Electronic Confirmation of Transactions
and Electronic Records Storage
The Department of the Treasury has issued the attached interpretive letter
affecting certain banks wishing to use electronic mail for confirming
specific transactions, and to store records electronically. Banks affected
are those engaged in repurchase agreement transactions, registered as
government securities brokers or dealers, or holding government
securities for customers.
The Treasury Department's interpretive letter permits banks to use
electronic mail (e-mail) to transmit confirmations to overnight
hold-in-custody repurchase agreement customers. This interpretation
simplifies bank compliance with the Government Securities Act of 1986
(GSA) regulations requiring banks to send daily confirmations in writing
to these customers (17 CFR 403.5(d)(1)(ii)).
The interpretive letter also provides that banks that are registered
government securities brokers or dealers may store records electronically.
This interpretation simplifies compliance with GSA regulations for the
storage of records by banks that have registered as government securities
brokers or dealers (17 CFR 404.4). For state nonmember banks, the
provisions of 12 CFR part 344 also apply.
In addition, the interpretive letter
permits banks that hold government securities as custodian for
customers to transmit confirmations and safekeeping receipts
electronically. The interpretation simplifies requirements under
17 CFR part 450.
Banks wishing to take advantage of the provisions of the attached
interpretive letter should read it carefully as well as all applicable
citations before proceeding.
For more information on:
The GSA and the interpretive letter, contact the Treasury Department's
Government Securities Regulations staff at (202) 219-3632.
Recordkeeping and storage requirements
of 12 CFR Part 344, contact John F. Harvey, Review Examiner
(Trust) in the FDIC's Division of Supervision, at (202)
For other questions, please contact Kenton Fox, Senior Capital Markets
Specialist in the FDIC's Division of Supervision, at (202) 808-7119.
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial
institution letters may be obtained through the FDIC's Public
Information Center, 801 17th Street, N.W., Room 100, Washington,
D.C. 20434 (800-276-6003 or (703) 562-2200).