Treasury Automated Auction Processing System - TAAPS

Filed Under » ,
Dictionary Says

Definition of 'Treasury Automated Auction Processing System - TAAPS'

A computer network system developed by the Federal Reserve (and facilitated by its banks) to process the tenders received for treasury securities. The treasury securities are traded through an auction process in the primary market. Tenders are received by TAAPS from brokers wishing to purchase marketable securities. Each bid is processed and reviewed automatically by TAAPS to ensure it is in compliance with the Treasury's Uniform Offering Circular.
Investopedia Says

Investopedia explains 'Treasury Automated Auction Processing System - TAAPS'

TAAPS was developed to become the heart of the operational process for the auctioning of treasury securities. The system is responsible for receiving bids, separating competitive and non-competitive bids, the ranking of competitive bids by increasing yield or discount rate and preparing a summary of the auction results.

Until 1993, bids were received in paper form and processed manually, which was an extremely time-consuming and inefficient process. The TAAPS system created the streamlined and efficient process needed to handle the growing volume of treasury securities trades. In 2003 the Federal Reserve auctioned off $3.42 trillion in securities.

Articles Of Interest

  1.

    Getting To Know The Money Market

    If you need liquidity and safety on a sum of money, don't forgo potential interest by keeping the funds as cash.

  2. Bond Basics Tutorial

    Investing in bonds - What are they, and do they belong in your portfolio?

  3. The Federal Reserve

    Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.

  4. Why Your Pension Plan Has Sovereign Debt In It

    One type of security pensions tend to invest in is sovereign debt, or debt issued by a government.

  5. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.

  6. Lessons Learned From the Banking Crisis

    There are lessons to be learned on how to handle severe financial downturns, and while the Fed is learning, politicians may not be.

  7. Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.

  8. 6 Popular ETF Types For Your Portfolio

    Exchange traded funds are an extremely popular diversification tool that can protect your portfolio during troubled periods.

  9. Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.

  10. Breaking Down The Fed Model

    Learn what pundits mean when they say that stocks are undervalued according to the Fed model.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center