Federal Reserve Fedwire

Fed Wire

An electronic system allowing the quick transfer of funds and securities between banks. The fed wire exists to settle large transactions between banks so that they can continue to extend credit to each other and to customers. It is operated by the Federal Reserve and is more formally known as the Federal Reserve Wire Network. See also: Real-time gross settlement system (RTGSS).

Federal Reserve Fedwire.

Fedwire is an electronic transfer system owned and operated by the 12 Federal Reserve Banks that enables participants to move money from an account they maintain with the Federal Reserve to the account of another participant in real time during operating hours.

The payments are final and irrevocable, either when the amount is credited to the recipient's account or when the payment order is sent to the participant, whichever occurs first.

Fedwire, which operates on the Federal Reserve's national communications network (FEDNET), connects the Federal Reserve Banks, their branches, the US Department of the Treasury, banks that are members of the Federal Reserve and those that aren't, and branches or agencies of banks based abroad.

The system is used both to handle internal banking business, such as shifting balances to reflect money transferred by check, and to facilitate commercial transactions between bank clients.

References in periodicals archive ?
The Federal Reserve Fedwire system is an electronic funds and securities transfer system.
A guru of network security, Isaacson was responsible for the security design and operation of the Federal Reserve FEDWIRE security system.

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