2026-00598Proposed Rule

Treasury Updates Rules for Redeeming Marketable Securities Smoothly

Published Date: 1/14/2026

Proposed Rule

Summary

The Treasury is updating the rules for buying back marketable Treasury securities to let more people join in, clear up the paperwork, and match current practices. If you hold these securities, these changes could affect how and when you sell them back. Comments on the proposal are open until February 13, 2026, so now’s the time to speak up!

Analyzed Economic Effects

5 provisions identified: 1 benefits, 2 costs, 2 mixed.

More entities can submit buyback offers

Treasury proposes to expand who can submit offers directly in Treasury buyback (redemption) operations by allowing a limited number of additional counterparties (based on their participation in Treasury auctions) to access operations via the Federal Reserve Bank of New York's FedTrade system. Comments on the proposal are due by February 13, 2026.

Liquidated damages for failed deliveries (up to 1%)

If a submitter fails to deliver accepted securities on time, Treasury may require payment of liquidated damages of up to 1% of the submitter's projected settlement amount, and may take other actions such as barring participation in future redemption operations or auctions.

Limits on using FedTrade information

Submitters must certify they will not use redemption operation information from FedTrade as the basis for transactions unless the information is also available from another source at the time of the transaction or the transaction is solely to hedge specific, identifiable risks related to the buyback. They also may not pass FedTrade information to others except to effectuate permitted transactions.

Proration of highest accepted offers

Treasury states that offers at the highest accepted price for a particular security may be accepted on a prorated basis, meaning participants at that price might receive only a portion of the par amount they offered.

No rejection confirmations; website results posted

Treasury will post buyback results on its website and will send submitters a results message confirming acceptances by the close of the business day, but Treasury will not provide confirmations of rejected offers. Submitters who bid on behalf of customers are responsible for notifying those customers of impending redemptions.

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Key Dates

Published Date
Comments Due
1/14/2026
2/13/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Fiscal Service
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