Changes in the Timing Distribution of Fedwire Funds Transfers
BibTeX
@MISC{_changesin,
author = {},
title = {Changes in the Timing Distribution of Fedwire Funds Transfers},
year = {}
}
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Abstract
service has long displayed a concentrated peak of activity in the late afternoon. • Sending large payments late in the day can heighten operational risk by increasing the potential magnitude of liquidity dislocation and risk if operational disruptions occur. • A study of the distribution of Fedwire payments finds that the peak of the timing distribution has become more concentrated, has shifted to later in the day, and has been divided into two peaks. • These trends are likely explained by a higher value of payments transferred, the settlement patterns of private settlement institutions, and increased industry concentration. • The study uncovers no specific evidence of heightened operational risk associated with late activity, but it points to a high level of interaction between Fedwire and private settlement institutions. T 1.
Keyphrases
timing distribution fedwire fund transfer operational risk private settlement institution high level settlement pattern late afternoon fedwire payment operational disruption industry concentration concentrated peak late activity liquidity dislocation specific evidence potential magnitude large payment
