Centralized Treasury and Securities Management Division

Securities Clearance

The Securities Clearance Section is comprised of the Investment Clearance Unit and the Pledge Clearance Unit.

Investment Clearance Unit

The Investment Clearance Unit clears and settles securities purchased or sold for investment by the State Treasurer for the Pooled Money Investment Account (PMIA), the State Compensation Insurance Fund (SCIF), the State Lottery Commission Fund, the Public Works Board, the Department of Water Resources and other active investment funds. The Unit is responsible for accounting, reconciling and monitoring security transactions from initiation through settlement; calculating, collecting and authorizing wire transfers for each securityís principal and interest payment; and ensuring all transactions and payments are completed timely and accurately. As of June 30, 2016, the Investment Clearance Unit administered over $98 billion in securities consisting of 3,252 positions for 15 accounts; 12,524,985 shares of stock for two State Compensation Insurance Fund programs; and 239 time deposits representing $5.549 billion for 77 financial institutions in the Time Deposit Program. During fiscal year 2015-2016, the Investment Clearance Unit cleared and settled over 43,000 transaction items totaling $320 billion and over 10 million shares of stock.

The Unit also completes the monthly PMIA Market Valuation, which is posted to the Treasurerís website and utilized by Local Agency Investment Fund (LAIF) participants. Cash projection reports generated by the Unit are utilized by the Financial Services Section for determining the daily effect on the Treasurerís Pooled Money Investment Portfolio.

Pledge Clearance Unit

The Pledge Clearance Unit clears and settles securities pledged to the State for agencies or departments, such as the Department of Insurance, Employment Development Department, Department of Business Oversight, Contractorís State License Board and Department of Industrial Relations. The Treasurer acts as legal custodian for these securities, which are pledged by companies required by law to provide collateral in order to transact business within the State. The Unit is responsible for accounting, reconciling and monitoring security transactions from initiation through settlement; calculating, collecting and authorizing wire transfers for each securityís principal and interest payment; and ensuring all transactions and payments are completed timely and accurately. As of June 30, 2016, the Unit administered $12 billion of securities consisting of 5,628 positions for 1,331 individual accounts in 11 programs. During fiscal year 2015-2016, the Unit cleared and settled over 9,000 transaction items totaling $7 billion.

In addition to the duties listed above, the Securities Clearance Section also manages the Stateís Custodian Bank contract.