1.9: Treasury Direct System

Replace the Legacy Treasury Direct system.

Other Information:

REPLACE THE LEGACY TREASURY DIRECT SYSTEM. Although enhanced over the years, the Legacy Treasury Direct system operates on outdated technology that will become increasingly more expensive and difficult to maintain. Now that marketable securities are available in TreasuryDirect, we have been encouraging customers in the legacy system to transfer their holdings to TreasuryDirect. A critical next step will be enhancing TreasuryDirect to support ownership of securities by entities, such as estates, trusts, and organizations, so that the new system can accept all types of investors currently in the legacy system. To increase TreasuryDirect's appeal, we will also simplify its current process for reinvesting the proceeds of matured securities. Following appropriate notice, we will bar establishment of new accounts and new purchases in Legacy Treasury Direct. As investors in the legacy system begin to buy securities in TreasuryDirect, most of them will likely consolidate their existing holdings into their new TreasuryDirect accounts. But we can't compel remaining legacy investors to move their securities to TreasuryDirect, with its somewhat different provisions, including the need for Internet access. To manage the residual legacy accounts, we will build a replacement system that will also incorporate a number of other legacy securities applications. This consolidation of applications will increase efficiency, reduce costs, and eliminate dependency on outdated technology.

Stakeholder(s):

• Retail Securities Services Program

Indicator(s):

Indicator:1

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