transparency Budget and Finance

Texas Investments

One way the state of Texas maintains and grows its financial resources is through investments. The state as well as various subdivisions of state government use the services of the Texas Treasury Safekeeping Trust Company (TTSTC)

Trading, Trust, Settlement and Custody

The TTSTC is a special-purpose trust company whose mission is to preserve and grow the state's financial resources by competitively managing and investing them in a prudent, ethical and cost-effective manner.

The Trust Company was created by the Texas Legislature to efficiently and economically manage, invest and safeguard funds for its clients, the state and various subdivisions. The Trust Company is first and foremost a fiduciary organization. As such, it is held to the highest standard of care imposed in either law or equity and obligated to subordinate its own interests to those of its beneficiaries.

The Trust Company is incorporated and established as a separate, stand-alone organization with the Texas Comptroller of Public Accounts as its sole shareholder and director. The Comptroller appoints its CEO and delegates authority to the CEO and Trust Company staff to manage the organization.

The Trust Company manages the following investments:

Other TTSTC Services

Trading, Trust, Settlement and Custody

Through its trading desk and Settlement & Custody Services, the Trust Company acts as broker and custodian for marketable securities and mutual funds held by the Comptroller's Unclaimed Property Division. Custody and trading services are provided for certain other state agencies that may own marketable securities. For state agencies that issue debt, the Trust Company provides escrow services related to the retirement of bonds. The Trust Company also serves as the depository for newly issued bonds and performs the complex accounting functions associated with investing bond proceeds in guaranteed investment contracts (GICs).

Federal Reserve Membership and the Depository Trust Company

Texas has been granted a direct account with the Federal Reserve (the "Fed") and the Depository Trust Company ("DTC"). The Trust Company is allowed to maintain custody of assets at the Fed and DTC and to wire funds for limited purposes related to its business. Direct access to the Fed and DTC saves the state millions in fees that would otherwise be paid to commercial banks for these services. The Trust Company is not, however, allowed to compete with commercial banks.

Reports

The Texas Treasury Safekeeping Trust Company routinely measures performance via publically available reporting and audits.