Changes to the Security Procedures for Fedwire® and Net Settlement - Amendments to Operating Circulars Nos. 6 & 12
June 5, 2001
Circular No. 11352

To All Depository Institutions in the Second Federal Reserve District:

Over the next several months the Federal Reserve Bank of New York expects to be able to offer customers a new on-line method of accessing Reserve Bank services - the Fedline® for Windows NT® operating system. In anticipation of this new Fedline access product, Appendix A of Operating Circular No. 6 (Funds Transfers Through Fedwire®) has been amended. Specifically, Appendix A, which sets out the security procedures for accessing the Fedwire funds transfer network, has been revised to include references to the specific security documentation that is associated with the new Fedline product and incorporated into the Fedwire security procedures. The appendix also includes a specific reference to the fact that physical security is an important component of our security procedures. Up until now, discussions of physical security requirements were solely in the security documentation other than the operating circular.

The Federal Reserve Bank of New York is also amending the security procedures and related agreement in Operating Circular No. 12 (Multilateral Settlement). These security procedures, which are modeled on the security procedures in Operating Circular No. 6, reflect the fact that the Reserve Banks offer multiple on-line security procedures. The need for this type of flexibility is becoming increasingly important given the rapid advancements in electronic access methods and electronic security. In addition to the new Fedline for Windows NT product, the Reserve Banks anticipate that, in the future, the on-line security procedures may include an Internet access method.

The amendments (pdf - 16kb) are effective as of May 11, 2001. Operating Circulars Nos. 6 and 12, as posted on the Financial Services web site, reflect these amendments. Questions on this matter may be directed, at this Bank, to Raleigh Tozer, Senior Vice President.

® Fedline and Fedwire are registered trademarks of the Federal Reserve Banks
® Windows NT is a registered trademark of the Microsoft Corporation