR\FM\27DEN1.SGM
27DEN1
]]>Agencies
[Federal Register Volume 87, Number 247 (Tuesday, December 27, 2022)]
[Notices]
[Pages 79331-79332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28095]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
[Docket No. OP-1796]
Modifications to the Federal Reserve Policy on Payment System
Risk To Accommodate Enhancement to the Automated Claim Adjustment
Process
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is revising part II of the Federal Reserve Policy on Payment System
Risk (PSR policy) to add a posting rule to facilitate the
implementation of enhancements to the Automated Claim Adjustment
Process (ACAP).
DATES: Applicability Date: January 30, 2023.
FOR FURTHER INFORMATION CONTACT: Jason A. Hinkle, Deputy Associate
Director (202-912-7805) or Benjamin J. Hobbs, Senior Financial
Institution Policy Analyst (202-872-7549), Division of Reserve Bank
Operations and Payment Systems. Cody Gaffney (202-452-2633), Senior
Attorney, Legal Division, Board of Governors of the Federal Reserve
System, 20th Street and Constitution Avenue, Washington, DC 20551. For
users of TTY-TRS, please call 711 from any telephone, anywhere in the
United States.
SUPPLEMENTARY INFORMATION:
I. Background
Part II of the PSR policy governs the provision of intraday credit
(also known as daylight overdrafts) in accounts at the Reserve
Banks.\1\ The PSR policy includes procedures, referred to as posting
rules, that are used to measure account balances. The posting rules
establish settlement times for debits and credits at Federal Reserve
accounts for different payment types.
---------------------------------------------------------------------------
\1\ The Board's PSR policy is available at: https://www.federalreserve.gov/paymentsystems/psr_about.htm.
---------------------------------------------------------------------------
The ACAP is a feature of the Fedwire[supreg] Securities Service
(``Fedwire Securities'' or ``Service'') that offers Fedwire Securities
participants (participants) the option to automate principal and
interest (P&I) tracking and claim adjustments related to transactions
between participants that settle over Fedwire Securities.\2\ The
Reserve Banks, in their capacity as fiscal agents for issuers of
securities issued over Fedwire Securities, make P&I payments to record-
date holders of the securities.\3\ For some types of transactions
between participants, such as repurchase agreements (repos), the
participant identified as the record-date holder by the Service may not
be entitled to the P&I payment pursuant to a separate agreement between
the transaction participants. The ACAP offers an automated way for the
record-date holder to transfer a P&I payment from its master account to
the master account of the designated participant.
---------------------------------------------------------------------------
\2\ An ACAP claim adjustment is a transfer of funds from one
Fedwire Securities participant to another participant over the
Service.
\3\ Issuers provide securities record dates and payment dates
information to the Fedwire Securities Service. As an operational
matter, a participant who is identified by the Service as the holder
of a security after the Service closes on the business day prior to
the security's record date is a record-date holder of the security.
A record-date holder of a security is entitled to payment of P&I on
that security, and the P&I payment is distributed to record-date
holders on the payment date associated with the record date
regardless of whether the participant still holds the security on
the payment date.
---------------------------------------------------------------------------
In January 2022 the Federal Reserve Banks announced phased
enhancements to the Service that will expand ACAP tracking to all
coupon-paying securities issued over Fedwire Securities, add securities
lending as a transaction type, and shift the timing of settling claim
adjustments.\4\ Currently, ACAP adjustments are settled at
approximately 4:30 p.m. ET via the National Settlement Service (NSS).
Most, but not all claim adjustments are associated with that day's P&I
payment which are generally made earlier in the day. The shift in the
timing of settling claim adjustments is designed to narrow the timing
gap between P&I payments and the associated claim adjustments. To
effect this shift in timing, the ACAP enhancements include a design
change to utilize new Fedwire Securities messages to settle claims,
which result in claim adjustments being effected promptly after the
associated P&I payments are made. This design change will be
implemented January 30, 2023.
---------------------------------------------------------------------------
\4\ See FRBServices.org, New Implementation Plan for the
Automated Claim Adjustment Process Enhancements (Jan. 18, 2022),
https://www.frbservices.org/news/communications/011822-fedwire-securities-participants-service-providers. For the most recent
information regarding the ACAP enhancements, see https://www.frbservices.org/resources/financial-services/securities/acap.
---------------------------------------------------------------------------
II. New Posting Rule To Accommodate the ACAP Enhancements
Currently, ACAP adjustments are not explicitly mentioned in the
posting rules of the PSR policy because ACAP adjustments are settled
using NSS, which has its own posting rule.\5\ The Board is adding a new
posting rule to part II of the PSR policy to reflect the fact that ACAP
adjustments will be made on a gross basis through Fedwire Securities
throughout the business day.
---------------------------------------------------------------------------
\5\ NSS entries settle throughout the business day as the
Reserve Banks process NSS files.
---------------------------------------------------------------------------
The ACAP enhancements and the new posting rule are not expected to
increase risk to the Reserve Banks or the payment system, even as the
ACAP expands to additional security and transaction claim types and as
claim adjustment volume increases. ACAP debit adjustments are small
compared to the participants' aggregate P&I credits on a given day and
analysis shows that they are not expected to significantly impact
participants' master account balances. In addition, all participants
will be notified of all claim adjustments before the adjustments are
processed.
III. Technical Changes to Text of the PSR Policy
In addition to the new posting rule to accommodate the ACAP
enhancements, the Board is modifying footnote 37 of the PSR policy by
adding a hyperlink to a frequently updated document containing a list
of securities issuers, including GSEs, rather than listing the
securities issuers directly in the footnote. This change is not
substantive in nature and reflects current practices that the Reserve
Banks use to administer the PSR policy.
IV. Federal Reserve Policy on Payment System Risk
[The following portion titled ``Federal Reserve Policy on Payment
System Risk'' will not publish in the Code of Federal Regulations.]
Federal Reserve Policy on Payment System Risk
Part II. Federal Reserve Intraday Credit Policies
Under ``Procedures for Measuring Daylight Overdrafts'', revise
``Opening balance (previous day's closing
[[Page 79332]]
balance)'', ``Post throughout business day'' as follows:
A. Daylight overdraft definition and measurement
* * * * *
Procedures for measuring daylight overdrafts \34\
---------------------------------------------------------------------------
\34\ This schedule of posting rules does not affect the
overdraft restrictions and overdraft measurement provisions for
nonbanks established by the Competitive Equality Banking Act of 1987
and the Board's Regulation Y (12 CFR 225.52).
---------------------------------------------------------------------------
Opening balance (previous business day's closing balance)
Post throughout the business day:
+/- FedNow funds transfers
+/- Fedwire funds transfers \35\
---------------------------------------------------------------------------
\35\ Funds transfers that the Reserve Banks function for certain
international organizations using internal systems other than
payment processing systems such as Fedwire will be posted throughout
the business day for purposes of measuring daylight overdrafts.
---------------------------------------------------------------------------
+/- Fedwire book-entry securities transfers
+/- Fedwire book-entry automated claim adjustments \36\
---------------------------------------------------------------------------
\36\ Claim adjustments are debits and credits associated with
the Fedwire Securities Service's Automated Claim Adjustment Process
(ACAP).
---------------------------------------------------------------------------
+/- National Settlement Service entries.
+ Fedwire book-entry interest and redemption payments on securities
that are not obligations of, or fully guaranteed as to principal and
interest by, the United States \37\
---------------------------------------------------------------------------
\37\ For a complete list of securities issuers, including GSEs,
please visit https://www.frbservices.org/resources/financial-services/securities/user-guide.html.
---------------------------------------------------------------------------
+ Electronic payments for matured coupons and definitive securities
that are not obligations of, or fully guaranteed as to principal and
interest by, the United States.\38\
---------------------------------------------------------------------------
\38\ Electronic payments for credits on these securities will
post according to the posting rules for the mechanism through which
they are processed, as outlined in this policy. However, the
majority of these payments are made by check and will be posted
according to the established check posting rules as set forth in
this policy.
---------------------------------------------------------------------------
The term ``interest and redemption payments'' refers to payments of
principal, interest, and redemption on securities maintained on the
Fedwire Securities Service.
The Reserve Banks will post these transactions, as directed by the
issuer, provided that the issuer's Federal Reserve account contains
funds equal to or in excess of the amount of the interest and
redemption payments to be made. In the normal course, if a Reserve Bank
does not receive funding from an issuer for the issuer's interest and
redemption payments by the established cut-off hour of 4:00 p.m.
eastern time on the Fedwire Securities Service, the issuer's payments
will not be processed on that day.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Director of the Division of Reserve Bank
Operations and Payment Systems under delegated authority.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2022-28095 Filed 12-23-22; 8:45 am]
BILLING CODE P
