Fedwire is real-time gross settlement system operated by Federal Reserve Banks.
Participants can make final payment using balance held at FRB or intraday credit.
Fedwire uses proprietary message format that supports multiple type of payment.
ISO Benefits
Fed consulted on a proposal to adopt the ISO 20022 message format for Fedwire.
If approved, proposed action would replace current, proprietary, message format.
The ISO 20022 standard, includes a suite of messages, for the financial industry.
With messages for payments, securities, trade services, cards, foreign exchange.
Common data dictionary to support end-to-end payment message flow, including payment initiation by a client, interbank settlement, cash management for client.
Consistency
Benefits of ISO 20022 format included enhanced efficiency of both domestic and cross-border payment between service and other payment or messaging system.
Many foreign wire systems, including UK, have adopted ISO 20022, see #44072.
By richer set of payment data that could help banks meet evolving requirements.
Help monitor screen payment for sanctions and anti-money laundering purposes.
contain fields for three intermediary firms while current Fedwire format has one.
Effectiveness
The proposed migration to ISO 20022 would take place in three phases, in 2020-23.
On Jul. 5, 2018, Fed proposals issued in federal register, comment until Sep. 4, 2018.
Sep. 2019 Migration Delay
On Sep. 23, 2019, Fed announced will delayISO 20022 migration to assess industry request from Payment Market Practice, Phase 1 will not be implemented in Nov. 2020.
Oct. 4, 2021 Format Adoption
On Oct. 4, 2021, Fed announced the reserve banks will adopt the ISO 20022 message format for Fedwire Funds Service and proposed to adopt the format in a single day.
The board invited public comment on the proposal to adopt the new message format on a single day, instead of in three separate phases as previously proposed in 2018.
The targeted implementation date would be for Nov. 2023; comments on the proposal will be due 90 days after publication in the federal register, which is expected shortly.
Oct. 6, 2021 Fed Reg Format Adoption
On Oct. 6, 2021, Fed announced adoption of the ISO 20022 format, in federal register.
Comments on adoption of the new message format must be received by Jan. 4, 2022.
Oct. 2022 Fed Reg Adoption Date
On Oct. 24, 2022, Fed announced that the Reserve Banks will adopt the ISO 20022 message format for the Fedwire Funds Service on a single day, Mar. 10, 2025.
The board also announced revised testing strategy, backout strategy, other details concerning implementation of ISO 20022 message format for Fedwire Funds Service.
In Mar. 2024, FedWire issued notice to customers re 2025 migration, see #204962.
In Dec. 2024, FedWire created resource guide re ISO 20022 migration, see #235859.
Feb. 13, 2025 Fed Rescheduled Implementation
On Feb. 13, 2025, Fed reported that Federal Reserve Financial Services (FRFS) rescheduled implementation of Fedwire Funds Service ISO 20022 to Jul. 14, 2025.
Fedwire Funds Service will remain on the Fedwire Application Interface Manual (FAIM) 3.0.7 format) until Jul. 14 and will make its final decision no later than Jun. 27, 2025.
Feb. 26, 2025 Editorial Update
On Feb. 26, 2025, Reg-Track change the Rule Type from Proposed to Final.
