Regulations Governing CUBES (Coupons Under Book-Entry Safekeeping)

The Department of the Treasury (Department or Treasury) is issuing in final form an amendment to its regulations governing the CUBES (Coupons Under Book-Entry Safekeeping) program. The amendment provides a method to convert United States Treasury bearer securities that have been stripped of all non-callable coupons (stripped bearer corpora) to book-entry accounts. Stripped bearer corpora will be held in BECCS (Bearer Corpora Conversion System). Stripped coupons will continue to be held in CUBES. The amendment benefits investors in two ways: First, conversion of bearer securities to book-entry form provides a safe alternative to storage and accounting burdens associated with physical storage, and second, conversion eliminates the risk of loss or destruction of physical securities.