Board of Governors of the Federal Reserve System

Data Dictionary

Item Number J779

Call confidentiality applies to FFIEC 031/041.

Data Description:

As is the case of acceptances and Federal agency and GSE obligations, purchases and sales of U.S. Government securities are conducted by the New York Reserve Bank under authorization and direction from the FOMC. U.S. Government FAM - 2010 1 - 26 securities consist of U.S Treasury securities. The securities are bought from or sold to securities dealers and foreign and international accounts maintained at the New York Reserve Bank at market prices. Maturing securities may be exchanged with the Treasury for other securities or may be allowed to mature without exchange.

When securities are purchased or sold, the net amount of the transaction is paid to or collected by the New York Reserve Bank from the dealer and only the par value is entered to this account. Other accounts that may be affected are interest accrued, premium on securities, discount on securities and, in the case of sales, profit and loss. For all domestic securities transactions, premiums and discounts are recorded separately and amortized (accreted) on a straight-line basis. The securities are accounted for at amortized cost rather than fair value; therefore, no unrealized gains or losses are recognized.

On the day On the day of settlement the New York Reserve Bank allocates a share of the transaction to each Reserve Bank, including the portion of interest accrued, and the premium or discount. Profits and losses are allocated to each Bank based on the holdings at the opening of business.

Holdings of U.S. Government securities are in book-entry form and are pledged as collateral to secure Federal Reserve notes. Specific securities are not allocated to the individual Reserve Banks and the amounts on each Bank's books reflect an undivided interest.