Federal Reserve Banks Announce Rollout of ISO 20022 Settlement Standard.
The Federal Reserve Banks have announced plans to complete their migration to the ISO 20022 standard for their real-time gross settlement system--the Fedwire Funds Service--by the end of 2023.
According to a Fedwire press release, adopting the ISO 20022 standard for payments clearing and settlement messages, already in effect in many other countries, supports the Federal Reserve's strategy to enhance the efficiency of both domestic and cross-border payments.
Implementation of the ISO 20022 standard will be completed in three phases, beginning in November 2020 and ending in late 2023. 'The Federal Reserve collaborated with customers and the industry at large to define how the ISO 20022 message format would be used to improve the end-to-end efficiency of payments settled through the Fedwire Funds Service, as well as to enhance the information content carried in Fedwire messages," said Richard Dzina, executive vice president at the Federal Reserve Bank of New York and product director for the Federal Reserve Banks' wholesale financial services.
For more on ISO 20022, see these white papers on the topic: U.S. Adoption of ISO 20022 (http://bit.ly/2yKYITM) and Understanding ISO 20022: A Resource Guide for Financial Institutions, Corporations and the Public (http://bit.ly/2ho4uTY).