Master Custodian and Securities Lending Services

The Teacher Retirement System of Texas (TRS) has issued a Request for Proposal (RFP) for Master Custodian and Securities Lending Services, solicitation number CC-2200001, seeking a comprehensive financial services provider to manage its complex investment portfolio. The RFP requires a qualified contractor to deliver extensive custodial services including trading and securities support, asset transfers, account management, cash and collateral management, corporate actions, accounting, pricing and valuation, limited partnership services, performance measurement, investment compliance, information technology, and securities lending services. Minimum qualifications for respondents include having at least $20 trillion in custody assets, being a trust bank entity with specific credit ratings, and maintaining a Tier 1 Capital Ratio of at least 10%. The solicitation was released on September 13, 2021, with a non-mandatory pre-proposal conference held on September 23, 2021, and proposals due by November 2, 2021, at 3:00 p.m. Central Time. The evaluation will utilize a 120-point system assessing minimum qualifications, custody bank qualifications, governance model, key personnel, service delivery, cost, and potential presentations, with the TRS Board of Trustees making the final selection based on best overall value.

The contract opportunity includes provisions for Historically Underutilized Businesses (HUB) and appears to encourage diverse vendor participation through state guidelines. The initial contract term is five years with two optional one-year renewals, covering TRS's approximately $190.5 billion investment portfolio as of May 31, 2021. The portfolio encompasses diverse investment types including global equity, stable value, real return, and risk parity investments across multiple asset classes. While specific budget ranges are not explicitly stated, the comprehensive nature of services and portfolio size suggest a high-value contract with significant financial implications. The solicitation includes extensive documentation requirements, including detailed certifications addressing conflict of interest, antitrust compliance, and various state business regulations. Respondents must provide comprehensive financial and operational information, with potential disqualification for false statements or material misrepresentations. The contract will require sophisticated data management capabilities, including daily, weekly, monthly, and quarterly financial reporting across multiple investment categories and data feeds.