12th District (San Francisco) DTC (Depository Trust Company) Pledge Arrangements

Please note: This information is specifically for the Federal Reserve Bank of San Francisco's DTC Pledge Arrangements. Information regarding your Federal Reserve Bank's DTC Arrangements may be available on your district's Contacts & Resources page

The DTC Pledge Arrangement may be available for your institution if it wishes to pledge securities held through DTC to the Federal Reserve Bank of San Francisco ("FRBSF").

DTC-eligible securities pledged to the Federal Reserve System (FRS) and the U.S. Treasury will be processed through an automated interface between the FRS and DTC. This automated interface allows deposits and withdrawals of DTC-eligible securities to flow directly into the FRS's collateral system; therefore, depository institutions can now pledge or withdraw as many DTC-eligible securities as necessary in a given business day. In addition, pre-notification (to the Federal Reserve) is no longer required when moving DTC-eligible securities into and out of the Discount Window, Payment System Risk and Treasury Tax and Loan (TT&L) accounts.

The Federal Reserve Bank of San Francisco accepts deposits and withdrawal requests from 5:00 A.M. to 12:00 P.M. PT. Requests for deposits or withdrawals received outside of the designated processing times, will be rejected by the FRS' collateral system and will need to be resubmitted during the next processing day.

Depository institutions pledging collateral for the Treasury Investment Option Program (TI0) should use the purpose pledge code "04". In the past, a purpose code "02" was used for both the TT&L and TIO collateral. Going forward, collateral pledged to these two programs should be submitted under separate purpose of pledge codes:

To pledge any DTC-held securities to FRBSF, your institution must:

• Instruct DTC, or your institutions' correspondent bank, to pledge the securities to FRBSF's 0618 account at DTC.
  

To release any DTC-held securities from FRBSF, your institution must:

• Instruct DTC, or your institution's correspondent to transfer the securities out of FRBSF's DTC pledge account. DTC will affect the transfer only upon its receipt of approval from FRBSF.

Please contact us for questions, or additional information.