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FEDERAL RESERVE BANK OF DALLAS DALLAS, TEXAS 75222 Circular No. 81-150 July 22, 1981 FED STANDARD TIME TO ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: Effective August 3, 1981, the Federal Reserve System will implement a new procedure which has been designed to prohibit wire transfer of securities messages (CPD's) from being sent later than the deadline. The procedure will also assure that transactions originated prior to the deadline will be completed. This will remove some of the uncertainty that currently exists which will benefit all parties involved. This procedure, called "Fed Standard Time" (FST), will affect all banks which utilize the Federal Reserve's securities transfer system, including those which are on-line to the system and those which gain access through our Transfer of Securities Section. Under FST, securities transfer messages will be considered timely if all message editing and processing, including withdrawal of the book-entry securities for transfer, are completed by the originating Reserve Bank's computer system before the deadline, normally 2:30 p.m. Eastern Standard Time. In this case, the completion time (or FST) will be appended to the message (see example), and the message will be delivered to the receiving bank. Even if subsequent difficulties are encountered in the system which delay the message, the receiving bank must treat it as though it was received timely. As a result of this new procedure, originating banks will have to exercise greater care in meeting the securities transfer deadline. Timeliness of origination will no longer be based on the Input Message Acknowledgement (IMA) Time, labeled in the example, but on the Fed Standard Time. At least initially, on-line banks should enter their transfer request messages 10 to 15 minutes before the deadline to assure that the deadline will be met. Correspondingly, off-line banks should notify the Transfer of Securities Section a t least 20 minutes prior to the deadline to assure timely origination. Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - As experience is gained, on-line banks may be able to judge the length of time that full processing takes and, perhaps, originate closer to the deadline. Tests indicate that processing will normally take less than 3 minutes. The Federal Reserve Bank of Dallas will make no guarantees concerning message processing time, but every effort will be made to minimize it. As questions arise concerning implementation of the Fed Standard Time procedure, please contact the Federal Reserve office that services your bank. Questions should be directed to Don Curtis at this Bank, (214) 698-4218; David Sowell, El Paso, (512) 224-2141 Ext. 301; Dorothy Boaz, Houston, (713) 659-4433 Ext. 76; and Jerry Silvey, San Antonio, (915) 544-4730 Ext. 265. Sincerely yours, William H. Wallace First Vice President Example TRANSFER OF SECURITIES OUTGOING * * * DUE TO — 021000000 TYPE - 20 DUE FROM — 111900000 REF — 4339 $139,440.00 COUNTY NATL/TRUST M FRS NYC/MERRILL FST time BILL 12/24/81 DATE 07/17 ( 9127938E9) TIME $145,000.00 f - 1130* 10:28 07171128 K1S02 \ TERM 1S02 0019**07171028 IMA time OPER S9G K1S52 001 00098
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