GFOA YieldAdvantage Guidelines for Investors and Financial Institutions
Acknowledging Guidelines and Disclaimer:
Upon logging in to GFOA YieldAdvantage, Authorized Users
acknowledge they have reviewed and accept the Guidelines and Disclaimer, which
are accessible via the Guidelines and Disclaimer links on the GFOA
YieldAdvantage Home Page. Anytime an amendment to the Guidelines and/or
Disclaimer is posted, the date of that posting will be displayed next to the
Guidelines and Disclaimer links.
All-or-none, as distinct from maturity-by-maturity
Coupon securities issued by any of the following: (a)
Federal Farm Credit Banks ("FFCB"), Federal Home Loan Banks
("FHLB"), Federal National Mortgage Association ("Fannie Mae"),
Federal Home Loan Mortgage Corporation ("Freddie Mac"), Student Loan
Marketing Association ("Sallie Mae"), or Tennessee Valley Authority
Discount securities issued by any of the following: (a)
Federal Farm Credit Banks ("FFCB"), Federal Home Loan Banks
("FHLB"), Federal National Mortgage Association ("Fannie
Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac"),
Student Loan Marketing Association ("Sallie Mae"), or Tennessee
Valley Authority ("TVA").
Interest-bearing securities issued by Federal Farm Credit
Banks ("FFCB"), which pay all interest at maturity.
All amount inputs by Investors and Financial Institutions
are either in millions (e.g. $50,000,000 is input as "50" or
$50,123,456.78 is input as "50.12345678") or actual dollars (e.g.
$50,000,000 is input as "50,000,000") as determined by the Investor
and displayed on the Investors Solicitation Page and the Financial
Institutions Quote Page.
Approved Financial Institution:
Financial Institutions (banks, brokers, dealers, etc.)
designated by the Investor to receive Solicitation Alerts and permitted by the
Investor to provide quotes on the Investors solicitations.
Registered users who quote or solicit on behalf of Financial
Institutions or Investors.
Financial Institutions (banks, brokers, dealers, etc.) that
submit quotes for investment Instruments which Investors want to purchase.
Negotiable certificates of deposit
held in book-entry form at Depository Trust Company.
Non-negotiable certificates of deposit.
Quotes submitted and verified by Financial Institutions that
meet the guidelines (i.e., quotes eligible for acceptance by the
Internal rate of return. IRR is that rate at which future
cash receipts from interest payments and maturity amounts discounted back to
the settlement date equal the initial amount of the investment.
Minimum Amount (or minimum multiple),
by which Financial Institutions quote amount may exceed the Minimum Quote, as
designated by the Investor.
Means any of the following:
State or local governments which, in the course of executing
their fiduciary responsibilities for their cash and investment management
programs, purchase investments on a competitive basis.
Maturity-by-maturity, as distinct
from all-or-none ("AON").
Money market yield.
Maximum amount Financial Institutions are permitted to submit,
as designated by an Investor.
The Minimum Amount for which Financial Institutions may
submit a quote, as designated by the Investor. If the Investor specifies no
Minimum Amount, the Minimum Quote is for $1,000.
Minimum interest rate that Financial Institutions may
submit, as designated by the Investor.
Solicitations in which Financial Institutions who submit
quotes can see their Quote Status.
All price inputs by Financial
Institutions should be expressed as a percentage, up to 1/100,000 of one
percent (e.g., 99.12345%).
One or more of the following limits established by the
Investor and displayed on the Financial Institutions Quote Page: Minimum Rate,
Maximum Amount, Minimum Quote and Increment.
In an open auction, the status of a Financial Institutions
quote relative to other quotes during an auction in accordance with the
prioritizing quotes section herein. The Quote Status may be expressed as
either: 1) the amount such quote is "in the money," or 2) the rank
order of such quote (i.e., 1st, 2nd, 3rd, 4th,
etc.). Quote Status does not show rates or amounts submitted by other
Financial Institutions, nor does it show identities of other Financial
All interest rate (and yield)
inputs by Investors and Financial Institutions should be expressed as a
percentage, up to 1/100,000 of one percent (e.g., 3.12345%).
Solicitations in which Financial Institutions that submit
quotes cannot see their Quote Status.
Electronic messages delivered to Approved Financial
Institutions via e-mail or, for those logged into GFOA YieldAdvantage, via
pop-up browser window, which contains summary information pertaining to
particular solicitations and serves as an invitation to quote in response to
the InvestorŐs solicitations.
U.S. Treasury STRIPS (Separate
Trading of Registered Interest and Principal of Securities).
U. S. Treasury Bills.
U. S. Treasury Notes or Bonds.
An Investors official request for quotes from Financial
Institutions, which sets forth the terms and conditions of the solicitation for
a portfolio of securities.
Annualized fee based on the principal amount of the
investment made as a result of a solicitation on GFOA YieldAdvantage, payable
to Grant Street Group, the auction administrator, and shared with the
Government Finance Officers Association.
Steps for Executing Investment Transactions
- The Investor provides to Grant
Street Group its list (or lists) of its Approved Financial Institutions to
be entered on the GFOA YieldAdvantage site under the Investors unique ID.
Once the lists are created, they can be used for any investment
transaction through GFOA YieldAdvantage; they can also be revised at any
- The Investor prepares and
submits a solicitation for quotes to selected Approved Financial
- Financial Institutions prepare
and submit quotes to the Investor.
- GFOA YieldAdvantage
prioritizes quotes according to parameters selected by the Investor.
- The Investor accepts or
- The Investor notifies winning
Financial Institution(s) of accepted quote(s).
- The transaction is completed
and awarded to the winning Financial Institution(s).
- The Investor settles the trade
with the winning Financial Institution on settlement day.
Step 1 - Approved Financial Institution List
Creating Approved Financial Institution List:
To create an Approved Financial Institution list, the
Investor provides Grant Street Group with their general list of its approved
banks and broker dealers. From this general list, the Investor may create one
or multiple Approved Financial Institution lists and may add or remove selected
Approved Financial Institutions from their Approved Financial Institution
list(s) at any time. Investors are solely responsible for maintaining Approved
Financial Institution lists.
Step 2 - Solicitation for Quotes
Creating General Solicitations:
Investors may solicit quotes by creating a solicitation on
their Solicitation Page. The Investor designates the number of maturities to
solicit, whether the auction is to be open or sealed, the solicitation period,
the Minimum Rate (optional), the amount solicited (in accordance with Amount
Provisions), the Minimum Quote (optional), the settlement date, the maturity
date, the type(s) of Instruments, and approved list of Financial Institutions.
Grant Street Group is available to assist the Investor with creating
solicitations on their behalf. Investors are solely responsible for the
accuracy of the terms of their solicitations.
Starting, Modifying and Canceling Solicitations:
Solicitations start in accordance with solicitation periods
established by Investors when creating solicitations. Investors may modify
solicitations up to the time the solicitation period begins; or, in the
case of portfolio solicitations, Investors may modify solicitations up to the
time the quote submission period begins. Investors may cancel
solicitations up to the time the solicitation period ends.
Sending Solicitation Alerts:
Creating, starting and modifying solicitations will
automatically send Solicitation Alerts to an Investors Approved Financial
Creating Portfolio Solicitations:
Investors may solicit quotes for a portfolio of securities
by creating a solicitation on their Solicitation Page. Investors may solicit
quotes on an AON and/or MBM basis. For a portfolio, Investors designate
the number of maturities, whether the auction is to be open or sealed auction,
the solicitation and quote submission periods, the total proceeds, the
settlement date, acceptable Instruments, and the approved list of Financial
Institutions. For each maturity, Investors designate the amount solicited
(in accordance with Amount Provisions) and the maturity date. Grant Street
Group is available to assist the Investor with creating solicitations on their
behalf. Investors are solely responsible for the accuracy of the terms of their
Term Sheet for Portfolio Solicitation:
Investors may provide Grant Street Group with a Term Sheet
for posting to the GFOA YieldAdvantage web site. Investors are solely
responsible for the accuracy of the Term Sheet.
Financial Institutions are obligated to read and abide by
the provisions of a posted Term Sheet.
Saving and Submitting Quotes in Portfolio Solicitations:
An Investor may designate two phases for a portfolio
solicitation period: (1) a first phase in which the Financial Institutions
quotes may be saved only, and (2) a second phase in which Financial
Institutions may save or submit quotes (the "quote submission
period"). Financial Institutions may save quotes without completing all
inputs required for a submitted quote. On the Solicitation Page, the Investor
may view saved quotes; however, saved quotes are not Eligible Quotes and
Financial Institutions are not obligated to submit saved quotes. To submit a
quote, Financial Institutions must input quotes in accordance with the
"preparing and submitting quotes" section below.
Step 3 - Submitting Quotes
Preparing and Submitting Quotes:
Financial Institutions must complete the required inputs
displayed on the Quote Page and must input quotes in accordance with Amount
Provisions, Rate Provisions, Price Provisions and Quote Limits in order to
submit quotes. For certain solicitations, Financial Institutions are permitted
to select a maturity date other than the one designated by the Investor.
Financial Institutions submitting quotes will have an
opportunity to verify the terms of their quotes and the Transaction Fee. Quotes
submitted in accordance with the guidelines herein become Eligible Quotes.
Financial Institutions are obligated to honor submitted quotes if accepted by
the Investor, except as provided in the award/acknowledge time limits section
Converting Quote Inputs:
To prioritize quotes on an Investors Solicitation Page,
Financial Institutions rate inputs may be converted to another rate reflecting a common basis of comparison.
Any Instrument or combination of
Instruments, excluding Agency CPN and T-Note/Bond/STRIPS
Agency CPN or T-Note/Bond/STRIPS in combination with any
other Instrument or Instruments
Verifying CP Ratings:
Investors and Financial Institutions are solely responsible
for verifying ratings of CP issues. Neither the Government Finance Officers
Association nor Grant Street Group makes representation regarding the accuracy
of ratings of any CP issue displayed on GFOA YieldAdvantage.
Number of Quotes:
In Sealed Auctions, Financial Institutions may submit
any number of better and/or worse quotes. In Open Auctions, Financial
Institutions may submit better quotes only, as provided in prioritizing
quotes section herein.
Quotes will be prioritized and Quote Status will be
determined in one of two ways, as designated by the Investor: (1) by highest
rate; that being equal, then by greatest amount; those both being equal, then
by first quote received, or (2) by highest rate; that being equal, then by
first quote received; those both being equal, then by amount.
Step 5 - Accepting or Rejecting Quotes
Accepting or Rejecting Quotes:
Investors may elect to make automatic or discretionary
awards. In either case, Investors reserve the right to reject any or all quotes
at their sole discretion.
Automatic awards are made to
Financial Institutions (in full or in part) based on Quote Status immediately after
the solicitation period ends.
For discretionary awards, the
Investor must promptly accept or reject quotes once the solicitation period
ends. An Investor may accept quotes in full or in part (subject to Minimum Quote Limits), at their discretion.
Investors are not obligated to accept quotes with the highest rates and,
except as provided in the paragraph below, they cannot accept an amount from
any Financial Institution greater than that Financial Institutions quote
For certain discretionary awards, an Investor may
accept amounts from a Financial Institution greater than their quote amounts,
but not amounts greater than $1 million. In such solicitations, Financial
Institutions will be notified of this possibility before they submit quote.
For certain discretionary awards,
an Investor may be subject to a time limit for accepting or rejecting quotes,
as provided in the award/acknowledge time limits section herein.
Acknowledging or Withdrawing Quotes:
In Sealed Auctions only, Financial Institutions may
withdraw their quotes during the solicitation period.
Step 6 - Notification of Winning Quotes
Award/Acknowledge Time Limits:
Investors and Financial Institutions may be subject to a
time limit, whereby Investors have a specific amount of time to accept or
reject quotes (the "award period") and Financial Institutions have a
specific amount of time to acknowledge or withdraw quotes (the
"acknowledge period"). The particular period (i.e., award period or
acknowledge period) and time remaining will be disclosed to Investors on their
Solicitation Page and to Financial Institutions on their Quote Page.
Open and Sealed Auctions:
The Investor can accept
If the Investor accepts during
the award period,
can acknowledge or withdraw
The Financial Institution cannot
during the acknowledge period.
If the Investor rejects or allows the
If the Investor accepts during the
award period, and the
to expire, there is no trade.
allows acknowledge period
to expire (or withdraws),
there is no trade.
When Investors accept quotes during the award period, the
award period immediately ends and the acknowledge period begins.
Step 7 - Transaction Completed
In sealed and Open Auctions, once the solicitation period
ends and upon the Investors acceptance of quotes, Financial Institutions must
acknowledge their quotes, unless Financial Institutions are subject to a time
limit for acknowledging or withdrawing quotes, as provided in the
award/acknowledge time limits section herein. After Financial Institutions
acknowledge their quotes, they may enter or revise their settlement instructions
via the settlement link.
Step 8 - Settlement of Trade
Investors and Financial Institutions are responsible for
settlement of transactions conducted on GFOA YieldAdvantage. Settlement
information is provided on the Settlement Page and is accessible via the
Settlement link. Investors and Financial Institutions are responsible for
promptly providing settlement instructions and/or verifying the accuracy of
such data on the Settlement Page. Grant Street Group assumes no responsibility
for inaccuracies in settlement instructions.
Financial Institutions who submit quotes or, in particular
solicitations, Financial Institutions who formally pass on solicitations, may
see auction results via the Results Archive link on their Quote Page. Results
will be accessible after either (a) an Investor rejects the quotes, or (b)
Financial Institutions acknowledge the quotes.
The Investor determines how much information they wish to
release regarding results.
An Investor may elect to disclose to all Financial
Institutions the identities of the Financial Institutions who submitted quotes
Transaction Fee Disclosure and Payment:
Financial Institutions awarded funds on GFOA YieldAdvantage
will be charged a Transaction Fee. The Transaction Fee will be displayed to
Financial Institutions on the Verification Page (before their quote is
transmitted to an Investor) and on the Settlement Page (after they have
received an award).
Fees will be paid via Automated Clearing House ("ACH") debit two
business days following the trade date. Completion of the ACH Debit
Authorization on the Settlement Page represents the Financial Institutions
authorization to debit their account. Under certain circumstances, alternative
payment arrangements can be made with the permission of Grant Street Group.