Special Direct Investments

Special Direct Investments allow eligible depositaries (already enrolled in the Direct Investment program) to receive additional credits from the Treasury. Special Direct Investments are similar to Direct Investments except that the collateral is held in a Borrower-In-Custody (BIC) arrangement, usually for no longer than 21 calendar days.

Requirements include:

  • Must be a Direct Investment participant
  • Must have at least $2.5 million of collateral in a BIC arrangement
  • Completion of the Agreement to Secure Special Direct Investments form
  • Selection of same-day or one-day prior notification

Similar to Direct Investments, funds are distributed among participating depositaries based on a same-day or one-day prior notification.

Same-Day Notification

Your institution will receive notice of a Direct Investment the same day the funds are to be credited to your Treasury Investment Program (TIP) Main Account

Same-Day Capacity

  •    SDI collateral value
  • – SDI account balance
  • = Same-Day Capacity

One-Day Prior Notification

Your institution will receive notice of a Direct Investment one business day prior to the day the funds are credited to your Main Account.

One-Day Capacity

  •    SDI collateral value
  • – SDI account balance
  • – Pending SDI investments
  • + Pending SDI withdrawals
  • = One-Day Capacity

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