Treasury Issues Letter Clarifying Recordkeeping Requirements For Forward Settling Repurchase Agreement Transactions

Executive Summary

With the concurrence of the Securities and Exchange Commission (SEC), the Department of the Treasury (Treasury) recently issued a letter clarifying that the recordkeeping requirements of SEC Rule 17a-3 and Rule 17a-4 apply to forward settling repurchase and reverse repurchase agreement transactions (forward repos). In addition, the letter indicates that broker/dealers should issue confirmations of forward repo transactions on trade date.

Questions concerning this Notice may be directed to Treasury's Government Securities Regulations staff at (202) 219-3632 or to Susan DeMando, NASD Regulation Compliance Department, at (202) 728-8411.