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On August 23, 1996, we issued a final rule governing securities held in the commercial book-entry system or TRADES (the Treasury/Reserve Automated Debt Entry System). This article briefly summarizes actions that we and others have taken since we adopted our TRADES regulations. It sets forth, in one place, citations to all of these actions.

Background

The TRADES regulations are at 31 CFR part 357. The Code of Federal Regulations or CFR can be searched by following this link. The final rule also is available for viewing (92k) (95k).

The TRADES regulations provide the legal framework governing transfers and pledges for all commercially-maintained Treasury book-entry securities. In large part, we based the TRADES regulations on Revised Article 8, dealing with Investment Securities, of the Uniform Commercial Code (referred to as Revised Article 8). Revised Article 8 is the product of a multi-year drafting project of the American Law Institute ("ALI") and the National Conference of Commissioners on Uniform State Laws ("NCCUSL"). Revised Article 8 was completed in 1994 and approved by the American Bar Association on February 14, 1995. In issuing the TRADES regulations, we decided not to preempt State law for those States that have adopted a version of Article 8 of the UCC that is substantially identical to Revised Article 8.

Security Entitlements

The TRADES regulations recognize and reflect a clear distinction between holdings of securities at Federal Reserve Banks and holdings at Securities Intermediaries other than Federal Reserve Banks.¹ The rights and property interests associated with a Security Entitlement² of a Participant³ held on the books of a Federal Reserve Bank are different from other security entitlements. As provided in Section 357.10(a) of the TRADES regulations, Federal law defines the scope and nature of a Participant’s Security Entitlement. The meaning of Security Entitlement under Federal law is thus different from that under Revised Article 8. However, to the extent not inconsistent with the TRADES regulations, the scope and nature of a Security Entitlement of an Entitlement Holder below the level of a Participant is defined by applicable State law, as determined pursuant to Section 357.11 of the TRADES regulations.

Choice of Law

As explained above, the TRADES regulations specify the law that governs the rights and obligations of persons maintaining securities accounts at the Federal Reserve Banks,⁴ as well as the United States and the Federal Reserve Banks. These rights and obligations are governed solely by Treasury regulations, including the TRADES regulations and the Uniform Offering Circular,⁵ the announcement of the offering and Federal Reserve Bank Operating Circulars.⁶

In contrast to holdings of securities at the Federal Reserve Bank level, the regulations also provide that the choice of law for persons holding interests in Treasury securities at levels below the level of persons maintaining Participant’s Securities Accounts, will be State law if the State has adopted a version of Article 8 that is substantially identical to Revised Article 8.⁷ The TRADES regulations define Revised Article 8 to mean the 1994 Official Text of the Uniform Commercial Code, Revised Article 8, Investment Securities (with Conforming and Miscellaneous Amendments to Articles 1, 3, 4, 5, 9 and 10).⁸ If the applicable State has not adopted Revised Article 8, then the law is the law of that State, as though Revised Article 8 had been adopted by that State.⁹

State Adoptions of Versions of Article 8

At the time that the TRADES regulations were issued, 28 States had adopted versions of Revised Article 8 that we determined were "substantially identical" to the uniform version for purposes of the regulations.¹² In the commentary to the TRADES rule, we indicated that as additional States adopted Revised Article 8, notice would be provided in the Federal Register as to whether the laws adopted are substantially identical to the uniform version. The following table shows the states and jurisdictions that we have determined have adopted versions of Revised Article 8 that are "substantially identical" to the uniform version. 

Date of Federal Register Publication	State Adoptions Recognized	File
August 23, 2026	Alabama, Alaska, Arizona, Arkansas, Colorado, Idaho, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, New Mexico, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wyoming	(92k) (95k)
January 2, 2026	California	(4k) (13k)
June 18, 2026	District of Columbia	(3k) (12k)
November 20, 2025	Delaware, Hawaii, Maine, Missouri, Montana, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Tennessee and Puerto Rico	(5k) (21k)
April 23, 2026	South Dakota	(4k) (68k)
July 1, 2026	Connecticut, Florida and Georgia	(5k) (21k)
September 21, 2026	Michigan, New Hampshire and Wisconsin	(4k) (20k)

We published final rules on August 13, 2026 (6k) (21k) and December 16, 2025 (7k) (13k) updating the list of jurisdictions contained in footnote 11 to Appendix B, the TRADES commentary.

Government-Sponsored Enterprises

The following table shows the government-sponsored enterprises that have adopted regulations essentially identical to the TRADES regulations for the securities maintained in the Federal Reserve Book-entry System:

Regulations For Government-Sponsored Enterprises

The Department of Housing and Urban Development published an interim rule for Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac") securities on December 2, 2025 (42k) (46k) and a final rule on May 29, 2026 (22k) (32k). These regulations are codified at 24 CFR part 81.

The Federal Housing Finance Board published an interim rule for Federal Home Loan Bank securities on December 3, 2025 (44k) (54k) and a final rule on February 18, 2026 (39k) (45k). These regulations are codified at 12 CFR Part 912. The Federal Housing Finance Board also published a final rule for Financing Corporation obligations on September 25, 2026 (17k) (34k). This regulation is codified at 12 CFR � 950.4.

The Thrift Depositor Protection Oversight Board published final rule for Resolution Funding Corporation securities on December 19, 2025 (28k) (40k). These regulations are codified at 12 CFR part 1511.

The Farm Credit Administration published an interim rule for Farm Credit securities, Farm Credit System Financial Assistance Corporation securities and Federal Agricultural Mortgage Corporation ("Farmer Mac") securities on December 20, 2025 (51k) (58k) and a final rule on October 14, 2025 (18k) (32k). See also the notice of effective date published on February 2, 2026 (2k) (12k). These regulations are codified at 12 CFR � 615.5450 et seq., � 615.5560 and � 615.5570.

We published a final rule for Student Loan Marketing Association (Sallie Mae") securities on January 6, 2026 (32k) (41k). These regulations are codified at 31 CFR Part 354.

The Tennessee Valley Authority (TVA) published a final rule for TVA Power securities on January 7, 2026 (20k) (34k). See also the technical amendments published on May 30, 1997 (4k) (19k). These regulations are codified at 18 CFR Part 1314.

Endnotes:

1.  A "Securities Intermediary" is defined generally as a person registered as a "clearing agency" under Federal securities laws, a Federal Reserve Bank or other person that provides clearance or settlement services with respect to a Book-entry Security. The term also includes a person, including a bank or broker, that in the ordinary course of business maintains securities accounts for others and is acting in that capacity (31 CFR � 357.2).

2.  A "Security Entitlement" is defined in the TRADES regulations as the rights and property interest of an Entitlement Holder with respect to a Book-entry Security. (31 CFR � 357.2).

3.  A "Participant" is defined in the TRADES regulations as a person that maintains a Participant’s Securities Account with a Federal Reserve Bank (31 CFR � 357.2).

4. These are referred to as Participant’s Securities Accounts and defined as accounts in the name of a Participant at a Federal Reserve Bank to which Book-entry Securities held for a Participant are or may be credited (31 CFR � 357.2).

5.  See 31 CFR Part 356 (for securities issued on and after March 1, 2026).

6.  See 31 CFR �357.10(a).

7.  See 31 CFR � 357.10(b), (c); 357.11.

8.  See 31 CFR � 357.2.

9.  See 31 CFR �� 357.10(c); 357.11 (d). We adopted this approach to provide uniformity for holders of interests in Treasury securities held in TRADES.