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Safekeeping Services
High quality and
competitively priced safekeeping accounts and transaction
services are available. You can use
our comprehensive safekeeping service for receipt and delivery
of securities, corporate-action processing, monthly mark-to-market
asset statements. You may establish multiple accounts
(e.g. collateral, available-for-sale, held-to-maturity, trading,
PICs, security corporations, etc.) to meet your business needs.
Benefits of utilizing the Bank’s primary product
for safekeeping your collateral positions include:
- A reduction in collateral haircut of five percent — We
are able to offer this reduced haircut because Citibank
provides daily pricing of the security positions held with
them.
- Competitive fees — Many
correspondent alternatives charge 1 to ½ bps monthly
on the market value of positions held compared to our flat
fee of $5.00 per CUSIP. On a collateral position
with a market value of $100,000,000.00, this would equate
to a monthly charge of $5,000 - $10,000 (the equivalent
of 1,000 - 5,000 CUSIPS respectively if held with
us).
- Access to Internet portal system and services – Ability
to view and transact account activity via FHLB Direct,
our web-based system.
Trades may be entered and approved via FHLB Direct or via
facsimile transmission at 617-261-3344. We do request that
trades be reported by trade date or by noon on settlement
date at the absolute latest.
The following information is required on every security settlement:
- The original par value or number of shares for each security.
In the case of mortgage-backed securities, we require the
original face and the current face of the security.
- A full description of each security. In the case of bonds,
coupon rate and maturity dates are required.
- CUSIP number
- Broker/delivering agent
- Settlement location (i.e., Fed Book-entry, DTC, physical
NYC, London physical or Euro-clear)
- Complete delivery/receiving instructions (e.g., Fed wire
address, Contra symbol, DTC participant number, name of
your institution, your FHLB safekeeping account number)
- Trade date
- Settlement date
- For the purchase of new issue, please include:
- Issue date/dated date
- Payment cycle/first coupon
NOTE: For free deliveries out of the Bank, a call back
will be made to another authorized person at your institution
for verification
Bank policy prohibits the reporting of trades by anyone
other than authorized employees of the member institution.
If you have contracted the service of an advisor, we are
not allowed to accept trade instructions from them unless
we receive the following documentation:
- A resolution from the board of directors authorizing
the use of an advisor.
- A letter designating the appointed advisor, and the names
and signatures of the persons authorized at the advisor.
Transactions reported via facsimile must be on member letterhead,
signed by an authorized individual, and the name, printed
or typed, of that individual must appear on the instructions.
Please find the example trade
ticket. Please note the deadlines at the bottom of the
trade ticket. If these deadlines are not adhered to, processing
is done on a 'best effort' basis.
For more information, contact the Safekeeping Department
at safekeeping@fhlbboston.com
or 1-800-358-9709.
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