Fedwire Securities Service
The Fedwire Securities Service provides safekeeping, transfer, and
settlement services for securities issued by the Treasury, federal agencies,
government sponsored enterprises, and certain international organizations. The
Reserve Banks perform these services as fiscal agents for these entities.
Securities are safekept in the form of electronic records of securities held in
custody accounts. Securities are transferred according to instructions provided
by parties with access to the system. Access to the Fedwire Securities Service
is limited to depository institutions that maintain accounts with a Reserve
Bank, and a few other organizations, such as federal agencies,
government-sponsored enterprises, and state government treasurer’s offices
(which are designated by the U.S. Treasury to hold securities accounts). Other
parties, specifically brokers and dealers, typically hold and transfer
securities through depository institutions that are Fedwire participants and
that provide specialized government securities clearing services. In 2003, the
Fedwire Securities Service processed 20.4 million securities transfers with a
value of $267.6 trillion.