Government & Federal Agency Securities Division
Mission
To recommend and advocate best market practices, sound regulatory methodologies and strong market liquidity for significant dealer participants in the U.S. government and federal agency debt securities markets. The Division endeavors to promote these markets’ critical role in strengthening the U.S. economy, works to maintain strong secondary market activity for U.S. government securities and to maintain U.S. Treasury securities as the world’s benchmark issuance. The Division endeavors to support the U.S. Treasury Department in its mission to reduce its cost of funding over time, and as well works with the Government Sponsored Enterprises to assist them in meeting their defined missions by advocating efficient trading practices for the GSE and federal agency debt markets.
Latest Updates
SIFMA Plays Key Role in Solution That Will Reinstate Interbank Trading and Settlement of General Collateral Financing Repo Transactions - May 08, 2008
Report to the Secretary of Treasury from the Treasury Borrowing Advisory Committee of SIFMA - April 29, 2008
Global Master Repurchase Agreement (GMRA) legal opinion updates for 2008
Research: Primary Dealers Government Forecast - April 2008
SIFMA Market Close Recommendations for Showa Day, Children's Day, Greenery Day Observed Holidays in Japan and May Day Holiday in UK - April 21, 2008
SIFMA Commends The Federal Reserve’s Establishment of the Primary Dealer Credit Facility
March 19, 2008
Report To The Secretary Of The Treasury From TheTreasury Borrowing Advisory Committee Of TheSecurities Industry And Financial Markets Association - January 29, 2008
SIFMA Projects Fixed Income Issuance Decline of 15 Percent in 2008, to $3.4 Trillion Performance Forecast to Improve in Second Half - January 8, 2008
Market Practices
SIFMA released the final version of its revised guidelines for delivery of offering materials relating to GSE securities. The revisions move the guidelines to an “access = delivery” model by permitting electronic delivery of documentation for GSE securities. SIFMA recommends implementing the revised guidelines for when there is a delivery obligation of GSE offering materials on or after February 1, 2008. Please see a SIFMA Implementation Note for more information. As part of the publication of the guidelines, SIFMA is also publishing a revised Master Agreement to be used by market participants for the distribution of GSE securities that incorporates by reference the new guidelines and a form of a Negative Consent Amendment to be used for existing Master Agreements executed between market participants that references the new guidelines.
SIFMA Supports Efforts of Treasury Group to Develop Best Practices for Market
In a comment letter filed with the Treasury Market Practices Group SIFMA supports the Group’s efforts to encourage all market participants to incorporate best practices in their daily operations in the market for Treasury securities and offers comments on the Best Practices reflecting the views of its members.
Guiding Principles To Promote Integrity of Fixed-Income Research
The final version of the Guiding Principles to Promote the Integrity of Fixed-Income Research.
Practice Guidelines For Trading GSE European Callable Securities; Updated to Reflect Technical Improvements and Current Market Conventions
The Guidelines, Appendices A, B and C.
Summary Guide to Required Offering Materials for Newly Issued GSE Securities
A guide for the dealer's agreements or contractual obligations with the GSEs.
Market Guidelines Covering When Issued Trading in GSE Auctioned Securities
Practice guidelines designed to establish certain market conventions for "when issued" (WI) trading in coupon securities issued by government sponsored enterprises through a competitive bid auction process
Revised Government Securities Trading Practice Guidelines
The Primary Dealers Executive Committee of the Association has elected to revise the Government Securities Trading Securities Practice Guideline regarding when the cash government markets should go "subject." The revised guideline recommends that cash government markets should go "subject" only for discount rate changes, significant Fed Open Market Operations, and any other major event that is anticipated to have a significant effect on the government securities markets. The most notable change from the existing recommendation is that the cash market should stay "live" for Fed coupon passes and Fed bill passes.
Trading Practice Guidelines for Treasury's Inflation-Indexed Securities
Buy-In Procedures for Government Securities
Legal and Regulatory
Bond Market Association Urges US Treasury To Carefully Weigh Costs & Benefits of Creating Securities Lending Facility
In a comment letter filed with the U.S. Department of the Treasury, the Bond Market Association urges the department to carefully weigh the costs as well as the benefits of establishing a Securities Lending Facility.
Compendium To Assist Basel Committee
The Associations announce the publication of a compendium on the capital treatment of trading book items, such as derivatives and securities financing transactions.
Market Information and Statistics
Who/What is SIFMA’s Treasury Borrowing Advisory Committee (TBAC)?
Treasury Borrowing Advisory Committee Report to the Secretary
Primary Dealers Survey Forecasts Declining Interest Rates, Lower U.S. Treasury Issuance Based on Reduced Budget Deficit Forecast, April 25, 2007
The survey forecasts that the yield on the 10-year Treasury note, which was 4.65 percent at the time of the survey, will fall to 4.63 percent at the end of the second quarter and fall further to 4.60 percent by the end of the third quarter.
Standard Documentation
Treasury Borrowing Advisory Committee Report to the Secretary of the U.S. Treasury - July 31, 2007
Primary Dealers Survey Forecasts Declining Interest Rates, Lower U.S. Treasury Issuance Based on Reduced Budget Deficit Forecast, April 25, 2007
The survey forecasts that the yield on the 10-year Treasury note, which was 4.65 percent at the time of the survey, will fall to 4.63 percent at the end of the second quarter and fall further to 4.60 percent by the end of the third quarter.
Trade Assignment Agreement - 2003
The Association has published a Trade Assignment Agreement, which may be utilized to assign an outright securities transaction, or the back-leg of a repo transaction.
Cross-Product Master Agreement
Cross-Product Master Agreement, Cross-Affiliate Version 2 and 2000 Cross-Product Master Agreement. Agreements, Guidance Notes, Legal Memoranda and Opinions.
Legal Opinions in Relation to the Cross-Product Master Agreement
The CPMA is an "umbrella" agreement on the netting of close-out amounts determined in accordance with underlying master agreements, and amends those Agreements in certain limited respects.
OTC Options Agreements, 1989 and 2000 Versions - published 1-Aug-89
Master OTC Options Agreement, 2000 Version (pdf)
Guidance Notes (pdf)
Master Dealer Agreement: OTC Option Transactions--U.S. Treasury Securities, 1989 Version (pdf)
Debt Prime Brokerage Documents
In December 2000 the Association published an exposure draft of standardized documentation and guidance notes to facilitate debt prime brokerage transactions.
Revised Form of Consent/Instructions for 10-year Treasuries
A model form of a written instruction that can be used by dealers to authorize their clearing bank to provide certain transaction related information relating to fails in the Ten-Year Treasury Note to FICC.
