The American Fintech Council (AFC) has expressed support for the Federal Reserve's proposal to extend the operating hours of Fedwire Funds Service and National Settlement Service (NSS). The AFC, representing fintech companies, innovative banks, and payment providers, submitted a comment letter to the Board of Governors of the Federal Reserve System (FRB) in response to their Request for Comment on this expansion.
Phil Goldfeder, Chief Executive Officer of AFC, stated, "As the global economy grows and the demand for seamless cross-border payments increases, American financial market infrastructure must continue developing to support responsible, impactful, and fast-paced innovation that mitigates risk and increases accessibility for all consumers. The FRB’s proposal is a welcome step in that continued evolution. AFC and its members strongly support and are ready to accommodate this change."
In their letter, AFC highlighted that extended operating hours would reduce counterparty risks by minimizing settlement delays caused by current limited hours. This change would allow financial institutions to manage liquidity and risk profiles more effectively, contributing to a resilient financial services industry.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC, wrote in the letter: "AFC believes it is crucial that the Federal Reserve expand the hours of operation of the Fedwire Funds Service and NSS to 22x7x365, with the further intent to move these systems to a 24x7x365 operating posture. We ultimately recognize the importance of moving to this operating posture as soon as possible in order to further innovation in the payments system, meet industry and consumer expectations, and ensure that the U.S. payments system remains a core aspect of the global payments ecosystem."
The AFC emphasized that its members are prepared for these changes which would facilitate advanced payment platforms' development within the U.S. financial system.
The full letter from AFC is available online.