Notice to Members 96-38

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

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.