[Federal Register Volume 72, Number 11 (Thursday, January 18, 2007)]
[Rules and Regulations]
[Pages 2192-2193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-209]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 356

[Docket No. BPD GSRS 06-03]


Sale and Issue of Marketable Book-Entry Treasury Bills, Notes and 
Bonds--Securities Eligible for Purchase in Legacy Treasury Direct

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Final rule.

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SUMMARY: This final rule provides that the Department of the Treasury 
may announce that certain marketable Treasury securities to be offered 
will not be eligible for purchase or holding in the Legacy Treasury 
Direct system. Treasury is issuing this amendment to the auction rules 
because the Legacy Treasury Direct system will eventually be phased 
out.

DATES: Effective January 18, 2007.

ADDRESSES: You may download this final rule from the Bureau of the 
Public Debt's Web site at http://www.treasurydirect.gov or from the 
Electronic Code of Federal Regulations (e-CFR) Web site at http://www.gpoaccess.gov/ecfr. It is also available for public inspection and 
copying at the Treasury Department Library, Room 1428, Main Treasury 
Building, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. To visit 
the library, call (202) 622-0990 for an appointment.

FOR FURTHER INFORMATION CONTACT: Lori Santamorena (Executive Director) 
or Chuck Andreatta (Associate Director), Bureau of the Public Debt, 
Government Securities Regulations Staff, (202) 504-3632 or e-mail us at 
[email protected].

SUPPLEMENTARY INFORMATION: The Uniform Offering Circular (``UOC''), in 
conjunction with the announcement for each auction, provides the terms 
and conditions for the sale and issuance in an auction to the public of 
marketable Treasury bills, notes and bonds.\1\ There are three book-
entry securities systems--the commercial book-entry system, 
TreasuryDirect [supreg], and Legacy Treasury Direct [supreg]--into 
which we issue marketable Treasury securities.\2\ The current UOC 
generally authorizes purchases of all types of marketable Treasury 
securities in any of the three book-entry systems. The Legacy Treasury 
Direct system, which was implemented in 1986, will eventually be phased 
out, leaving only the newer, on-line TreasuryDirect system as the 
system for purchasing marketable Treasury securities directly on the 
records of the Bureau of the Public Debt, Department of the 
Treasury.\3\ The commercial book-entry system will remain an option for 
all securities for those investors who want to purchase and hold their 
securities through a depository institution or dealer.
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    \1\ The Uniform Offering Circular was published as a final rule 
on January 5, 1993 (58 FR 412). The circular, as amended, is 
codified at 31 CFR part 356. A final rule converting the UOC to 
plain language and making certain other minor changes was published 
in the Federal Register on July 28, 2004 (69 FR 45202).
    \2\ On September 30, 2005, Treasury issued a final amendment to 
the UOC to make the changes necessary to accommodate participation 
in Treasury marketable auctions for securities to be held in either 
the TreasuryDirect or the Legacy Treasury Direct system (70 FR 
57347).
    \3\ Legacy Treasury Direct was called TreasuryDirect from 1986 
to 2005. The regulations for Legacy Treasury Direct are found at 31 
CFR part 357. The regulations for TreasuryDirect are found at 31 CFR 
part 363.
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    As we begin phasing out Legacy Treasury Direct, we plan to 
discontinue the practice of generally allowing all marketable Treasury 
securities being offered by Treasury to be purchased and held in this 
system. This final rule amendment states explicitly that we may 
announce that certain marketable securities to be offered will not be 
eligible for purchase or holding in Legacy Treasury Direct. Any such 
restriction will be included in that security's offering announcement. 
This change will not affect any outstanding securities currently held 
in Legacy Treasury Direct.

Procedural Requirements

    This final rule is not a significant regulatory action for purposes 
of Executive Order 12866. The notice and public procedures and delayed 
effective date requirements of the Administrative Procedure Act do not 
apply, under 5 U.S.C. 533(a)(2).
    Since a notice of proposed rulemaking is not required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply.
    The Office of Management and Budget previously approved the 
collections of information in this final amendment in accordance with 
the Paperwork Reduction Act under control number

[[Page 2193]]

1535-0112. We are not making substantive changes to these requirements 
that would impose additional burdens on auction bidders.

 List of Subjects in 31 CFR Part 356

    Bonds, Federal Reserve System, Government Securities, Securities.

0
For the reasons stated in the preamble, 31 CFR part 356 is amended as 
follows:

PART 356--SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, 
NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR PUBLIC DEBT 
SERIES NO. 1-93)

0
1. The authority citation for part 356 continues to read as follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 3102 et seq.; 12 U.S.C. 391.


0
2. Amend Sec.  356.4 by revising the introductory paragraph and 
paragraph (c) to read as follows:


Sec.  356.4   What are the book-entry systems in which auctioned 
Treasury securities may be issued?

    There are three book-entry securities systems--the commercial book-
entry system, TreasuryDirect[supreg], and legacy Treasury 
Direct[supreg]--into which we issue marketable Treasury securities. We 
may obtain and transfer securities in these three book-entry systems at 
their par amount. Par amounts of Treasury inflation-protected 
securities do not include adjustments for inflation. Securities may be 
transferred from one system to the other, unless the securities are not 
eligible to be held in the receiving system. See Department of the 
Treasury Circular, Public Debt Series No. 2-86, as amended (part 357 of 
this chapter) and part 363 of this chapter.
* * * * *
    (c) Legacy Treasury Direct. In this system, we maintain the book-
entry securities of account holders directly on the records of the 
Bureau of the Public Debt, Department of the Treasury. Bids for 
securities to beheld in Legacy Treasury Direct are generally submitted 
directly to us, although such bids may also be forwarded to us by a 
depository institution or dealer. From time to time, Treasury may 
announce that certain securities to be offered will not be eligible for 
purchase or holding in Legacy Treasury Direct.

    Dated: January 12, 2007.
Donald V. Hammond,
Fiscal Assistant Security.
[FR Doc. 07-209 Filed 1-16-07; 1:47 pm]
BILLING CODE 4810-39-M