Fedwire
Encyclopedia
Formally known as the Federal Reserve Wire Network, Fedwire is a Real Time Gross Settlement
Funds Transfer system operated by the Federal Reserve Banks that enables financial institutions to electronically transfer funds between its more than 9,289 participants (as of March 19, 2009). In conjunction with the privately held Clearing House Interbank Payments System
(CHIPS), Fedwire is the primary United States network for large-value or time-critical domestic and international payments, and it is designed to be highly resilient and redundant. The average daily value of transfers over the Fedwire Funds Service in 2007 was approximately $2.7 trillion, and the daily average number of payments was about 537,000. 2009 figures show a value of 631 trillion dollars in transfers originated in Fedwire.
Real Time Gross Settlement
Real time gross settlement systems are funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis. Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled...
Funds Transfer system operated by the Federal Reserve Banks that enables financial institutions to electronically transfer funds between its more than 9,289 participants (as of March 19, 2009). In conjunction with the privately held Clearing House Interbank Payments System
Clearing House Interbank Payments System
The Clearing House Interbank Payments System is the main privately held clearing house for large-value transactions in the United States, settling well over US$1 trillion a day in around 250,000 interbank payments. Together with the Fedwire Funds Service , CHIPS forms the primary U.S...
(CHIPS), Fedwire is the primary United States network for large-value or time-critical domestic and international payments, and it is designed to be highly resilient and redundant. The average daily value of transfers over the Fedwire Funds Service in 2007 was approximately $2.7 trillion, and the daily average number of payments was about 537,000. 2009 figures show a value of 631 trillion dollars in transfers originated in Fedwire.