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Fed er a l R e s e r v e Bank of N ew Yo r k NEW YO R K, N.Y. 1 0 0 4 - 5 AREA T h o m a s CODE 212 7 9 1 -6 0 8 5 C . S l o a n e S e n io r Vice P r e s id e n t and S e n io r A d v is e r P iT u K A O c t o b e r 30, 1980 To O f f i c e r s in C h a r g e o f U.S. B r a n c h e s a n d A g e n c i e s of F o r e i g n B a n k s in t he S e c o n d F e d e r a l R e s e r v e D i s t r i c t , and O t h e r s Co n c e r n e d : As y o u ma y kno w , the I n t e r n a t i o n a l B a n k i n g A c t p r o v i d e s f o r e i g n b r a n c h e s a n a a g e n c i e s w i t h a c c e s s to F e d e r a l R e s e r v e s e r v i c e s on N o v e m b e r 13, 1 9 8 0 w h e n t h e y b e g i n to m a i n t a i n r e s e r v e s w i t h us. These include: w i r e t r a n s f e r of f u n d s an d s e c u r i t i e s , net s e t t l e m e n t , c h e c k c o l l e c t i o n , a u t o m a t e d c l e a r i n g h o u s e (ACH) , c u r r e n c y a nd c o i n t r a n s p o r t a t i o n , s e c u r i t i e s ( p u r c h a s e a n d sal e, s a f e k e e p i n g an d t r a n s f e r ) , a n d n o n c a s h c o l l e c t i o n s e r v i c e s . Access to t h i s B a n k ' s d i s c o u n t w i n d o w for b o r r o w i n g s is a l r e a d y a v a i l a b l e u n d e r F e d e r a l R e s e r v e R e g u l a t i o n A, as r e v i s e d e f f e c t i v e S e p t e m b e r 1, 198 0. S e r v i c e s , o t h e r t h a n d i s c o u n t w i n d o w b o r r o w i n g s , w i l l be a v a i l a b l e i n i t i a l l y fre e of c h a r g e . H o w e v e r , b e g i n n i n g in J a n u a r y 198 1, t h i s B a n k e x p e c t s to b e g i n p h a s i n g in c h a r g i n g on a per i t e m b a s i s for e a c h s e r v i c e c l a s s , u n d e r our fee s c h e d u l e . F r o m p r e l i m i n a r y s u r v e y r e s p o n s e s we h a v e r e c e i v e d , ou r w i r e t r a n s f e r o f f u n d s a n d s e c u r i t i e s s e r v i c e s are of p a r t i c u l a r i n t e r e s t to b r a n c h e s an d a g e n c i e s of f o r e i g n b a n k s in t h i s D i s t r i c t . T h e f u n d s t r a n s f e r s e r v i c e e n a D l e s i n s t i t u t i o n s to t r a n s f e r i m m e d i a t e l y a v a i l a o l e b a l a n c e s h e l d at t h i s B a n k d i r e c t l y to o t h e r d e p o s i t o r y i n s t i t u t i o n s in t h i s c o u n t r y t h a t m a i n t a i n f u n d s a c c o u n t s at R e s e r v e B a n k s . In a s i m i l a r m a n n e r , th e s e c u r i t i e s t r a n s f e r s e r v i c e e n a b l e s i n s t i t u t i o n s to t r a n s f e r o o o k - e n t r y U.S. G o v e r n m e n t a n d e l i g i b l e G o v e r n m e n t a g e n c y s e c u r i t i e s d i r e c t l y to other d e p o s i t o r y i n s t i t u t i o n s that m a i n t a i n s e c u r i t i e s a c c o u n t s at R e s e r v e B a n k s . T he p u r p o s e of th i s l e t t e r is to i n f o r m you of the p o l i c i e s a n d p r o c e d u r e s a s s o c i a t e d w i t h ou r p r o v i s i o n of t h e s e tw o s e r v i c e s , a n a to d e t e r m i n e , t h r o u g h th e e n c l o s e d q u e s t i o n n a i r e , th e n u m b e r of i n s t i t u t i o n s t h a t m ay r e q u e s t a c c e s s to t h e s e s e r v i c e s . Addition all y, it is i m p o r t a n t for us to k n o w t he p r e s e n t v o l u m e s of f u n d s a n d s e c u r i t i e s t r a n s f e r s p r o c e s s e d by i n s t i t u t i o n s p l a n n i n g to u se ou r s e r v i c e s . FEDERAL. R E SE R V E B A N K O F N E W YO R K . 2 'With r e s p e c t to f u n d s t r a n s f e r s e r v i c e s , we e x p e c t to a n n o u n c e in th e n e a r f u t u r e p o l i c i e s for m o n i t o r i n g the a c c o u n t s on o u r o o o k s of al l b r a n c h e s a n d a g e n c i e s of f o r e i g n b a n k s to c o n tr o l w h a t a re c o m m o n l y r e f e r r e d to as " d a y l i g h t o v e r d r a f t s . " For an i n i t i a l p e r i o d , b e g i n n i n g on N o v e m b e r 13, 198 0, we p r o p o s e to e x t e n d to b r a n c h e s a n d a g e n c i e s of f o r e i g n b a n k s th e s a m e m o n i t o r ing a n a c o n t r o l p o l i c i e s n o w in e f f e c t for S e c o n d D i s t r i c t E d g e corporations. U n d e r th i s p o l i c y , a f u n d s t r a n s f e r c a n n o t be s e n t u n l e s s y o u r i n s t i t u t i o n has c o l l e c t e d f u n d s in its a c c o u n t s u f f i c i e n t to c o v e r th e f u n d s t r a n s f e r at t h e t i m e it is i n i t i a t e d . T h e i m p l i c a t i o n s of t h i s m o n i t o r i n g p o l i c y s h o u l d be c a r e f u l l y r e v i e w e d by e a c h i n s t i t u t i o n p r i o r to r e q u e s t i n g a c c e s s to ou r funds t r a n s f e r ser vices. i n s t i t u t i o n s h a v e a c c e s s to our f u n d s a n d s e c u r i t i e s t r a n s f e r s e r v i c e s in two way s . La r g e r vol ume i n s t i t u t i o n s have o n - l i n e a c c e s s to th e F e d w i r e s y s t e m v i a c o m m u n i c a t i o n s t e r m i n a l s or c o m p u t e r - t o - c o m p u t e r c o n n e c t i o n s . I n s t itu tions with smaller v o l u m e h a v e o f f - l i n e a c c e s s to t h e s e s e r v i c e s and t e l e p h o n e t h e i r r e q u e s t s for t r a n s f e r s to our F u n d s T r a n s f e r a n d S e c u r i t i e s Clearance Departments, respectively. O v e r the n e x t fi ve or six m o n t h s o n l y a l i m i t e d n u m b e r of t e r m i n a l s t h a t c a n be u s e d for o n - l i n e a c c e s s w i l l be a v a i l a b l e for installation. A l t h o u g h s u f f i c i e n t q u a n t i t i e s of ou r n e w D A R T t e r m i n a l s s h o u l d be a v a i l a b l e by l a t e in th e f i r s t q u a r t e r of 1981, it w i l l be n e c e s s a r y to a l l o c a t e the e x i s t i n g s u p p l y of t e r m i n a l s to t h o s e i n s t i t u t i o n s w i t h th e g r e a t e s t v o l u m e . Our p r e l i m i n a r y e s t i m a t e s i n d i c a t e t h a t an i n s t i t u t i o n w i l l h a v e to o r i g i n a t e at l e a s t 50 to 100 f u n d s a n d s e c u r i t i e s t r a n s f e r s d a i l y to be c o n s i d e r e d fdr a t e r m i n a l i n s t a l l a t i d n . I n s t i t u t i a n s t h a t da n ot r e c e i v e a t e r m i n a l w i l l de a b l e to o b t a i n a c c e s s to o ur f u n d s and s e c u r i t i e s t r a n s f e r s e r v i c e s by t e l e p h o n e . To a s s i s t us in a l l o c a t i n g the l i m i t e d n u m b e r of a v a i l a b l e t e r m i n a l s , a n d to p r o v i d e us w i t h e s t i m a t e s of o f f - l i n e f u n d s and s e c u r i t i e s t r a n s f e r v o l u m e , we ask t h a t y o u c o m p l e t e the e n c l o s e d q u e s t i o n n a i r e a n d r e t u r n it to o ur F u n d s T r a n s f e r D e p a r t m e n t by N o v e m o e r 5, 19 8 0 . S i n c e t h e r e is a t h r e e - m o n t h l e a d t i m e for the i n s t a l l a t i o n of a t e r m i n a l , it is i m p o r t a n t t h a t yo u p r o v i d e us w i t h t h i s i n f o r m a t i o n as s o o n as p o s s i b l e . An y a d d i t i o n a l q u e s t i o n s c o n c e r n i n g ou r f u n d s a n d s e c u r i t i e s t r a n s f e r s e r v i c e s s h o u l d be d i r e c t e d to H e n r y F. W i e n e r , M a n a g e r , F u n d s T r a n s f e r D e p a r t m e n t ( Te le. No. 2 1 2 - 7 9 1 - 5 0 7 9 ) an a J o r g e A. B r a t h w a i t e , A s s i s t a n t V i c e P r e s i d e n t , G o v e r n m e n t B o n d and S a f e k e e p i n g ( S a f e k e e p i n g and S e c u r i t i e s C l e a r a n c e D e p a r t m e n t s ) (T ele. No. 2 1 2 - 7 9 1 - 5 8 1 8 ) , r e s p e c t i v e l y . Questions concerning a c c o u n t m o n i t o r i n g s h o u l d be d i r e c t e d to J o h n J. S t r i c k , M a n a g e r , msKaammmmm O FEDER AL RESERVE BA NK O F N E W YORK. 3 A c c o u n t i n g D e p a r t m e n t (Tele . No. 2 1 2 - 7 9 1 - 5 2 2 8 ) . Q u e s t i o n s on a c c e s s and u s e of o t h e r F e d e r a l R e s e r v e s e r v i c e s s h o u l d be d i r e c t e d to the f o l l o w i n g i n d i v i d u a l s at t h i s Bank: C h eck C o l l e c t i on J a n e t L. W y n n Manager Check Pro cessing Department Automated Clearing H o u s e (ACH) S e r v i c e s C a r l W. T u r n i p s e e a Electronic Payments Officer C u r r e n c y a n d C o in J o s e p h F. D o n n e l l y Manager Cash Services Department 212-791-5049 S a f e k e e p i n g and N o n c a s h Collection A n g u s J. K e n n e d y Manager Safekeeping Department 212-791-7726 Net S e t t l e m e n t H e n r y F. W i e n e r Manager Funds Transfer Department 212-791-5079 Discount E u g e n e P. E m o n d Manager C r e d i t and D i s c o u n t Department 212-791-6146 J a n e L. D e t r a Bank Rel atio ns Officer 212-791-6070 General Window Information 212-791-532 212-791-6838 Sincerely , Thomas C. Sloane Enclosure f FEDERAL RESERVE BANK OF NEW YORK FUNDS AND SECURITIES TRANSFER SERVICE QUESTIONNAIRE Name of Institution Address Nine-Digit ABA Number Name and Telephone Number of Individual to Contact Concern ing this Questionnaire The purpose of this questionnaire is to determine which institutions will request direct access to Federal Reserve funds and securities transfer services and to obtain information about the transaction volume of those institutions that will request direct access. Please indicate below whether or not your institu tion will request direct access to these services. If your institution indicates yes for either or both of these services, please also indicate the approximate date it will request that this direct access become effective. This questionnaire should be returned by November 5, 1980 to the individual indicated on page 2 regardless of whether or not your institution will request direct access to these services. Funds Transfer No Yes Des ired Effective Date Securities Transfer No Yes Des ired Effecti ve Date Please complete the following four questions if you answered yes for either service above: 1. Will your institution request an on-line terminal for access to either or both of the above services? Yes No 2. What is the current average daily volume of your funds and securities transfer transactions being processed via Fedwire by your correspondent(s)? Funds Transfers Originated ________ Received ________ Securities Transfers Originated ________ Received ________ 2 3. Does your institution currently effect funds transfers by means other than through correspondent(s) via Fedwire? If yes, please indicate the method(s) used and the average daily transaction volume. Yes No Comments: 4. What is the average daily number of funds and/or securities transfer transactions that your institution expects to originate and receive when it begins to use these services di rectly? Funds Transfers Originated ________ Received ________ Securities Transfers Originated ________ Received ________ Please return this questionnaire by November 5, 1980 to: Henry F. Wiener, Manager Funds Transfer Department Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045
@FedFRASER