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Securities Management Division

The Securities Management Division is responsible for the service and redemption of State of California General Obligation bonds, revenue anticipation notes, and certain revenue bonds; executing the clearance and income collection for State investments (excluding PERS and STRS); and the safekeeping of securities and other personal property owned by or pledged to the State. The Division provides the following services:

Debt and Data Management

The Division monitors and manages the State of California fiscal agent accounts. It is responsible for the payment of debt service of Book-Entry bonds to our Trust Depository (DTC) and certificated bonds to our fiscal agent (Bank of New York) as well as the separate payments for Revenue Anticipation Notes (RAN's) and Warrants (RAW's). It performs accountability and reconciliation functions on three fronts, Debt Service Reporting, Un-presented Accountability and Cash Accountability.

Other duties include:

  • Processes new bond sales, calls and defeasances
  • Responds to inquiries from bondholders, banks, brokers, and depositories regarding the redemption for State of California bonds.
  • Administers the safekeeping function of the Division, clearing and settling approximately 6,000 transactions annually with an average monthly balance of $67 billion. It maintains accurate financial records and ensures security accountability.

The Division monitors and supports all databases including the New Data Delivery System (NDDS), Citibanking, Historical Data and the MSS databases. It is also responsible for developing and completing special projects including the Division Mission Statement, Strategic Plan, Outsourcing, Un-presented bonds, FAST, Mortgage-Backed Securities Pay-down Provider, and Securities Trading Finalization process.

State Investment Clearance

The Division administers securities owned by the State of California with an average monthly balance of approximately $60 billion. This includes overseeing the securities clearance and income collection of State investments. It clears and settles approximately 25,000 transaction items annually. It maintains accurate financial records and ensures security accountability.

Pledged Collateral Clearance

The Division administers the clearance and settlement of securities pledged as collateral to the State for the Time, Demand, and State Agency programs. It clears and settles approximately 19,000 security transaction items annually and has an average monthly balance of approximately $10 billion. It maintains accurate financial records and ensures security accountability.

Pledged Securities Clearance

The Division administers securities pledged to the State with an average daily balance of approximately $6 billion. This includes the clearance and settlement of pledge securities. It clears and settles approximately 7,000 security transaction items annually. It maintains accurate financial records and ensures security accountability.