Fall Regulatory Summit

Internal Use Only

IntraFi Sweep

ƒ IntraFi and the bank enter into an agreement in which the bank commits to accept a targeted amount of funds from a broker-dealer up to a maximum amount, over terms ranging from 1 to 7 years, with auto-renewing beyond the 7 years. ƒ Funds are swept for customers of a custodial agent (typically, a broker-dealer) with free cash in their accounts. ƒ There are no collateralization requirements. ƒ The contracted rate is the all-in cost. ƒ The cost for funding is tied to an index, such as the Fed Funds Effective Rate, the Fed Funds Target Rate, or the Secured Overnight Financing Rate.

BNY Mellon — Settlement

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Internal Use Only

IntraFi Sweep (cont.)

ƒ Fees are negotiated with each custodial agent (often a broker-dealer); fees are all single-digit basis point amounts. ƒ IntraFi Sweep funding comes from cash that is “swept” into the bank from millions of individual investors, whose funds are held in brokerage accounts (or in other accounts at the custodial agent, if not a broker-dealer) from across the nation. ƒ The deposits are placed in highly-rated institutions, most of which are large institutions. ƒ The percentage change in daily IntraFi Sweep balances has remained largely within +/-.5%, and the single largest daily outflow represented only 1.3% of program balances. ƒ Typically, greater than 95% of IntraFi Sweep deposits are classified as savings deposits on a bank's Call Report.

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