This parameter determines whether federated authentication will be bypassed at the instance.
When fed_noauth is set to yes, authentication is set to server or server_encrypt, and federated is set to yes, then authentication at the instance is bypassed. It is assumed that authentication will happen at the data source. Exercise caution when fed_noauth is set to yes. Authentication is done at neither the client nor at DB2®. Any user who knows the SYSADM authentication name can assume SYSADM authority for the federated server.