When a money market instrument is traded, the clearing and settlement process establishes the change in ownership. Because the process involves both costs and risks, money market participants have developed means of making clearing and settlement more efficient and less risky

Each day, approximately $1.3 trillion changes hands by means of wholesale wire transfers. Of this total, about $638 billion is exchanged on Fedwire, the Federal Reserve wire transfer network, while just under $622 billion moves over the privately owned Clearing House Interbank Payment System...

During the last several years, the banking community has become increasingly aware of the risks faced by participants on electronic funds transfer (EFT) networks. Of particular concern have been the volume and incidence of "daylight overdrafts" on Fedwire and the risk of systemic failure due to...

In the United States, bankers and the Federal Reserve System have attempted to control risk on large-dollar wire transfer networks by means of quantitative limits. Net debit caps, as the limit.. are called, restrict the extent to which an institution can incur daylight overdrafts on Fedwire and...