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Fed Issues New and Revised Operating Circulars

Saturday, January 1, 2000

The Fed has issued a new Operating Circular 12, "Multilateral Settlement," and revised Operating Circulars 5, 8 and 9. These circulars constitute legal agreements under which Reserve Banks offer payments services to their customers and are uniform among Fed districts.

Operating Circular 12, adopted March 29, 1999, governs the Fed's national settlement service, which provides same-day finality and an online mechanism for submitting settlement information. The circular does not replace agreements governing existing settlement arrangements until participants opt to move to the new service and agree to the terms of the circular.

Operating Circular 5, "Electronic Access," has been revised to address Internet access to Reserve Bank services and the use of encryption technology. The implementation of the Treasury Investment Program (TIP) and the Paper Tax System (PATAX) prompted significant changes to Operating Circular 8, "Collateral," and Operating Circular 9, "Federal Tax Payments and Treasury Tax & Loan Depositories."

The official, current versions of all 12 circulars are available for users to read, download and print under the "Industry Topics" section of the Fed's Financial Services web site, For information about particular circulars, contact one of your local Business Development representatives. To request a paper copy, call (314) 444-8320.