(Archived Content)
Below is a summary of the more important features of the proposed buy-back regulations. These proposed rules are available at the Federal Register and at the Bureau of the Public Debt's website at www.publicdebt.treas.gov. The proposed regs call for a 60-day comment period.
Type of Offers: Competitive offers only, no noncompetitives.
: Competitive offers only, no noncompetitives.Type of Operation: A reverse auction, with a multiple-price process in which successful offerors receive the price at which they offered securities.
: A reverse auction, with a multiple-price process in which successful offerors receive the price at which they offered securities.Buy-back Operation Announcement: Treasury would issue a press release, which would include the eligible securities and the total amount of the buy-back. Treasury would have the right to buy back less than this amount.
: Treasury would issue a press release, which would include the eligible securities and the total amount of the buy-back. Treasury would have the right to buy back less than this amount.Eligible Submitters: Only primary dealers would be allowed to submit offers. This limitation would enable use of FRB New York's open market functionality. Other holders of eligible securities could participate through offers submitted by a primary dealer.
: Only primary dealers would be allowed to submit offers. This limitation would enable use of FRB New York's open market functionality. Other holders of eligible securities could participate through offers submitted by a primary dealer.Offer format: On basis of price, to 3 decimals, in 32nds. For example, 102.172. (third decimal represents 8ths of a 32nd)
: On basis of price, to 3 decimals, in 32nds. For example, 102.172. (third decimal represents 8ths of a 32nd)Maximum number of offers per security: No limit.
: No limit.Maximum amount of offers accepted from a submitter: No limit. In other words, no 35 percent type of limit.
: No limit. In other words, no 35 percent type of limit.Announcement of results: Treasury would issue a press release. For each security we buy back, the press release would provide the amounts offered and accepted, the highest price accepted, and the remaining privately held amount outstanding. FRB New York would transmit results messages to primary dealers informing them only of the acceptance of the offers they submitted.
: Treasury would issue a press release. For each security we buy back, the press release would provide the amounts offered and accepted, the highest price accepted, and the remaining privately held amount outstanding. FRB New York would transmit results messages to primary dealers informing them only of the acceptance of the offers they submitted.Settlement: On the day after the buy-back operation. Successful submitters would transfer securities against payment via Fedwire. Definitive securities also eligible for delivery.
: On the day after the buy-back operation. Successful submitters would transfer securities against payment via Fedwire. Definitive securities also eligible for delivery.Location of Rule: 31 CFR Part 375 (a new part).
: 31 CFR Part 375 (a new part). : Competitive offers only, no noncompetitives.: A reverse auction, with a multiple-price process in which successful offerors receive the price at which they offered securities.: Treasury would issue a press release, which would include the eligible securities and the total amount of the buy-back. Treasury would have the right to buy back less than this amount.: Only primary dealers would be allowed to submit offers. This limitation would enable use of FRB New York's open market functionality. Other holders of eligible securities could participate through offers submitted by a primary dealer.: On basis of price, to 3 decimals, in 32nds. For example, 102.172. (third decimal represents 8ths of a 32nd): No limit.: No limit. In other words, no 35 percent type of limit.: Treasury would issue a press release. For each security we buy back, the press release would provide the amounts offered and accepted, the highest price accepted, and the remaining privately held amount outstanding. FRB New York would transmit results messages to primary dealers informing them only of the acceptance of the offers they submitted.: On the day after the buy-back operation. Successful submitters would transfer securities against payment via Fedwire. Definitive securities also eligible for delivery.: 31 CFR Part 375 (a new part).