Financial Update (April-June 1997)
National Book-Entry System to Be
Implemented in October
he Federal Reserve's new National Book-Entry System (NBES) for securities safekeeping and transfers is scheduled for implementation in the Sixth Federal Reserve District on Oct. 18, 1997. This centralized software application has been successfully implemented in several Federal Reserve Banks and will be implemented in all other districts except New York during 1997. New York plans to convert to NBES in February 1998.
Consolidation of Sixth District Book-Entry Operation to Atlanta
With the conversion to NBES, the Sixth District's book-entry securities processing function will also be consolidated in Atlanta on Oct. 18. Through centralized software applications such as NBES, similar business functions are being consolidated throughout the Federal Reserve when feasible to provide more standardized products and services. Given the increasingly interrelated functions of the Federal Reserve's book-entry and funds services and the linking of these services at the system level, the Sixth District will consolidate its book-entry and funds operations in Atlanta. The existing district book-entry operation in Nashville that utilizes the SHARE application will remain in place until the Oct. 18 NBES conversion in Atlanta.
NBES Implementation Guide
During April, all financial institutions with book-entry securities holdings or activity received a comprehensive informational package containing the NBES Implementation Guide. This guide provides details regarding the key changes of the new system as well as information on accounting, billing, reconcilement and conversion issues. Report examples are also included in the guide.
Fedline/Computer Interface Testing
Fedline users will receive new software for the NBES application. Computer interface protocol specifications (CIPS) were provided to institutions and vendors with a computer interface link to the securities system. Computer interface institutions are required to complete certification testing. Representatives from the Sixth District's NBES implementation team are currently coordinating testing with Fedline and computer interface users.
NBES seminars will be combined with training on the new Fedline book-entry application during July and August. This classroom-style training will cover all business-area aspects of NBES, including the new account structure, principal and interest payments, transfers by wire, reconciliation, reports, billing and accounting as well as the new Fedline application.
The Sixth Federal Reserve District will continue to provide customer service during the transition to NBES. Federal Reserve Bank book-entry securities representatives in Nashville will remain the primary contacts for service, electronic access support, off-line services and answers to day-to-day questions until the Oct. 18 conversion to NBES.
For questions and service related to the current SHARE book-entry system, call a book-entry securities representative at 1-800-253-6879 or Jerry Weathers at (615) 251-7255.
For answers to questions about NBES, call one of the following NBES implementation team representatives: Trev Brown at (615) 251-7222, Beth Cooper at (615) 251-7277, Mary McCormick at (404) 498-8034, or Nesta Reckord-Yarde at (404) 498-8339.