STATUTES & REGULATIONS

Government Securities Act (GSA) Regulations

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Large Position Reporting

  • Treasury Calls for Large Position Reports:
    On February 27, 2012, Treasury issued a call for large position reports from any entity that controlled a position as of the close of business on February 21, 2012 of $2 billion or more in the 1-1/4% Treasury Notes of January 2019. The reports are to be received by noon on March 2, 2012 at the Federal Reserve Bank of New York. View the Press Release.
  • Large Position Reporting Rules:
    Treasury's large position rules (17 CFR Part 420) establish reporting and recordkeeping requirements for entities that control large positions in certain Treasury securities. The rules put in place an on-demand reporting system which, in response to a notice by Treasury requesting large position information, requires large position reports to be filed by entities that control a position in a particular Treasury security (or securities) equaling or exceeding the specified large position threshold.

    The rules are intended to improve the information available to Treasury and other regulators regarding concentrations of control and to ensure that regulators have the tools necessary to monitor the Treasury securities market. Large positions, in and of themselves, are not inherently harmful, and there is no presumption of manipulative or illegal intent on the part of the controlling entity merely because it is required to submit a large position report.
    • Treasury's large position rules were issued in proposed form on December 18, 1995
      (60 FR 65214)      .
    • Treasury's large position rules were issued in final form on September 12, 1996
      (61 FR 48338)       and became effective March 31, 1997.
    • Final rule amendments modifying the formula for determining a reportable position were issued on December 18, 2002 (67 FR 7741), and became effective January 17, 2003.

GSA Regulations

  • Government Securities Act (GSA) Regulations:
    Treasury's     rules for government securities broker-dealers on financial responsibility, protecting customer securities and funds, recordkeeping, large position reporting, and financial reporting and audits. Also included are rules concerning custodial holdings of government securities by depository institutions.
  • Elimination of Credit Rating References:
    This proposed rule (PDF format, file size 162B, uploaded 9/27/11) would modify the Government Securities Act (GSA) regulations to replace references to credit ratings in Treasury's liquid capital rule with alternative requirements.  This rule would also make several non-substantive, technical amendments to Treasury's GSA regulations to update certain information or to delete certain requirements that are no longer applicable.  One a comment letter (file size 643KB, uploaded 11/30/2011) was received in response to the proposed rule.
  • GSA’s Applicability to Over-the-Counter Derivatives Dealers:
    This final rule (PDF format, file size 56KB, uploaded 9/15/06) modifies the Government Securities Act (GSA) regulations to state explicitly that Treasury deems over-the-counter derivatives dealers that are also government securities dealers to be in compliance with the GSA regulations if they comply with the applicable SEC rules for such dealers, and other SEC rules applicable to them.
  • Final Amendment to Custodial Holdings Requirement:
    This final rule amendment (file size 52KB, uploaded 5/23/05) modifies the Government Securities Act (GSA) regulations applicable to depository institutions holding government securities for the account of customers. It makes savings associations regulated and examined by the Office of Thrift Supervision eligible for the conditional GSA regulatory exemption for holdings subject to fiduciary standards. One comment letter (file size 101KB, uploaded 11/02/2004) was received in response to the proposed rule (file size 55KB, uploaded 9/23/04).
  • Modifications to Customer Protection Requirements:
    This final rule amendment (download PDF format, file size 101KB, file uploaded 6/14/04) modifies the Government Securities Act regulations to allow for the expansion of collateral that specialized government securities brokers and dealers may pledge when borrowing fully paid and excess-margin securities from customers' accounts. The accompanying exemptive order (download PDF format, file size 28KB, file uploaded 6/14/04) specifies the types of securities that may be pledged. Treasury did not receive any comment letters in response to the proposed rule (download PDF format, file size 44KB, uploaded 12/11/03) that was published on December 11, 2003.
  • Modification to Definition of Government Securities:
    This final rule change (download PDF format, file size 38 KB, file uploaded 5/24/01) makes a technical amendment to the GSA regulations to include qualified Canadian government obligations under the definition of “government securities” as applied to a bank.
  • Year 2000 Readiness Reports:
    Treasury's rule (download PDF format, file size 779.2 KB, file uploaded 01/12/99) requiring specialized government securities broker-dealers to file reports with the Securities and Exchange Commission regarding their year 2000 (Y2K) readiness.
  • Recordkeeping Rules for Banks:
    The recordkeeping requirements are clarified for bank government securities brokers and dealers in this amendment. Download file in PDF format (file size 30KB, file uploaded 2/18/97).
  • Treasury’s Buy-In Rules:
    This final rule amendment implemented a buy-in requirement for all government securities that are needed to complete a customer sell order (other than a short sale) if the securities have not been received from the customer within 30 calendar days after the settlement date for all government securities except mortgage-backed securities, or 60 calendar days after the settlement date for mortgage-backed securities. These requirements apply to all entities that are required to register or provide notice of their status as government securities brokers and dealers.
  • Go to Law and Guidance to view other Public Debt Rules and Regulations, Statutes and Federal Register Items
    Here you will find Public Debt's regulations published since July 1996 and links to other sites for relevant titles of the U.S. Code and Code of Federal Regulations.

Interpretations and Exemptions

In order to make essential government securities regulatory information more broadly available to the public, we are providing some of the most recent and frequently requested interpretations and exemptions on-line.

  • Order Granting Temporary Exemptions for CDS Central Counterparty:
    This     exemptive order (file size 205KB, uploaded 7/21/11) grants temporary exemptions from certain Government Securities Act (GSA) provisions and regulations in connection with a request from ICE Trust U.S. LLC (file size 72MB, uploaded 7/15/11) related to the central clearing of credit default swaps (CDS). Treasury is also soliciting public comment on this order. Submit comments on or before September 19, 2011.
  • Order Extending Temporary Exemptions for CDS Central Counterparty:
    This exemptive order (file size 61KB, uploaded 12/08/10) extends temporary exemptions from certain GSA provisions and regulations in connection with a request from ICE Trust U.S. LLC (file size 41KB, uploaded 11/30/10) related to central CDS.
  • Temporary Exemptions for CDS Central Counterparty:
    This exemptive order (file size 63KB, uploaded 3/11/10) grants temporary exemptions from certain GSA provisions and regulations in connection with a request from ICE Trust U.S. LLC (file size 45KB, uploaded 3/8/10) related to the central clearing of CDS. These exemptions specifically relate to the clearance of ICE Trust clearing members' proprietary and customer CDS transactions.
  • Conditional Temporary Exemption for CDS Central Counterparty:
    This exemptive order (file size 64KB, uploaded 1/28/10) grants a conditional temporary exemption from certain GSA provisions and regulations in connection with a request from ICE Trust U.S. LLC (file size 1.5MB, uploaded 12/04/09) related to the central clearing of CDS. This exemption specifically relates to the clearance of CDS transactions of ICE Trust clearing members' customers.
  • Extension of Temporary Exemptions for CDS Central Counterparty:
    This exemptive order (file size 45KB, uploaded 12/07/09) extends temporary exemptions from certain GSA provisions and regulations in connection with a request from ICE Trust U.S. LLC (file size 1.5MB, uploaded 12/04/09) related to the central clearing of CDS.
  • Temporary Exemptions for CDS Central Counterparty:
    This exemptive order (file size 69KB, uploaded 3/11/09) grants temporary exemptions from certain provisions of Treasury's GSA regulations in connection with a request on behalf of ICE US Trust LLC (file size 2.0MB, uploaded 3/06/09) related to the central clearing of CDS.

Topic Date Regulatory Cite(s)
Associated Persons/Dual Employees August 26, 1992 401.3
Business Lags - HIC Repos July 24, 1989 403.5(d)
Capital - Money Market Instruments June 1, 1989 402.2(d)
Clearing Fund Deposits - Allowable Assets August 30, 1989 402.2(d)
Confirmation Requirements February 26, 1988 403.5(d)(ii)
Custodial Holdings - Clearing Lien November 22, 1989 402.1(e)(8)(ii)(B)(5), 402.2(g)(1)(i)(B)(5)
Customer Securities at a Custodial Bank May 11, 1989 450.4(a)(2)
Customer Securities at a Fed Bank December 18,1987 450.4(a)(2)(i)(A)
Definition of Financial Institution April 18, 1990 400.3(j)
Electronic Confirmations for Banks/Depository Institutions October 27, 1997 403.5(d)(1)(ii)
Electronic Confirmations for Broker-Dealers October 27, 1997 403.2, 403.3, 405.2
Fax Confirms July 2, 1992 403.5(d)(1)(ii)
FICC (GSCC) - Aged Fails Treatment November 22, 1989 402.2(d), 403.4, 403.5
         Reaffirmation May 31, 2006 402.2(d), 403.4, 403.5
FICC (GSCC) as Counterparty for IDBs November 22, 1989 402.1(e)(2)(i)
FICC (GSCC) Concentration of Credit Risk Haircut August 26, 1997 402.1(e)(8), 402.2(g)(1)
Forward Repos for Banks/Financial Institutions April 19, 1996 404, 402.2
Forward Repos for Broker/Dealers March 4, 1996 404, 402.2
Give-Up Receivables April 4, 1988 402.1(e)(5), 402.2(d)(6)
Inflation-Indexed Securities Regulatory Treatment*
Inflation-Indexed Fungible TINTS*		 January 17, 1997
November 3, 1998		 400 et seq.
Large Position Reporting Qs & As December 14, 2005 420
Repos with Affiliates October 9, 1990 403.3, 403.5
Timing of Allocation June 21, 1993 403.5(d)(1), 404.4(a), 450.4
Tri-party vs. HIC Repos May 7, 1990 403.4(e), 403.5(d)
U.S.-Affiliated Foreign
Government Securities Broker-Dealers		 April 17, 1997 401.9
Written Agreements August 2, 1990 403.1, 403.4(e), 403.5(d)

*Note: Treasury changed references in the auction rules from “inflation-indexed” securities to “inflation-protected” securities (acronym “TIPS”) when the auction rules were converted to plain language (download PDF format, file size-224KB, uploaded 7/28/04, and related correction notice, download PDF format, file size-28KB, uploaded 9/2/04).

Statutes

Authorizing Statute (15 U.S.C. 78o-5) (PDF format, file size 181 KB, uploaded 08/02/2012)
Title 15 of the United States Code, Section 78o-5 authorizes the Secretary of the Treasury to propose and adopt rules with respect to transactions in government securities effected by government securities brokers and government securities dealers.

Government Securities Act (GSA) of 1986:
Congress passed the GSA (Download PDF format, file size 243KB, uploaded 6/09/2005) in 1986 which established for the first time a federal system for the regulation of the entire government securities market in order to protect investors and to ensure the maintenance of a fair, honest, and liquid market.

Government Securities Act Amendments (GSAA) of 1993:
The GSAA, (download PDF format, file size, 161K, uploaded date, 12/4/03) among other things, permanently reauthorized Treasury's rulemaking authority under the Government Securities Act and included provisions for establishing Treasury's large position reporting and recordkeeping rules.

Forms

Government Securities Act Forms
Forms G-FIN-4, G-FIN-5 and G-405 are available electronically. All three forms (and their instructions) can be downloaded, using the Adobe Acrobat Reader version 5.0 or higher) but must be printed, signed and mailed to the appropriate regulatory agency. (Select forms are electronically fillable.)

Reports

1998 Joint Study of the Regulatory System for Government Securities: The Treasury Department, Securities and Exchange Commission and Board of Governors of the Federal Reserve System submitted to Congress their Joint Study on the Regulatory System for Government Securities. Download file in PDF format (file size 681.70 KB, file uploaded 06/18/98).

1992 Joint Report on the Government Securities Market: The Treasury Department, Securities and Exchange Commission and Board of Governors of the Federal Reserve System submitted to Congress a report on the government securities market, as well as recommendations for legislation and changes in policies. Download file in PDF format (file size 2.3 MB, file uploaded 07/12/04).

Go To: Uniform Offering Circular (Auction Rules) Amendments

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