Regulations Governing Book-Entry Treasury Bonds, Notes and Bills

The Department of the Treasury (Department) or (Treasury) is issuing in final form an amendment to its regulations governing book- entry Treasury Bonds, Notes and Bills to reduce the number of days required for processing transaction requests affecting payment instructions, transaction requests affecting reinvestments on Treasury bills, and for the receipt of evidence supporting such transaction requests within the TREASURY DIRECT system from 20 calendar days to 10 business days. This change will benefit the TREASURY DIRECT investor by giving such investor more time prior to a payment or maturity date to submit a transaction request affecting payment instructions, a transaction request affecting reinvestment of a bill, and evidence in support of such transaction requests, and will make the TREASURY DIRECT system a more viable alternative to TRADES, the commercial book-entry system for holding Treasury securities. In addition, Treasury is studying other possible changes to TREASURY DIRECT, including the possibility that investors could hold stripped securities in the TREASURY DIRECT system.