Weekend Settlement: Potential Benefits, Costs, and Legal Issues.

摘要

You asked us to examine the potential implications of a recent proposal aimed at increasing payment system efficiency by instituting weekend settlement of financial transactions. Currently, settlement-the final step in the transfer of ownership involving the physical exchange of payment or securities- occurs only during the business week. Some retailers, however, generate approximately half of their weekly sales on weekends-when depository and other financial institutions generally are closed-receiving cash, checks, and electronic payments that are not credited to their accounts until at least the next business day. These funds currently earn no interest for the retailers. The grocery industry is one segment of the retail sector where this is particularly pronounced. Grocery industry representatives have suggested that extending settlement services over the weekend could benefit retailers, the payment system, and the economy as a whole. As agreed with your staff, we identified the (1) potential benefits of weekend settlement for retailers, consumers, and the economy as a whole; (2) potential costs and operational issues for payment service providers as well as lower-cost alternatives to weekend settlement; and (3) legal considerations related to instituting weekend settlement.