The SALE of Treasury bonds, notes, and bills finances the U.S. government, and those securities are, in turn, a PRIMARY VEHICLE for SAVINGS for a wide range of U.S. households. Treasury securities are ALSO an important source of collateral within the financial system.

The GOVERNMENT Securities Act gave the TREASURY DEPARTMENT some rulemaking authority over all government securities brokers and dealers. But the act also required these firms to register with the SEC.

To ensure FINANCIAL STABILITY, we expect the provision of U.S. GOVERNMENT securities settlement services to be ROBUST in nearly all contingencies.

By PURCHASING and HOLDING large amounts of Treasury securities and MBS, we PUT additional downward PRESSURE on term premiums and so on long-term rates.