Magazine article American Banker

Fed Develops New Protocols for Computer Hookups with Banks

Magazine article American Banker

Fed Develops New Protocols for Computer Hookups with Banks

Article excerpt

Fed Develops New Protocols for Computer Hookups with Banks

The Federal Reserve System has completed the development of two additional data communications protocols for connecting the central bank's computers to those of financial institutions.

The new protocols are part of an ongoing effort to upgrade the delivery of Federal Reserve operational services to member banks.

A protocol is a standard for communicating data and graphics between computer systems. It enables digital signals to represent letters, numbers, designs, and colors. A sender and receiver must use the same protocol to be compatible.

One of the new Fed protocols is designed for communications between large mainframe computers, while the other one applies to smaller mainframe systems, minicomputers, and personal computers. Recent enhancements have enabled institutions to use personal computers to link up with Fed District banks. An institution can have up to 15 terminals or computer links, or a combination of both, for the entry and receipt of funds-transfer messages.

The Fed issued proposed protocol specifications in early 1983 and, in response to industry reaction, said it subsequently made "substantial revisions' before coming up with the final versions.

"These protocols will meet the expressed needs of a wide size range of institutions since computers ranging from large-scale mainframes to personal computers will be supported,' the agency said. "The protocols provide improvements in message integrity, error handling, security, resource utilization, and ease of future expansion. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.