Fails Charge Trading Practices

SIFMA and the Treasury Market Practices Group have recommended trading practices to provide a standard procedure that market participants may elect to use to assess and pay “fails charges” for certain delivery failures in the market for certain Agency Debt and Agency Mortgage-Backed Securities and U.S. Treasury Securities. For these purposes, a “Delivery Failure” occurs when one party fails to deliver a U.S. Treasury security, Agency Debt or Agency MBS to another party by the date previously agreed by the parties.

Read Related Press Release: Treasury Market Practices Group Updates its Fails Charge Practice Recommendation, April 12, 2018