Frequently Asked Questions about the Ending of the SellDirect® Program in Legacy Treasury Direct® and TreasuryDirect®
- What is changing?
- Why is Treasury discontinuing the SellDirect program?
- How does the change affect me?
- Which brokerage firm/financial institution should I use and how much will they charge?
- Where can I find a listing of brokers? Would you provide me with a list of the different brokers?
- Once I open a brokerage account, what form do I complete in order to transfer my security?
- Once I submit the paperwork to you, how long must I wait before the transfer is completed?
- When is the last day you will accept SellDirect transactions?
- What happens if you received the request on December 17, 2010, but I did not have all the required information/evidence with my request?
- What happens if the brokerage firm/financial institution charges more than the security is worth?
- Since it won't pay me to sell my security, can I pledge it as collateral?
- Will there be any special provisions on selling securities with a low par value? For instance, I have a $100 security that I need to sell, but it is too expensive for me to sell it through a broker.
- What is the value of my security?
- How do I know that I'm getting the best price for my security?
The U.S. Department of the Treasury is phasing out the SellDirect program. This program allowed investors to sell marketable securities before maturity through the Federal Reserve Bank of Chicago. As of close of business on December 17, 2010, you will no longer be able to sell unmatured marketable securities using SellDirect.
Recent reviews of program costs indicate the fee falls short of full cost recovery. Because of the need to increase fees, the relatively low volumes sold, and the Presidential Administration's initiative to cut back or eliminate non-mission critical services, Treasury has decided to end SellDirect as of close of business on December 17, 2010.
Finally, since alternative service providers are available to conduct sales, Public Debt determined the SellDirect service is not critical to offerings in TreasuryDirect or Legacy Treasury Direct.
Additional Note: The original regulations for SellDirect contain a termination option for Treasury to end the service at anytime without prior notice at the discretion of the Department.
If selling an unmatured marketable security is necessary, the security must be transferred to a security account with a brokerage firm or financial institution, where the security may be sold.
We cannot advise you which brokerage firm/institution you should use or what fees will be charged.
We cannot provide you with a listing of brokers but suggest that you contact your financial institution or check the yellow pages or the internet to find a broker that is suitable for your needs.
You can transfer securities you hold in Legacy Treasury Direct by using a Security Transfer Request (PD F 5179). To transfer securities you hold in a TreasuryDirect account, complete TreasuryDirect Transfer Request (PD F 5511)
Transfers are ordinarily completed in 5 business days.
The SellDirect program will end at close of business on December 17, 2010. Treasury will accept any request received on this date if all evidence/information is with the request. Treasury will deny any request received after this date.
If the request is received on December 17, 2010, Treasury will notify you that the sale cannot be made due to insufficient information/evidence, and you will have until close of business on December 22, 2010 to submit the missing documentation. If the missing documentation is not received by December 22, 2010, the security must be transferred to a brokerage firm or financial institution to be sold.
Since brokerage firms/financial institutions are private entities, they determine fees charged.
Not while the security is in Legacy Treasury Direct or TreasuryDirect. You can check on moving your security to your bank, and the bank could create the pledge.
There are no special provisions for selling low par securities. We do encourage you to check all the resources available to you such as on-line trading, financial institutions, and broker/dealers.
This office does not maintain records concerning the market value of securities. In order to determine the market value, contact a broker or financial institution that handles the buying and selling of marketable securities. Back issues of financial publications containing these values may also be consulted.
The most common method is to get quotes from different brokers for comparative purposes before selling your security.