Discussion Paper

Measuring Settlement Fails


Abstract: In June 2014, settlement fails of U.S. Treasury securities reached their highest level since the implementation of the Treasury fails charge in May 2009, attracting significant attention from market participants. In this post, we review what fails are, why they are of interest, and how they can be measured. In a companion post following this one, we evaluate the particular circumstances of the June 2014 fails.

Keywords: DTCC; Federal Reserve; Settlement fail; Treasury security;

JEL Classification: G1;G2;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2014-09-19

Number: 20140919b