UNITED STATES OF AMERICA


Currency: US dollar (USD)

RTGS: Fedwire (Federal Reserve’s Real Time Gross Settlement System)

Message format currently in use: Fedwire Funds Transfer Message

ISO migration planned? Timeline: The United States’ migration program for CHIPS and Fedwire, which originally targeted a phased approach (like-for-like ISO from Q1 2022, enhanced ISO from Q4 2023) has come under criticism from banks and the Payment Market Practices Group (PMPG) alike. PMPG and global transaction banks urged the Fed to review their strategy, and to implement a big-bang approach, as soon as possible after November 2021, that will enable enhanced ISO in order to avoid cross-border interoperability issues. In September 2019, the Fed and The Clearing House acknowledged these remarks, and had proposed[1] a new two phased approach with the first one providing a “container” in the Fedwire message to carry the excess data from customer transfer and bank transfer messages originated outside the United States. The second one would be a big-bang start date, not before end of 2023.

However, in June 2020, the Federal Reserve stated that it will not implement the interoperability phase 1 as initially planned and will most likely reassess it in favour of a single-day “big bang” implementation end of 2023.[2]

Governing body of the migration: Federal Reserve Bank

Coexistence vs big Bang approach: even if a coexistence period was initially considered, the Fedwire alongside with The Clearing House concurred a “big bang” implementation would be easier to handle from a software development and internal testing perspective.

Like-for-like vs Enhanced content: fully enhances ISO 20022 messages aligned with HVPS+ guidelines.

Timeline: until further notice


[1] https://www.frbservices.org/news/press-releases/092319-fedwire-funds-migration-iso20022-messages.html

[2] https://www.finextra.com/newsarticle/35940/federal-reserve-kicks-fedwires-iso-20022-can-down-the-road

[3] https://www.frbservices.org/resources/financial-services/wires/faq/iso-20022-implementation.html

[4] https://www.frbservices.org/assets/resources/financial-services/wires-phase-2-3-presentation.pdf