US Fed Book-Entry Securities Settlement Resiliency Report

The U.S. Fed Book-Entry Securities Settlement Resiliency Report is intended to provide considerations for market participants as they develop their own contingency plans for a potential scenario in which the U.S. Primary Clearing Bank for U. S. Treasuries experiences a clearing and settlement system outage and is unavailable to support settlement of Fed-eligible Securities either bilaterally or via Tri-Party. 

SIFMA and PricewaterhouseCoopers (“PwC”) supported market participants as they developed a variety of considerations for market participants arising from a Clearing Bank outage scenario, as well as to describe how market participants might prepare their plans for this scenario. This Report also outlines key considerations to support market participants in developing their own contingency plans for such a scenario. The information provided in this report is intended to assist market participants pursuing the following objectives in the event of a disruption to Fed Book-Entry securities settlement stemming from a clearing bank outage:

  1. Minimize disruption to the broader Capital Markets
  2. Enable market activity to continue to the greatest extent possible

The development of this Report should not be interpreted as any assessment of the probability of an outage affecting post-trade infrastructure. On the contrary, it has been a priority of both market participants and infrastructure providers to invest in the resiliency of post-trade infrastructure, such that any infrastructure outage should be considered as a tail-risk scenario.

This Report is not intended to be an evaluation or assessment of the capabilities or resiliency of any market participant or their systems. Moreover, this report does not contain consulting advice or legal advice; questions regarding legal requirements or implications should be referred to Counsel and other questions should be referred to professional advisers.

This Report is also not intended to address all firm-specific issues and concerns – individual firms are expected to tailor information and considerations provided in this Report to guide their own firm-specific plans.

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