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.
IN THE SPOTLIGHT
Treasury August 2009 Quarterly Refunding Statement - August 5, 2009
In its press release, Treasury highlights private sector initiatives to improve the functioning of Treasury repurchase markets:
“Chronic settlement fails in the Treasury repurchase market in 2008 led the Treasury Market Practices Group (TMPG), working alongside members of the Securities Industry and Financial Markets Association (SIFMA) and the Depository Trust and Clearing Corporation (DTCC) to issue guidelines aimed at minimizing episodes of chronic fails.
“On May 1, 2009 market participants adopted and implemented the TMPG's Fails Charge recommendations. In response to these measures, settlement fails in the Treasury market have declined significantly. Treasury commends the efforts by the TMPG and other private sector groups to craft these changes as they have served to enhance the liquidity of the Treasury market.
“In addition, to ensure the orderly implementation of the Fails Charge, the IRS announced on July 28, 2009 that it will not challenge a position taken by a taxpayer or a withholding agent that a Fails Charge paid on or before December 31, 2010 is not subject to U.S. gross-basis taxation unless contrary guidance has been issued effective before that date.”
New Research and Statistics pages: Federal Facilities and Settlement Fails Data
Research: Government Forecast - January 2009
Buy-In Procedures for Government Securities - Nov-94
Buy-In Procedures for Government Securities (pdf)
- Read Comment Letter to Treasury Re: Buy-ins of Customer Sell-Order Fails in Government Securities - January 18, 2005
LATEST UPDATES
SIFMA’s Statement on Repo Infrastructure Reform Task Force Progress Report
December 22, 2009
TMPG and SIFMA Announce Updated Closing Time Practice Recommendations for Delivering U.S. Treasury Securities
April 28, 2009
SIFMA Government Survey Projects Total Net Issuance Increasing in Q4 08 Compared to Both Q3 08 and Q4 07
October 31, 2008
SIFMA Welcomes US-led Global Summit on Economic Turmoil
October 22, 2008
SIFMA Testifies In Favor of Stability Regulator - October 21, 2008
Treasury Plan - SIFMA Supports Multi-pronged Strategy - October 14, 2008
Treasury's Recapitalization Plan the Right Move, Says SIFMA - October 10, 2008
SIFMA Commends The Federal Reserve Bank’s Timely Establishment of the Commercial Paper Funding Facility - October 07, 2008
EESA Passes House - October 03, 2008
SIFMA Releases Treasury Securities Settlement Fails Best Practices to Enhance Market Participant’s Abilities to Set Proactive Firm Policies and Strategies -
October 03, 2008
View Fails Best Practices document here (pdf)
SIFMA Primary Dealers Survey Forecasts Higher Net Total Treasury Issuance Q3 08
July 23, 2008
Global Master Repurchase Agreement (GMRA) legal opinion updates for 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 29, 2008
Report to the Secretary of Treasury from the Treasury Borrowing Advisory Committee of SIFMA - April 29, 2008
Report To The Secretary Of The Treasury From Treasury Borrowing Advisory Committee Of the Securities Industry And Financial Markets Association - January 29, 2008
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.
is in the process of being updated. For more information please contact