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Federal

reserve

Bank

OF DALLAS
WILLIAM H. WALLACE
f i r s t v ic e p r e s id e n t

May 19, 1986

DALLAS, TEXAS 7 5 2 2 2

Circular 86-48

TO:

The Chief Executive Officer of all
depository institutions in the
Eleventh Federal Reserve District

SUBJECT
Implementation of enhancements to the book-entry securities service
DETAILS

Effective June 2, 1986, the following types of securities will be
eligible for book-entry transfer and safekeeping with the implementation of
SHARE release (3.5):
1.

Agency discount notes issued by the Farm Credit Administration (FCA),
Federal Home Loan Bank Board (FHLBB), Federal National Mortgage
Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC),
and the International Bank for Reconstruction and Development (IBRD);

2.

mortgage-backed securities issued by the Federal National Mortgage
Association; and

3.

participation certificates issued by the Federal Home Loan Mortgage
Corporation.
ATTACHM
ENTS

Attached is specific information regarding agency discount notes and
mortgage-backed securities.

For additional copies of any circular please contact the Public Affairs Department at (214) 651-6289. Banks,and others are
encouraged to use the following incoming WATS numbers in contacting this Bank (800) 442-7140 (intrastate) and (800)
527-9200 (interstate).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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MORE INFORMATION
To review prior correspondence regarding these securities refer to
this Bank's Circular 86-15, dated February 5, 1986. For further information
please contact Tyrone Gholson (214) 651-6263 at the Head Office; Robert W.
Schultz (915) 544-4730 at the El Paso Branch; Luke E. Richards (713) 659-4433
at the Houston Branch or Tony 6. Valencia (512) 224-2141 at the San Antonio
Branch.
Sincerely yours,

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SPECIFIC INFORMATION REGARDING
AGENCY DISCOUNT NOTES AND MORTGAGE-BACKED SECURITIES
Agency Discount Notes
A
notes.
to one
in the
to the

nine character CUSIP number has been assigned to each issue of discount
Since discount notes of most agencies may be issued for maturities up
year, numbers have been preassigned by the CUSIP Bureau for two years
future. The CUSIP numbers of the various discount notes will be added
SHARE system in advance.

The telegraphic abbreviations, and the minimum and multiple denominations
for each Agency's discount notes, are as follows:
Agency

Telegraphic
Abbreviations

FCA
FHLBB
FHLMC
FNMA
IBRD

FCDN
FHDN
FMDN
FNDN
WBDN

MM/DD/YY
MM/DD/YY
MM/DD/YY
MM/DD/YY
MM/DD/YY

Minimum
Denomination
$

5,000
100,000
25,000
10,000
5,000

Multiple
Denomination
$5,000
5,000
1,000
5,000
5,000

Mortgage-Backed Securities and Participation Certificates
Each pool of securities has been assigned a unique nine character CUSIP
number consisting of an issuer number (5 or 6 digits), an issue number (2 or
3 digits) and a check digit. For certain outstanding pools with multiple
interest rates or series, separate CUSIP numbers have been assigned to each
series or interest rate within the pool.
Because of the number of new CUSIP numbers (approximately 30,000
currently), the SHARE data base will be divided into an active and inactive
file. All issues which are held by any institution in the Eleventh District
will be retained on the active file; all issues not held will be on the
inactive file. This will insure that incoming CPD transfers of issues not
previously held will be processed upon receipt and then automatically moved to
the active file. While issues are in an inactive status, certain features of
SHARE such as inquiry and matching functions will not be operative.
For fixed rate issues, the securities description will include an
interest rate, telegraphic abbreviations, pool number and series (where
applicable), as follows:
Agency
FHLMC
FNMA

Telegraphic
Abbreviations
09.250 FMPC 140023 A
FNMS 09.250 AA 123456

Minimum
Denomination
$25,000
25,000

Multiple
Denomination
$1
1

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In addition, both FHLMC and FNMA offer a small number of issues which
have interest rates that may change on a monthly basis. For these securities,
different four letter security mnemonics will be used and the interest rate
will not be reflected in the securities description. For FNMA, a series of
"Xs" in place of the interest rate will indicate that it is an adjustable rate
security; FHLMC issues will show only the pool number and series, as indicated
below:

Agency

Sample
Telegraphic
Abbreviations

Minimum
Denomination

FHLMC
FNMA

FMAR 123456 A
FNAR XX.XXX VL 123456

$25,000
25,000

Multiple
Denomination
$1

1

Conversions of Mortgage-Backed Securities Held in Physical Form
Definitive securities you wish to convert to book-entry form must be
submitted to the Federal Reserve Bank of New York for conversion to book-entry
form under procedures prescribed by that Bank. As with conversions of other
registered securities, the completion of appropriate signature guarantees
and/or detached assignments will be required prior to the acceptance of the
definitive securities by the Federal Reserve Bank of New York. Upon receipt
of the securities and appropriately executed documents, the New York Reserve
Bank will convert the securities to book-entry form and transfer them by wire
to your account here, generally within five business days.
Instructions regarding the procedure to be followed as well as samples of
the required form may be obtained from your local Federal Reserve office.
Please note that there are no provisions for conversions from book-entry back
to the definitive form.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102