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| Currency Settlement System | |
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| United States Dollars |
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| Fedwire Funds Service (Fedwire)is provided by Federal Reserve Banks of United States. It is real time gross settlement system in which more than 9,500 on-line or off-line participants initiate funds transfers that are immediate, final, and irrevocable when processed. Participants that maintain a reserve or clearing account with a Federal Reserve Bank may use Fedwire to send payment to, or receive payments from, other account holders directly. It is normally used for large-value, time-critical payments, such as payments for settlement of interbank purchases and sales of federal funds; the purchase, sales, and financing of securities transactions; the disbursement or repayment of loans; and the settlement of real estate transactions. |  |
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| On-line participants send instructions through either a mainframe or PC connection to Fedwire, and no manual processing by the Federal Reserve Banks is necessary. Off-line participants give instructions to Federal Reserve Banks by telephone. Once the telephone request is authenticated, the Reserve Bank enters the transfer instructions into the Fedwire system for execution. |
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| The Fedwire Funds Service operates from 12:00 a.m. To 6:30 p.m. eastern time, Monday through Friday. The deadline for initiating third-party transfers is 6:00 p.m. eastern time. |
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| The Clearing House Inter-bank Payment System (CHIPS) It is a private-sector, privately-operated, real time, final payment system. CHIPS is the industry standard for clearing U.S. Dollar payments for most of the largest financial institutions around the globe. |
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| CHIPS handles 95% of all U.S. Dollar payments moving among countries worldwide, it clears and settles 250,000 transactions on an average day, the average total value of $1.2 trillion daily. |
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