1.3: Confidence

Preserve confidence in Treasury auctions through compliance.

Other Information:

PRESERVE CONFIDENCE IN TREASURY AUCTIONS THROUGH COMPLIANCE. A high level of confidence in a fair and competitive Treasury auction process is critical to attracting widespread market participation and ensuring the lowest cost of borrowing. Continuous monitoring and dealer visits are the cornerstones of our compliance program. The visits allow our staff to discuss findings revealed during our daily auction monitoring, review dealer auction operations, verify that dealers are complying with Treasury auction rules, and recommend changes to dealer internal processes and procedures to reduce the risk of auction violations. Education and training efforts, including formal auction rule instruction, will help Treasury securities investors better understand the auction rules and recognize the importance of compliance. This program and its emphasis on voluntary compliance, combined with our education efforts, have proven very effective in significantly reducing auction violations. It will be continued and enhanced, as appropriate, to maintain the integrity of Treasury auctions.

Stakeholder(s):

• Wholesale Securities Services Program

Indicator(s):

Indicator:1

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