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 security’s principal and interest payment; and ensuring all transactions and payments are completed timely and accurately. As of June 30, 2023, the Investment Clearance Unit administered over $196.38 billion in securities consisting of 3,851 positions for 13 accounts; 4,547,718 shares of stock for three State Compensation Insurance Fund programs; and 149 time deposits representing $5.082 billion for 31 financial institutions in the Time Deposit Program. During fiscal year 2022/23, the Investment Clearance Unit cleared and settled over 45,401 transaction items totaling over $558.89 billion.
The Unit also completes the monthly PMIA Market Valuation, which is posted to the Treasurer’s 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 Treasurer’s 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 Financial Protection and Innovation, Contractor’s 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 security’s principal and interest payment; and ensuring all transactions and payments are completed timely and accurately. As of June 30, 2023, the Unit administered $11.6 billion of securities consisting of 4,757 positions for 1,108 individual accounts in 11 programs and monitored 1,528,276 shares of stock for the Department of Insurance program. During fiscal year 2022/23, the Unit cleared and settled over 8,278 transaction items totaling approximately $5.24 billion.
In addition to the duties listed above, the Securities Clearance Section also manages the State’s Custodian Bank contract.