Fedwire Securities Service
{{short description|Financial market infrastructure}}
The Fedwire Securities Service (FSS) is the central securities depository (CSD) for U.S. government securities, owned and operated by the Federal Reserve. As of 2018 it was the world's largest CSD by value of securities held, well ahead of the Depository Trust Company and of Euroclear Bank.{{citation |title=On the future of securities settlement |journal=BIS Quarterly Review |publisher=Bank for International Settlements |location=Basel |url=https://www.bis.org/publ/qtrpdf/r_qt2003i.pdf |date=March 2020 |author=Morten Linnemann Bech, Jenny Hancock, Tara Rice & Amber Wadsworth}}{{rp|69}}
Overview
The FSS started when the Federal Reserve began operating a book-entry system for U.S. Treasuries in 1968.{{citation |url=https://www.sechistorical.org/collection/papers/1990/1999_0101_DTCHistory.pdf |title=A Short History of the Depository Trust Company |date=1998}}{{rp|2}} Other federal and federally sponsored agencies followed suit in the 1970s and started issuing book-entry securities. In 1985, mortgage-backed securities were also issued in book-entry form by Fannie Mae and Freddie Mac, followed by Ginnie Mae in 1986.{{citation |publisher=Securities Industry and Financial Markets Association |title=Uniform Practices for the Clearance and Settlement of Mortgage-Backed Securities and Other Related Securities: Clearance and Settlement Infrastructure |page=4.2 |url=https://www.sifma.org/wp-content/uploads/2024/04/TBA_Market_Governance-Uniform_Practices_Manual-Chapter_4_Clearance_and_Settlement_Infrastructure.pdf |date=1999}}
Thus, the FSS has developed to provide issuance, maintenance, transfer and settlement services for all marketable U.S. Treasury securities and also some securities issued by other federal government agencies, government-sponsored enterprises, and international organizations such as the World Bank.{{cite web |website=Federal Reserve |url=https://www.federalreserve.gov/paymentsystems/fedsecs_about.htm |access-date={{date|2025-2-15}} |title=Fedwire Securities Service}} The Fedwire
Securities Service is also the key interbank settlement system for Fedwire-eligible securities.{{citation |url=https://home.treasury.gov/system/files/206/Securities-Settlement-Self-Assessment-8-09.pdf |title=Assessment of the Compliance of the Fedwire Securities Service with the Recommendations for Securities Settlement Systems |date=August 2009}}{{rp|3}}
See also
References
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Category:Federal Reserve System
Category:Central securities depositories
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