Specifications include, but are not limited to: 4.1. Custody, Safekeeping, and Settlement Services A. Provide a custody account in the Proposer’s trust department for the cash and securities owned by the City. The securities held by the custodian shall be registered in the name of the City. Cash and securities shall remain the sole property of the City. B. Collect all coupons and other periodic income on securities held. C. Settle purchases, sales, and other transactions upon receipt of instructions from authorized City staff on a delivery vs payment basis. D. Remit all proceeds from security maturities, calls, sales, and interest earnings via electronic payment to the City’s operating bank account on a daily basis. It is intended that the custody account will not hold any cash balances overnight. The City will remit funds by wire for all security purchases on the date of settlement. If a cash balance remains at the end of a business day due to trades failing to settle as scheduled, the funds remaining in the account may be held over until such time as the trade settles. E. Notify the City by the end of the business day if the Bank fails to receive any monies from investment sales, calls, maturities, and/or coupon payments on the dates due and/or which have been credited to the Custodial Account as herein above described. 4.2. Reporting A. Provide on-line reporting of portfolio activity and holdings on a same day basis. B. Provide on-line monthly activity statements and reports including the book value and market value of all portfolio holdings as well as detail of all transactions that occurred in the account during the month. C. Within five business days of the end of the month, provide the City with a downloadable report (Microsoft Excel compatible) showing the complete inventory of all securities held in safekeeping as of the last day of the previous month, showing each security with its Committee on Uniform Securities Identification Procedures (CUSIP) number, issuer name, coupon/interest rate, purchase (settlement) and maturity dates, type of security, S&P and Moody’s credit ratings, par value, book value, and month-end market value. D. Create, maintain, and retain all records relating to securities held in custody in the City’s account to meet the requirements and obligations under generally accepted accounting principles and California State law. 4.3. Cybersecurity The City requires proposers to have a proactive and multifaceted approach to cybersecurity. Proposal shall describe the financial institution's information security policy, encryption protocols, access controls, password management, file integrity monitoring, data management, and security assessments and audits.
