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Federal R eserve bank
OF DALLAS
WILLIAM H. WALLACE

DALLAS, TEXAS 7 5 2 2 2

f i r s t v ic e p r e s i d e n t

January 28, 1985
Circular 85-16

TO: The Chief Executive Officer of all
depository institutions in the
Eleventh Federal Reserve District
SUBJECT
Modifications to the dial-up portion of the RESPONSE network
DETAILS
The Federal Reserve Bank of Dallas plans several modifications to the
dial-up portion of the RESPONSE network to be initiated in 1985. These
modifications are part of a nationwide Federal Reserve automation program and
will be implemented in the four phases listed below. Benefits of the program
to financial institutions include increased throughput by higher data
communication transmission rates through better error recovery in data
communications (increased reliability), increased functions through new
applications software, and an increased level of data security through a new
access control system and the implementation of data encryption.
Phase one of the program involves exchanging modems currently used on
the system for ones offered through the AT&T Information System. Phase two
consists of implementing a new access control system and during phase three, a
higher level of security for the RESPONSE network will be implemented by
adding an encryption adapter to all personal computers. Finally, phase four
involves the introduction of new applications software for the network. A
technical summary of all phases of the program is attached. The Federal
Reserve Bank of Dallas will implement these modifications with the least
possible amount of cost and operational impact to financial institutions.
ATTACHMENTS
Attached is the technical summary of modifications to dial-up portion
of the RESPONSE network.
Sincerely yours,

For additional copies of any circular please contact the Public Affairs Department at (214) 651-6289. Banks and others are
encouraged to use the following incoming WATS numbers in contacting this Bank (800) 442-7140 (intrastate) and (800)
527-9200 (interstate).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

MODIFICATIONS TO THE DIAL-UP PORTION OF THE RESPONSE NETWORK
PHASE ONE
Definition:

Financial institutions must replace 212A modems (or
compatible) with an AT&T Information Systems (ATTIS)
2224-B00 or the 2224-BDO (which includes an Autocall
feature) modem.
The existing 212A modem is limited to 1,200 bits per
second and i s not compatible with the modifications
planned in phases three and four. The new ATTIS
2224-B00 or 2224-BDO modems operate in an asynchronous
mode at 300, 1,200 and 2,400 bits per second, and in a
synchronous mode at 1,200 and 2,400 bits per second.
Either of these new modems are compatible with the
current and future RESPONSE networks as well.
The Federal Reserve Bank has future plans to support
the 2224-BDO (Autocall feature) modem. This modem
also could be used in an autocall mode with programs
that financial institutions may use to access other
networks. The 2224-BDO is compatible with Federal
Reserve Bank manual dial procedure. It should be
noted that the purchase price for the 2224-BDO
Autocall modem is lower that the 2224-B00 modem.
However, the lease fees are lower for the 2224-B00.

Schedule:

Institutions should order the 2224-B00 or 2224-BDO
modem from AT&T Information Systems in February 1985.
The modem can be installed as soon as ATTIS can
provide it. The 212A will no longer be required after
the new modem is operational.

Cost:

The 2224-B00 -- without Autocall — can be purchased
from ATTIS for approximately $1,045 or can be leased
as follows:
24 months
48 months
Installation charge

$50 per month
$35 per month
$100 (one time charge)

The 2224-BDO -- with Autocall -- can be purchased from
ATTIS for approximately $822 or can be leased as
follows:
24 months
48 months
Installation charge

$60 per month
$45 per month
$100 (one time charge)

AT&T also will provide maintenance services.

- 3 -

To order:

The Fort Worth AT&T office will serve as the central
contact point and will send contract documents §nd
monitor the ordering process. Contact the AT&T
representative, Ms. Melissa Yoshioka at (817) 870-4497
to request information.
Technical Specifications:
2224-B00 Modem, full duplex, stand-alone modem
2224-BDO Modem, full duplex, stand-alone modem,
Autocall feature

More information

The Federal Reserve Bank contacts for phase one are
Richard Lopez (214) 698-4299 and Kent Goldin (214)
698-4306.

PHASE TWO
Definition:

Phase two consists of implementing the ACF2 Access Control
System that will replace the current CASE Access Control
System.

Schedule:

Training of financial institution personnel will begin
during the second quarter of 1985. It is anticipated
that training for existing RESPONSE network users will
be accomplished through printed materials and keying
the transactions in a test environment. It will not
be necessary to attend training sessions at the
Federal Reserve Bank of Dallas.

Cost:

There is no cost involved in phase two.

More information

The contacts for phase two are Joan Perry or Kristy
Moorman at (214) 698-4280.

PHASE THREE
Definition:

The Federal Reserve System plans to increase the level of
security in all of its networks during phase three. The
next level of security improvements for the RESPONSE
dial-up network will be to implement a data encryption
capability. This capability will prevent the authorized
monitoring of information sent and received through your
communications link. It will be necessary to add an
encryption adapter to all personal computers.
To accomplish this, all personal computers accessing
the RESPONSE network must be equipped with an
encryption adapter and a Synchronous Data Link Control
(SDLC) capability. The Federal Reserve Bank will make
available a combination SDLC and Encryption Adapter to

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those financial institutions that provide their own
equipment. Those institutions that purchased an IBM
SDLC Adapter (part number 1502090) in accordance with
previous Federal Reserve Bank instructions can trade
the purchased adapter in on the combination
SDLC/Encryption Adapter for full list price.
Schedule:

Encryption adapters will be installed in Federal
Reserve Bank leased personal computers beginning in
the first quarter of 1985. In that same time period,
the Fed also will begin to make available the
combination SDLC/Encryption Adapters to financial
institutions that provide their own equipment to
access the RESPONSE network. Implementation of the
data encryption capability cannot occur until a
substantial number of Encryption Adapters have been
installed.

Cost:

Costs will be as minimal as possible. Additional
information on this area will be provided at a later
date.

Prerequisite:

Institutions will need to complete implementation of
the AT&T Information Systems modem as outlined in
phase one.

More information

The contacts for phase three are Richard Lopez (214)
698-4299 and Kent Goldin (214) 698-4306.

PHASE FOUR
Definition:

Phase four consists of implementation of new applications
software.

Schedule:

Implementation will be phased-in around the middle of
1985.

Prerequisite:

Financial institutions providing their personal
computer to access the RESPONSE network must have
installed the SDLC/Encryption Adapter outlined in
phase three.

More information

The contacts for phase four are Richard Lopez (214)
698-4299 and Kent Goldin (214) 698-4306.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102