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 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, which is available online in the "forms and applications" area of the Members section. 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.