31 CFR 356.13 - When must I report my net long position and how do I calculate it?
(a)Net long position reporting threshold.
(1) If you are bidding competitively in an auction, you must report your net long position when the total of your bids plus your net long position in the security being auctioned equals or exceeds the net long position reporting threshold (See table.). We will specify this threshold in the auction announcement for each security (See § 356.10.). The threshold is typically 35 percent of the offering amount, but we may state a different threshold in the auction announcement. To see whether you must report your net long position, follow this table:
|If . . .||And if . . .||Then . . .|
|(i) the total of your bids and your net long position in the security being auctioned equals or exceeds the reporting threshold||you must report your net long position (which does not include your bids).|
|(ii) the total of your bids in the auction equals or exceeds the reporting threshold||you have no position or a net short position in the security being auctioned||you must report a zero.|
|(iii) the total of your bids and your net long position in the security being auctioned is less than the reporting threshold||you may either report nothing (leave the field blank) or report your net long position.|
(2) Also, if you have more than one bid in an auction and you must report either your net long position or a zero, you must report that figure only once. Finally, if you are a customer and must report either your net long position or a zero, you must report that figure through only one depository institution or dealer. (See § 356.14(d).)
(i) When-issued trading, including when-issued trading positions of the STRIPS principal components;
(ii) Futures contracts that require delivery of the specific security being auctioned (but not futures contracts for which the security being auctioned is one of several securities that may be delivered, and not futures contracts that are cash-settled); and
(2) Your holdings of STRIPS principal components of the security being auctioned ( paragraph (c)(2) of this section). We will specify the amount of holdings that you may exclude from the net long position calculation in the auction announcement. You may not take the exclusion if your combined holdings are zero or less. The exclusion is optional, but if you take the exclusion, you must include any holdings that exceed the exclusion amount in calculating your net long position. If the exclusion amount is greater than your combined holdings (paragraphs (c)(1) and (2) of this section), you may calculate the combined holdings as zero, but they cannot be included in the calculation as a negative number.
Title 31 published on 08-Apr-2017 03:32
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 31 CFR Part 356 after this date.
- 31 CFR 356.14 — What Are the Requirements for Submitting Bids for Customers?
- 31 CFR 356.22 — Does the Treasury Have Any Limitations on Auction Awards?
- 31 CFR 356.24 — Will I Be Notified Directly of My Awards And, if I Am Submitting Bids for Others, Do I Have to Provide Confirmations?
- 31 CFR 356.15 — What Rules Apply to Bids Submitted by Investment Advisers?