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Federal Reserve Bank
of Dallas

l l★K

HELEN E. HOLCOMB
DALLAS, TEXAS
75265-5906

FIRST VICE PRESIDENT AND
CHIEF OPERATING OFFICER

August 16, 2002

Notice 02-43

TO: The Chief Operating Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District
SUBJECT
New Deposit Option Available
to Financial Institutions
DETAILS
Effective September 15, 2002, the Federal Reserve Bank of Dallas will offer an
explicit float pricing option on Other Fed and Mixed forward and return cash letter deposits.
Financial institutions subscribing to Federal Reserve Bank Other Fed and Mixed products will
have the option to choose explicit float pricing or continue receiving calculated funds availability.
Explicit float pricing offers financial institutions many benefits, including:
•
•
•

100 percent availability of deposit;
simplified daily accounting with a single entry for the entire deposit; and
application to both forward and return Mixed items and Other Fed items.

Financial institutions participating in the explicit float pricing option will be billed
monthly for the float charge—reduced by 10 percent—at the Federal Reserve Bank of New York
federal funds rate.
To ensure a smooth transition to this pricing option, institutions that choose explicit
float will be phased in gradually throughout the remainder of 2002. Implementations will begin
approximately two weeks after the Federal Reserve Bank receives the request forms for explicit
pricing, which will take place the first and third Monday of each month.

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

-2MORE INFORMATION
For more information on explicit float pricing, please contact one of the representatives
listed below.
Dallas

Jim McCammon
Susan Vice
El Paso
Lupe Edens
Houston
Michele Hitchings
Kathy Waggoner
San Antonio Rick Flansburg

(214) 922-5491
(214) 922-5430
(915) 521-8248
(713) 652-9141
(713) 652-9146
(210) 978-1661

Paper copies of this notice or previous Federal Reserve Bank notices can be printed
from our web site at http://www.dallasfed.org/banking/notices/index.html.
Sincerely,

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