Constituents of Depository System

The constituents of the Depository System in the Treasury market include:

Depository Participants (DPs): DPs are the intermediaries between investors and the depository. They are authorized by the depository to open and maintain accounts for investors and provide related services such as account statements, transaction statements, and other investor services.

Issuers: The issuers are the entities that issue Treasury securities such as the U.S. government. They appoint a registrar and transfer agent to maintain records of ownership of their securities.

Clearing Corporation: The clearing corporation acts as a central counterparty to all transactions in the Treasury market. It ensures the settlement of trades and manages the risks associated with these transactions.

Depository Trust and Clearing Corporation (DTCC): The DTCC is the primary clearing and settlement organization for the U.S. securities industry. It operates several depositories including the Depository Trust Company (DTC), which is the central securities depository for the Treasury market.

Federal Reserve Bank of New York: The Federal Reserve Bank of New York acts as the depository for the U.S. government’s securities. It maintains custody of the securities and manages the issuance, settlement, and redemption of Treasury securities.

The depository
The depository participants
The issuing company
The investors

In the depository system, the apex organization/unit is the Depository, which is just like a bank where deposit/investor can deposit and withdrawn the money/securities. In a depository, an investor can deposit and withdraw his shares.