November 22, 2006

Extension of public comment period on a consultation paper pertaining to intraday liquidity management and the Board's Payment System Risk Policy

For immediate release

The Federal Reserve Board on Wednesday announced an extension of the comment period on a consultation paper that is intended to help the Board obtain broader information on intraday liquidity management issues and to lay the groundwork for discussions about the long-term evolution of its Payment System Risk (PSR) Policy. The comment period will be extended for ninety days to March 15, 2007. The extension is granted to give the public additional time to comment on the consultation paper.

The consultation paper seeks information from the financial industry and other interested parties on their experience in managing intraday liquidity, credit, and operational risks associated with Fedwire funds transfers and associated transactions, especially late-day transfers. In particular, the paper requests views on potential changes in market practices, depository institution and Federal Reserve Bank operations, and the Board’s PSR Policy that could reduce one or more of these risks, while maintaining or improving the efficiency of the payments system over the long run.

The Board's Federal Register notice is attached.

Last Update: November 22, 2006