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Federal Deposit Insurance Corporation

Division of Supervision

550 17th Street NW, Washington, DC 20429

Government Securities

July 10, 1996

Interpretation of Recordkeeping Rules on "Forward Repurchase
Agreement Transactions" Conducted by Financial Institutions
as Government Securities Brokers or Dealers



The Commissioner of the Department of the Treasury's Bureau of the Public Debt issued the attached
interpretative letter on April 19, 1996, to clarify the recordkeeping requirements of the Government
Securities Act of 1986 (GSA) and to promote consistent application of recordkeeping rules on "forward
repurchase agreement transactions" (forward repos). Forward repos are repurchase and reverse
repurchase agreements that settle in the future.
The recordkeeping rules apply to financial institutions that have filed, or are required to file, notice as
government securities brokers or dealers.
The Treasury Department views the timely recording of all government securities transactions, including
the recording of any unsettled future transactions, such as forward repos, as important in meeting the
purposes of the GSA and as an appropriate and prudent business practice. The timely issuance of
confirmations is also a fundamental tool for strengthening customer protection and a prudent business
practice in any type of government securities transaction.
The Treasury Department's interpretation will be included in the FDIC's loose-leaf service. For further
information, please contact the Government Securities Regulations staff of the Bureau of the Public Debt
at (202) 219-3632.

Nicholas J. Ketcha Jr.


The attachment to this Financial Institution Letter is not currently available in electronic format.
Until it is in a form that will allow us to post it to the internet, you may obtain hard copy or fax
Public Information Center
Room 100
801 17th St. NW
Washington, DC 20434
ph: (703) 562-2200
Distribution: FDIC-Supervised Banks (Commercial and Savings)

Last Updated 07/13/1999