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).
A high-speed communications system for transferring funds and ownership of book-entry securities between banks. The fed wire is used to move bank reserves and to make credit available without delay.