TIC Form SLT

OMB NO. 1505 – NEW
Approval Expires: xxxx
INSTRUCTIONS FOR THE MONTHLY TREASURY INTERNATIONAL CAPITAL (TIC)
FORM SLT

AGGREGATE HOLDINGS OF LONG-TERM SECURITIES BY
U.S. AND FOREIGN RESIDENTS
(TIC SLT)
Mandatory Report
Response Required By Law
(22 U.S.C. 3101 et seq.)

Department of the Treasury
Federal Reserve Bank of New York
Board of Governors of the Federal Reserve System
JUNE 30, 2011

TABLE OF CONTENTS

I.

Introduction
A. Purpose and Notice Under the Paperwork Reduction Act
B. Authority
C. Confidentiality of Data Reported
D. Other Statistical Reports

II. General Instructions
A. Who Must Report
B. Consolidation Rules
C. Exemption Level and Reporting Frequency
D. Accounting, Valuation and Currency Conversion Rules
E. Reporting the Location of Foreign Counterparties
Countries, Other Geographic Areas, and Organizations
Country Unknown
Determining Residency
F. What Must be Reported
G. How To Report
Funds and Related Equity Holdings and Ownership
Limited Partnerships
Securities Involved in Repurchase and Securities Lending Arrangements
Depositary Receipts/ADRs/Shares
H. Submission of Reports
Reporting Dates/Deadlines
Where to Report
Signature Requirements
Reporter ID Number
Data Retention
Review of Data and Request for Revised Data
III. Part A and Part B Instructions
IV. Column by Column Instructions (Parts A and B)
V. Instructions for the Of Which Rows
VI. Glossary
VII. Appendices:

INTRODUCTION
A. PURPOSE AND NOTICE UNDER PAPERWORK REDUCTION ACT
The purpose of the TIC Form SLT report is to gather timely and reliable information from U.S.resident reporters on foreign-resident holdings of long-term U.S. securities and on U.S. resident holdings of long-term foreign securities. This information is needed for preparation
of the U.S. Balance of Payments accounts and the U.S. international investment position, and
in the formulation of U.S. international financial and monetary policies.
No person is required to respond to any U.S. government collection of information unless the
form displays a currently valid control number assigned by the Office of Management and
Budget (OMB). TIC Form SLT report has been reviewed and approved by OMB under control
number 1505 - NEW.
The Treasury Department has estimated the average burden associated with the collection of
information on each TIC Form SLT report per respondent, but this will vary widely across
respondents: an overall average burden of 9.4 hours per respondent per filing, based on
seventeen hours for each major respondent and five hours for each other respondent. These
estimates include the time it will take to read the instructions, gather the necessary facts and fill
out the forms. Comments regarding the accuracy of this burden estimate and suggestions for
reducing this burden should be directed to the Office of Global Economics, U.S. Treasury
Department, Washington, D.C. 20220, Attention International Portfolio Investment Data
Systems; or the Office of Management and Budget, Paperwork Reduction Project (1505 - NEW),
Washington, D.C. 20503.
B. AUTHORITY
The filing of the TIC Form SLT report as set forth in Part II.A is required by law (22 U.S.C. 286f;
22 U.S.C. 3103; E.O. 11961; E.O. 10033; 31 C.F.R. 128.1 (a)). Failure to report can result in a
civil penalty of not less than $2,500 and not more than $25,000. Willful failure to report can
result in criminal prosecution and upon conviction a fine of not more than $10,000; and upon
conviction of an individual, imprisonment for not more than one year, or both. Any officer,
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director, employee, or agent of any corporation who knowingly participates in such violation
may, upon conviction, be punished by a like fine, imprisonment, or both (22 U.S.C. 3105
(a), (b) and (c); 31 C.F.R. 128.4 (a) and (b)).
C. CONFIDENTIALITY OF DATA REPORTED
The TIC Form SLT report is filed with the Federal Reserve banks in their capacity as Treasury’s
fiscal agents, as further described in Part II. Data reported on this form will be held in
confidence by the Department of the Treasury, the Board of Governors of the Federal Reserve
System, and the Federal Reserve Banks acting as fiscal agents of the Treasury. The data
reported by individual respondents will not be published or otherwise publicly disclosed;
information may be given to the Board of Governors of the Federal Reserve System and to
other Federal agencies, insofar as authorized by applicable law (44 U.S.C. 3501 et seq.; 22
U.S.C. 3101 et seq.). Aggregate data derived from reports on this form may be published or
otherwise publicly disclosed only in a manner that will not reveal the amounts reported by
any individual respondent.
D. OTHER STATISTICAL REPORTS
1. The TIC B Forms are filed by all U.S.-resident banks and other depository institutions,
securities brokers and dealers, and Bank Holding Companies/Financial Holding
Companies (BHC/FHC). (However, the positions of insurance underwriting
subsidiaries of BHCs/FHCs are excluded from the TIC B Forms and included in the TIC
C Forms.) On the TIC B Forms these entities report their short-term securities or
non-securities positions with foreign residents, including foreign affiliates. Also
reported on the TIC B Forms are certain positions of the customers of TIC B
reporters; TIC C reporters who are customers of these TIC B reporters should not
report these positions to avoid double counting.
2. The TIC C Forms are filed by all U.S. entities other than depository institutions, Bank
Holding Companies/Financial Holding Companies (BHCs/FHCs), and securities brokers
and dealers. (As an exception, the positions of insurance underwriting subsidiaries of
BHCs/FHCs are excluded from the TIC B reports and reported by the BHCs/FHCs for
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the underwriting subsidiaries on the TIC C reports.) On the TIC C Forms, these
entities report positions with unaffiliated foreign-resident entities that are either
short-term securities or non-securities.
3. The TIC D Form is filed by all major U.S.-resident participants in derivatives markets.
This form is designed to obtain data on holdings of, and transactions in, financial
derivative contracts with foreign residents. Data are collected in aggregate form to
facilitate timely reporting.
4. The TIC S Form is filed by all U.S.-resident entities that purchase (or sell) long-term
securities directly from (or to) foreign residents. This form is designed to obtain data
on foreigners’ purchases and sales of all long-term securities (including equities and
shares of mutual funds). Data are collected in aggregate form to facilitate timely
reporting.
5. To improve the accuracy of the TIC system and collect information on positions in
securities, detailed security-by-security data are collected on a less frequent basis.
Two data collection systems are used:
a. Foreign Holdings of U.S. Securities, Including Selected Money Market
Instruments (Form SHL) - Approximately every five years, all significant U.S.resident custodians of short-term debt, long-term debt, and equity securities
are required to provide detailed security-by-security information on foreign
holdings of U.S. securities. Also required to report are significant U.S. issuers
of bearer bonds and U.S. issuers of securities that are held by foreigners but
not through U.S. custodians. In the years between these benchmark surveys,
the largest of these reporters are required to submit this security-by-security
information annually (Form SHLA).
b. U.S. Ownership of Foreign Securities, Including Selected Money Market
Instruments (Form SHC) - Approximately every five years, all significant U.S.resident custodians of foreign securities and U.S.-resident end-investors
holding securities without using U.S.-resident custodians are required to
report detailed security-by-security information on their holdings of foreign
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securities. In the years between these benchmark surveys, the largest of
these reporters are required to submit this security-by-security information
annually (Form SHCA).
6. The Treasury Foreign Currency (TFC) Forms are designed to obtain data on the
assets, liabilities, and forward positions of large U.S.-resident institutions (both
banking and non-banking) in specified foreign currencies.
7. Direct Investment- Data on cross-border Direct Investment are collected by the
Bureau of Economic Analysis, U.S. Department of Commerce. The data collections
are designed to obtain comprehensive data on the transactions and positions
between affiliated U.S. and foreign companies (“multinational companies”), and on
the overall operations of multinational companies. To be affiliated, a U.S. company
must own or control 10 percent or more of the voting securities of an incorporated
foreign business (or an equivalent interest in an unincorporated foreign business), or
a foreign company must own or control 10 percent or more of the voting securities
of an incorporated U.S. business (or an equivalent interest in an unincorporated U.S.
business). (See Direct Investment in the Glossary.)

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II.

GENERAL INSTRUCTIONS
For purposes of the TIC Form SLT report and these instructions, terms used may be further
defined in the Glossary. Questions regarding these instructions or the TIC Form SLT report
should be directed to the Federal Reserve Bank where the report is filed.

A. WHO MUST REPORT
All U.S. persons (defined in the Glossary) who are U.S.-resident custodians (including U.S.resident central securities depositories), U.S.-resident issuers or U.S.-resident end-investors
(as described below) and who meet or exceed the reporting threshold set forth in Section II.C
Exemption Level must file the TIC Form SLT report .
U.S-resident custodians include the following:
1. U.S.-resident custodians must report in Part A all U.S. securities that they hold in
custody (or manage the safekeeping of) for the account of foreign residents
(including their own foreign branches, subsidiaries, and affiliates) and all foreign
securities they hold in custody (or manage the safekeeping of) for the account of U.S.
residents; and report in Part B all foreign securities they hold for their own account
(even if the foreign securities are then transferred to a foreign-resident custodian for
safekeeping).
2. U.S.-resident central securities depositories, must report in Part A all U.S. securities
they hold in custody (or manage the safekeeping of) directly on behalf of foreign
residents with which they have established direct relationships, including foreignresident brokers, dealers, exchanges, and central securities depositories.
U.S.-resident issuers:
U.S.-resident issuers must report in Part B all securities issued by the U.S.-resident
units of their entity directly to foreign residents, including:
a. Registered securities that are owned by foreign residents for which neither a
U.S.-resident custodian nor a U.S.-resident central depository is used (transfer
or paying agents should be able to provide the U.S. -resident issuer this
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information.);
b. Book-entry securities that are held at a foreign-resident central securities
depositories;
c. Bearer securities; and
d.

Shares or other units or other equity interests issued directly to or placed
with foreign residents (e.g.: a U.S.- based master fund issues shares to foreign
feeder funds; limited partners’ interests in limited partnerships)

U.S.-resident end-investors:
U.S.-resident end-investors must report in Part B all investments in foreign securities
for their own portfolio or for the portfolios of their clients that are not held by U.S.resident custodians. These securities include those that are held-for-trading,
available-for-sale, held-for-maturity, or which have been invested on behalf of others
such as by managers of mutual funds, insurance companies, and pension funds.
Collectively, such investors are referred to as “end-investors” throughout these
instructions.
U.S.-resident end-investors include, but are not limited to:
a. Financial and non-financial organizations;
b. Managers of private and public pension funds;
c. Managers of mutual funds, country funds, unit-investment funds, exchangetraded funds, collective investment trusts, or any other similarly pooled,
commingled funds;
d. Insurance companies;
e. Foundations;
f.

Institutions of higher learning (i.e., university endowments);

g. Trusts and estates; and
h. Funds and similar entities that own shares or units of, or other equity
interests in a foreign related or non-related entity (example: a U.S.-based
feeder fund owning shares of an offshore-based master fund).
If a reporting organization is an issuer and/or end-investor and a custodian (as described
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above), both Part A and Part B of the report form must be completed. (See Section III.)

B. CONSOLIDATION RULES
For purposes of this report, U.S.-resident entities, including bank holding companies (BHC) and
financial holding companies (FHC) should consolidate all their subsidiaries including their
international banking facilities (IBF), except for foreign-resident offices and subsidiaries, in
accordance with U.S. GAAP. All other U.S.-resident entities that are not 50 percent or more
owned by another U.S.-resident company, including BHCs and FHCs, should include all
reportable securities for U.S.-resident parts of their organizations, including U.S.-resident
branches and subsidiaries.

U.S. residents include entities organized under the laws of the Commonwealth of Puerto Rico or
the U.S. territories. Please see the Glossary for the complete definition of United States. It is the
responsibility of the U.S. parent entity in each organization to ensure that its report includes all
applicable entities within its organization.

U.S.-resident trusts, variable interest entities (VIEs) and special purpose entities (SPEs)
consolidated under U.S. GAAP should be consolidated. Equity interests in U.S.-resident funds
that are managed by the reporting entity should be included unless U.S.-resident custodians
other than the reporting entity are used.

U.S. branches and agencies of a foreign bank located in the same state and within the same
Federal Reserve District should submit a consolidated report for these offices. U.S. branches and
agencies of a foreign bank that are located in either different states or different Federal Reserve
Districts, should submit separate reports.
Investment advisors and managers should file one consolidated report of the holdings and
issuances of all U.S.-resident parts of its own organization and of all U.S.-resident entities that
they advise/manage.

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C. EXEMPTION LEVEL AND REPORTING FREQUENCY
The TIC Form SLT report exemption level is applied to the consolidated reportable holdings and
issuances (positions) of reporting entities, which are U.S.-resident custodians, U.S.-resident
issuers of U.S. securities, and U.S.-resident end-investors in foreign securities. For each reporting
entity, the consolidated total of all reportable long-term U.S. and foreign securities has a total
fair value equal to or more than the exemption level on the last business day of the reporting
month. The exemption level is $1 billion. The consolidated total includes amounts held for a
reporting entity’s own account and for customers. The reporting entity should include
reportable securities for all U.S.-resident parts of the reporting entity, including all U.S.
subsidiaries and affiliates of the reporting entity and investment companies, trusts, and other
legal entities created by the reporting entity. U.S.-resident entities include the affiliates in the
United States of foreign entities. Reportable long-term securities include: (1) U.S. securities
whose safekeeping U.S.-resident custodians manage on behalf of foreign residents; (2) foreign
securities whose safekeeping U.S.-resident custodians manage on behalf of U.S. residents; (3)
U.S. securities that are issued by U.S.-resident issuers in the foreign market and are held directly
by foreign residents, i.e., where no U.S.-resident custodian or U.S.-resident central securities
depository is used by the U.S.-resident issuer; and (4) foreign securities that are held directly by
U.S.-resident end-investors, i.e., where no U.S.-resident custodian is used.

Once the consolidated total of all reportable long-term U.S. and foreign securities for a
reporting entity has a total fair market value equal to or more than the exemption level on the
last business day of a reporting month, the reporting entity must submit a report for that
month. In addition, the reporting entity also must submit a report for each remaining month in
that calendar year, regardless of the consolidated total of reportable securities held in any
subsequent month.

D. ACCOUNTING, VALUATION AND CURRENCY CONVERSION RULES
Accounting Rules
All securities should be reported using settlement date accounting. Gross long positions should
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be reported. Do not net any short positions from long positions. Do not enter decimals or
negative values.
Valuation of Securities
Report the fair value of securities as of the last business day of the month. The fair value
follows the definition of ASC 820 (formerly FAS 157).
U.S.- resident custodians should, at a minimum, report the fair value to the extent that it is
available as part of the services provided to their customers, even if the price available is for a
date prior to the last business day of the month. If there are questions about valuation, please
contact the Federal Reserve Bank to which you report or the Federal Reserve Bank of New York
staff at (212) 720-6300 or (646) 720-6300.
Foreign Currency Denominated Securities- Calculation of U.S. Dollar Values
If the security is not denominated in U.S. dollars, convert the foreign currency denominated fair
value into U.S. dollars using the spot exchange rate as of close of business on the last business
day of the month.

E. REPORTING THE LOCATION OF FOREIGN COUNTERPARTIES
Countries, Other Geographic Areas, and Organizations
Positions with foreigners should be reported for the country or geographical area in which the
foreign-resident holder of U.S. securities resides and the country or geographical area in which
the foreign-resident issuer of foreign securities resides. (Certain international and regional
organizations also have codes assigned to them.) Do not report positions based on the
currency of denomination of the instrument, the country of the parent organization of the
counterparty (i.e., nationality), the country of issuance of the instrument, or the country of a
guarantor (i.e., ultimate risk). Please note – branches of U.S.-resident banks located outside the
U.S. are foreign residents. U.S.-resident branches of foreign banks are U.S. residents.

Country Unknown
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The country unknown category is intended to capture securities that cannot be allocated to a
particular country. Include in “Country Unknown” securities for which the holder (and hence, the
country of residence) is not known. Certificated bearer bonds and global receipts should be
reported in “Country Unknown” if the holder is unknown. If, however, bearer global receipts or
other global securities are held by a central securities depository (CSD), directly or through an
affiliated nominee company, then report the country of residence of the CSD or the nominee
company that is the holder of record.

Determining Residency
Determining the residence of counterparties
Counterparty residency is determined by the country of legal residence (e.g., the
country of incorporation, or, for a branch, of license). For example:
a. International and Regional Organizations (see Appendix C) are residents of
the International and Regional Organizations areas, not the countries in which
they are located. Note: Pension plans of international and regional
organizations, if located in the United States, are U.S.-resident entities;
therefore, any U.S. securities owned by these pension plans should be
excluded from this report.
Exception
Positions and transactions with the Bank for International
Settlements (BIS), the European Central Bank (ECB), the Eastern
Caribbean Central Bank (ECCB), the Bank of Central African States
(BEAC), and the Central Bank of West African States (BCEAO), should
each be reported opposite their name in the list of Foreign
Economies and Organizations.
b. Partnerships, trusts, and funds are residents of the country in which they are
legally organized. For example, pension funds of International and Regional
Organizations are residents of the country of residence of the pension fund.
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c. Banks, BHCs, FBOs, securities brokers and dealers, corporations and
subsidiaries of corporations are residents of the country in which they are
incorporated (not the country of the head office or primary operations).

d. Bank branches are residents of the country in which they are licensed (not the
country of the head office).

e. Offices of foreign official institutions and embassies are residents of their
parent country.

f. Individuals are residents of the country in which they are domiciled.

g.

Entities or individuals that file an IRS Form W-8, indicating that they are
foreign residents, are treated as such. Please note that there may be
exceptions (such as Puerto Rico). However, if an IRS form is not available, the
mailing address can be used to determine residency.

F. WHAT MUST BE REPORTED
The TIC Form SLT report collects monthly data on cross-border ownership by U.S. and foreign
residents of long-term (original maturity of more than one year or no contractual maturity)
securities for portfolio investment purposes. If the investment is not direct investment, then it
will fall into the category of portfolio investment and needs to be reported as part of the TIC
system. (See Glossary for definitions of portfolio investment and direct investment.)
Reportable long-term portfolio securities include:
1. Securities issued by U.S. residents that are owned by foreign residents, including U.S.
equities, U.S. debt securities, U.S. asset-backed securities, and U.S. equity interests in
funds.
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Securities are considered to be owned by foreign residents if, according to the
reporter’s records, the holder of record is not a resident of the United States. In
addition, all outstanding bearer bonds are considered to be owned by foreign
residents and should be reported by the U.S.-resident issuer. Bearer bonds should
also be reported by U.S.-resident custodians, but only if the reporter’s records
indicate a foreign-resident owner, foreign-resident custodian or foreign-resident
central securities depository.
2. U.S.-resident holdings of foreign securities, including foreign equities, foreign debt
securities and foreign asset-backed securities.
Foreign securities include all securities issued by entities that are established under
the laws of a foreign country (i.e., any entity that is legally incorporated, otherwise
legally organized, or licensed (such as branches) in a foreign country) and all
securities issued by international or regional organizations, such as the International
Bank for Reconstruction and Development (IBRD or World Bank), and the InterAmerican Development Bank (IADB), even if these organizations are located in the
United States.
Exception: Foreign securities held by a U.S. depository to back depositary
receipts/shares should not be reported. Instead, the holders of the depositary
receipts/shares should report the receipts/shares. This exception is necessary to
identify the portion of depositary receipts/shares actually held by U.S. residents,
since many depositary receipts/shares are held by foreign residents.
Reportable securities may be traded or issued in the United States and in foreign countries, and
may be denominated in any currency, including Euros and U.S. dollars. Neither the country in
which the securities are traded or issued, nor the currency in which the securities are
denominated, is relevant in determining whether the securities are reportable.
Reportable long-term securities include, but are not limited to:
Equity Interests
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Common stock;
Preferred stock (participating and nonparticipating preference shares);
Restricted stock;
Depositary receipts/shares (See Section II.G);
Equity interests in funds and equivalent investment vehicles (See Section II.G);
Limited partnership interests and equity interests in other entities that do not issue
shares/stock; and
All other equity interests, including privately placed interests and interests in private
equity companies and venture capital companies.
Long-term Debt Securities
Debt, registered and bearer, including bonds and notes (unstripped and stripped)
and bonds with multiple call options;
Convertible bonds and debt with attached warrants;
Zero-coupon debt and discount notes;
Index-linked debt securities (e.g., property index certificates);
Asset-backed securities (ABS);
Floating rate notes (FRN), such as perpetual notes (PRN), variable rate notes (VRN),
structured FRN, reverse FRN, collared FRN, step up recovery FR (SURF), and
range/corridor/accrual notes; and
All other long-term debt securities.

The following items/types of securities are specifically excluded:
Short-term securities (original maturity of one calendar year or less). Bank holding
companies, depository institutions and brokers and dealers report these on the TIC B series
forms and all other entities report these on TIC Form CQ-1. In addition, these are also
reported on the TIC SHCA and TIC SHLA Forms.
Bankers’ acceptances and trade acceptances
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Derivative contracts (including forward contracts to deliver securities) meeting the
definition of a derivative under ASC 815 (formerly FAS 133). (Reportable only on the TIC
Form D).
Loans and loan participation certificates
Letters of credit
Precious metals, (e.g., gold, silver) and currencies held in the reporter’s vaults for foreign
residents.
Bank deposits, including time deposits, short-term and long-term negotiable certificates
of deposit, and demand deposits
Annuities, including variable rate annuities
Direct Investments. The following ownership holdings known to be direct investments
should be excluded:
o When a U.S. resident owns a direct or indirect voting interest of 10% or more in a
foreign company; or a foreign resident owns a direct or indirect voting interest of
10% or more in a U.S. company.
o When U.S. resident (foreign resident) owns equity securities of a foreign
company (U.S. company) with which the U.S. resident (foreign resident) is in a
direct investment relationship.
Securities taken in as collateral and securities received in repurchase/resale (reverse
repurchase) agreements and security lending agreements. These transactions are
considered borrowings collateralized by the underlying securities. Banks and broker/dealers
should report the funds from these loans on the TIC B series forms; other entities should
report these on TIC Form CQ-1.

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G. HOW TO REPORT
Funds and Related Equity Holdings and Ownership
Ownership of shares/units of or other equity interests in funds and investment trusts should be
reported as equities. The determination of whether holdings or ownership of fund shares are a
U.S. or foreign security is based on the country in which the fund is legally established, not
based on the residence of the issuers of the securities the fund purchases or the type of
securities the fund purchases. For example, if a foreign resident owns equity interests in a fund
organized in New York, these interests are reportable U.S. securities, regardless of whether the
fund purchases foreign securities. Conversely, foreign-resident ownership of interests in
“offshore” or other foreign-resident funds that purchase U.S. securities should not be reported.
Funds include all investment vehicles that pool investors’ money and invest the pooled money
in one or more of a variety of assets. Funds include but are not limited to:
Mutual funds (including closed-end and open-end mutual funds);
Money market funds;
Investment trusts;
Index-linked funds;
Exchange traded funds (ETFs);
Common trust funds;
Private Equity Funds; and
Hedge funds.
For purposes of this report, the following funds and related equity ownership should be
reported:
1. Foreign-residents’ ownership of shares/units of funds and investment trusts legally
established in the United States (U.S.-resident funds)
2. Ownership of U.S. securities by foreign-resident funds
3. Hedge funds and other alternative investments
a) Investment advisors, managers or similar types of legal entities that create
master-feeder funds both outside and inside the U.S. should report any
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investments between the U.S. and foreign-resident affiliate funds that the
investment manager sets up; these investments are portfolio investments and
should be reported in the TIC system.

Example 1
A U.S. investment manager creates a Cayman Master Fund, a Cayman Feeder Fund
and a U.S. Feeder Fund. The investments between the U.S. manager and the Cayman
funds are direct investment since the investment manager controls them. However,
the investment that the U.S. feeder fund has in the Cayman Master Fund is portfolio
investment and should be reported in the TIC system. Therefore, purchases and sales
of the master fund shares by the U.S. feeder fund should be reported as transactions
in foreign equity by the U.S. feeder fund on the TIC S and the U.S. feeder fund’s
investments in the foreign master fund should be reported by the U.S. feeder fund as
ownership of foreign equity on the TIC SHC (A) and the TIC Form SLT report. If a U.S.
custodian holds the foreign security, the U.S. custodian would have the reporting
responsibility to report on the TIC SHC (A) and the TIC Form SLT report.

Example 2
A U.S. investment manager creates a U.S. Master Fund, a Cayman Feeder Fund, and a
U.S. Feeder Fund. As in the example 1, the investments between the U.S. manager
and the foreign feeder fund are direct investments. However, the investment that
the foreign feeder fund has in the U.S. master fund is portfolio investment and
should be reported in the TIC system. Purchases and sales of the master fund shares
by the foreign feeder fund should be reported on the TIC S as transactions in U.S.
equity by the U.S. master fund and the master fund should report the ownership of
their shares by the foreign feeder fund as the issuer of the domestic security on the
TIC SHL (A) and TIC Form SLT report. If a U.S. custodian holds the domestic security,
the U.S. custodian would have the reporting responsibility to report on the TIC SHL
(A) and TIC Form SLT report.
Example 3
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A foreign investment manager sets up a Cayman Master Fund, a Cayman Feeder
Fund, and a U.S. Feeder Fund. The investments between the foreign manager and
the U.S. feeder fund are direct investment since the foreign manager controls the
feeder fund. However, the investment that the U.S. feeder fund has in the foreign
master fund is portfolio investment and should be reported in the TIC system.
Purchases and sales of the master fund shares by the U.S. feeder fund should be
reported on the TIC S as transactions in foreign equity and the U.S. feeder fund’s
investments in the master fund should be reported by the U.S. feeder fund as
ownership of foreign equity on the TIC SHC (A) and TIC Form SLT report. If a U.S.
custodian holds the foreign security, the U.S. custodian would have the reporting
responsibility to report on the TIC SHC (A) and the TIC Form SLT report.

Example 4
A foreign investment manager creates a U.S. Master Fund, a Cayman Feeder Fund,
and a U.S. Feeder Fund. The investments between the foreign manager and the U.S.
feeder fund are direct investments. However, the investment that the foreign feeder
fund has in the U.S. master fund is portfolio investment and should be reported in
the TIC system. Purchases and sales of the master fund shares by the foreign feeder
fund should be reported on the TIC S as transactions in U.S. equity by the U.S. master
fund and the master fund should also report the ownership of their shares by the
foreign feeder funds as the issuer of the domestic security on the TIC SHL (A) and TIC
Form SLT report. If a U.S. custodian holds the domestic security, the U.S. custodian
would have the reporting responsibility to report on the TIC SHL (A) and TIC SLT
Form.

b) Exclude any investment between the investment manager or other entity that
formed the funds (as a general partner) and all the entities it creates. These are
direct investments and should be reported to the Bureau of Economic Analysis.

Note: The descriptions of the various examples are based on common
17

master/feeder fund structures. It is possible for there to be different types of
structures when creating these funds and they may be called different names by
some entities. Ultimately, if the investment is not direct investment, then it will
fall into the category of portfolio investment and needs to be reported as part of
the TIC system.

4. Fund ownership by Pension and Retirement Plans (including those of State and Local
governments, including municipalities)
A state pension plan holds foreign investments through (a) onshore funds (including
funds of hedge funds) and (b) offshore funds (including funds of hedge funds). For
the purposes of TIC, the requirement to report is based on the country in which the
fund is legally established.
(a) The investments in onshore U.S funds (including funds of hedge funds) are
investments in U.S.-resident entities and are therefore not reportable in TIC.
(b) The investments in offshore funds (including funds of hedge funds) are
investments in foreign-resident entities, and are therefore reportable in TIC. Only the
shares of the funds themselves are reportable (not their underlying investments),
and only if the pension investments are portfolio investment. Such pension
investments in off shore funds are reportable as equities in columns 12 and 13
opposite the countries of registration (residence) of the funds. If those investments
are direct investments, such as general partnership interests, then the investments
are reportable to the Bureau of Economic Analysis of the Department of Commerce.
If a U.S. custodian holds the foreign portfolio interests in the offshore funds on
behalf of the pension plans, the U.S. custodian would have the reporting
responsibility to report on the TIC SHC (A) and the TIC Form SLT report.

Limited Partnerships
Foreign-resident limited partner ownership interests in U.S.-resident limited partnerships and
U.S.-resident limited partner ownership interests in foreign-resident limited partnerships should
be reported as equities. Limited partners’ ownership interests usually do not carry voting rights;
18

therefore, all ownership interests, even those greater than 10%, are considered portfolio
interests, and are reportable in the TIC system.

General partnership ownership interests are always considered to be direct investments and
should be excluded from this report. These interests are reportable to the Bureau of Economic
Analysis of the Department of Commerce (see Direct Investment in the Glossary.)

Securities Involved In Repurchase and Securities Lending Arrangements
A repurchase agreement (repo) is an arrangement involving the sale of securities at a specified
price for cash with a commitment to repurchase the same or similar securities at a specified
price on a future date. A reverse repo is an agreement whereby a security is purchased at a
specified price with a commitment to resell the same or similar securities at a specified price on
a specified future date. Securities lending/borrowing arrangements are agreements whereby
the ownership of a security is transferred in return for collateral, usually another security or
cash, under condition that the security or similar security will revert to its original owner at a
future date. All of these arrangements, as well as buy/sell agreements, should be treated as
follows:
Securities sold under repurchase agreements or lent under securities lending
arrangements, or collateral provided, should be reported by the original owner of the
securities as if the securities were continuously held; that is, as if the repurchase or
security lending agreement did not exist.
Securities, including collateral, temporarily acquired under reverse repurchase or
borrowing or lending arrangements should not be reported.
However, if cash was temporarily received as collateral and was used to purchase
securities, those securities should be reported.
Depositary Receipts/ADRs/Shares
Depositary receipts/shares, including American depositary receipts (ADRs) or bearer depositary
19

receipts are certificates representing the ownership of securities issued by foreign residents.
Issuers of depositary receipts/shares should not report their holdings of the actual, underlying,
foreign securities. Only U.S.-residents’ holdings of the depositary receipts/shares should be
reported as holdings of foreign equities.

H. SUBMISSION OF REPORTS

Reporting Dates/Deadlines
Data on the TIC Form SLT report must be reported as of the last business day of the month (asof date). The TIC Form SLT report must be submitted to the Federal Reserve Bank no later than
the 23rd calendar day of the month following the report as-of date. If the due date of the report
falls on a weekend or holiday, the TIC Form SLT report should be submitted the following
business day.

Where to Report
Reporting entities that are banks, depository institutions, bank holding companies or financial
holding companies (BHCs/FHCs) should file their reports with the Federal Reserve Bank of the
District in which the reporting entity is located, unless instructed otherwise by their District
Federal Reserve Bank. All other reporting entities should file their reports with the Federal
Reserve Bank of New York (FRBNY), regardless of where they are located.

TIC Form SLT report can be submitted in the following manner:
1. Electronically
a)

Using the Federal Reserve System’s Internet Submission Electronic
Submission (IESUB) System.

IESUB is easy to use, secure and provides

confirmation of the receipt of the data and performs a number of validity
checks of your file format.
b) For more information on how to submit data using IESUB, contact the TIC SLT
staff at 212 720-6300 or 646 720-6300. Alternatively, additional information
20

and application to register for IESUB can be obtained at:
http://www.frbservices.org/centralbank/reportingcentral/iesub.html
2. Mail/Fax for those reporting to FRBNY
a) Reports can be mailed to:
Federal Reserve Bank of New York
Statistics Function, 4th Floor
33 Liberty Street
New York, New York 10045-0001
b) To fax reports, contact your TIC Form SLT report analyst for the appropriate
information.
Data may also be reported on computer printouts in the same format as the printed reports.
The Federal Reserve Bank of New York must approve proposed computer printouts in advance
of the first submission.

Signature Requirements
The cover page of the TIC Form SLT (which can be printed by the respondents from the TIC
website at http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/forms.aspx)
must be signed by a duly authorized officer of the reporting entity. For electronic filers, the
signature page must be retained by the reporter.

Reporter ID Number
Each reporting entity has been assigned a “RSSD-ID” number by the Federal Reserve System. To
ensure proper processing, this ID must be entered in the space provided on each form. If you
do not know your RSSD ID number, please call the Federal Reserve Bank to which you file.
Data Retention
Reports must be retained for three years from the date of submission.
Review of Data and Request for Revised Data
Data submitted on this Treasury International Capital (TIC) form are reviewed by the Federal
Reserve Bank. As a result of this review, the respondent may be asked by the Federal Reserve
21

Bank’s staff to provide supplemental information, including reasons for significant data changes
between reporting periods, or submit revisions as necessary.

III.

PART A AND B INSTRUCTIONS

If a reporting entity is a U.S.-resident issuer and/or end- investor and a U.S.-resident
custodian (as described in Section II.A), both Part A and Part B of the report form must be
completed. Part A (custodian reporting) should include only those long-term securities held
in custody by the reporting entity for unaffiliated U.S. investors. Part B (issuer and/or endinvestor reporting) should include all other long-term securities positions, including U.S.
securities that the reporting entity has issued and foreign securities the reporting entity holds
as an end-investor. Part B should also include all long-term securities that the reporting
entity has issued directly into the foreign market and are held directly by foreign residents,
that is, where neither a U.S.-resident custodian nor U.S.-resident central securities depository
is used by the reporting entity. If the reporting entity, or one of its consolidated U.S.
subsidiaries, is the custodian for securities it is reporting as an end-investor or as an issuer,
those securities should be reported only on Part B. If Part A or Part B is not applicable, place
a check mark on the line next to “Not Applicable”.

IV.

COLUMN BY COLUMN INSTRUCTIONS (PARTS A AND B)

Long-term U.S. Securities Owned by Foreign Residents (Columns 1 through 9)
The fair market value of long-term U.S. securities owned by foreign residents for portfolio
investment purposes should be reported according to the type of security and type of foreign
holder of record. Columns 1, 3, 5 and 7 should be used to report when the holders of record
are foreign official institutions (FOIs) and Columns 2, 4, 6 and 8 should be used to report when
the holders of record are not FOIs, i.e., all other foreigners.
By Type of Foreign Holder
Foreign Official Institutions (FOIs) (Columns 1, 3, 5 and 7)
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Report the fair market value of long-term U.S. securities owned by Foreign Official Institutions,
which include national governments, international and regional organizations, and sovereign
wealth funds. Please refer to the Department of the Treasury document, “Partial List of Selected
Foreign Institutions Classified as ‘Official’ For Purposes of Reporting on the Treasury
International Capital (TIC) Forms” (See Appendix C). FOIs include foreign government
embassies, consulates, and similar diplomatic offices that are located in the U.S. If you are
unsure of the FOI status of an entity not on the list, please contact your TIC Form SLT report
analyst.
All Other Foreigners (Columns 2, 4, 6 and 8)
Report the fair market value of long-term U.S. securities owned by all other foreign residents for
portfolio investment purposes. All other foreigners (non-FOIs) are all foreign-resident entities
that do not meet the definition of a Foreign Official Institution. These foreign-resident entities
include banks, securities brokers and dealers, departments and agencies of foreign state,
provincial, and local governments, foreign government-sponsored businesses, other foreign
financial and non-financial businesses and foreign individuals (natural persons). Include in these
columns holdings of foreign affiliated banking offices and nonbanking offices and subsidiaries of
the reporter.
By Type of Security
U.S. Treasury and Federal Financing Bank Bonds and Notes (Columns 1 and 2)
Report the fair value of long-term securities (bonds and notes) issued by the U.S. Department of
the Treasury and the Federal Financing Bank held for the accounts of foreign residents. Include
STRIPS, CATS, COUGARS, LIONS, TIGRS, and other instruments that are collateralized by the U.S.
Treasury and Federal Financing Bank issues.
Bonds of U.S. Government Corporations and Federally Sponsored Agencies (Columns 3 and 4)
Report the fair value of long-term securities (bonds, notes, debentures and asset-backed
securities) issued by or guaranteed by United States Government corporations or Federally23

sponsored agencies. A list of U.S. Agencies is available the Glossary.

U.S. Corporate and Other Bonds (Columns 5 and 6)
Report the fair value of long-term debt obligations of U.S. states and local governments,
including municipalities, and of private companies organized under the laws of the United States
and all other issuers of U.S. debt securities. Examples of long-term debt securities are bonds,
notes, debentures, asset-backed securities (mortgage-backed securities and all other assetbacked securities), covered bonds and perpetual bonds.
U.S. Equities (Columns 7 and 8)
Report the fair value of long-term equities, including common stock, preferred stock and fund
shares, issued by entities resident in the United States.
Foreign Securities Owned by U.S. Residents (Columns 10 through 13)
Ownership of long-term foreign securities by U.S. residents for portfolio investment purposes
should be reported according to the type of security.
Foreign Government Bonds (Column 10)
Report the fair value of long-term debt securities (bond, notes, debentures and asset-backed
securities) issued by foreign central governments, international and regional organizations, and
foreign official institutions.
Foreign Corporate and Other Bonds (Column 11)
Report the fair value of long-term securities issued by public and private corporations and
entities resident outside the United States. Include in this column securities issued by
departments and agencies of foreign state, provincial and local governments, and foreign
government-sponsored corporations.
24

Foreign Equities (Column 12)
Report fair value of long-term equities issued by public and private corporations and other
entities resident outside the United States. Include in this column holdings of American
Depositary Receipts (ADRs).

V.

INSTRUCTIONS FOR THE OF WHICH ROWS

Of Which: By Type of Security
Asset-Backed Securities (8999-1)
Report the portion of asset-backed securities (both mortgage-backed securities and all other
asset-backed securities) reported in Columns 3, 4, 5, 6, 9, 10, 11 and 13.
Fund Shares (8401-8)
Report the portion of fund shares and other portfolio equity interest in funds reported in
Columns 7, 8, 9, 12 and 13.
Of Which: By type of U.S. issuer
Report the portion of “U.S. Corporate and Other Bonds” (Columns 5 and 6), “U.S. Equities”
(Columns 7 and 8) and the “Grand Total” (Column 9) that were issued by U.S-resident
depository institutions, other financial organizations, non-financial organizations, and state and
local general governments and municipalities.
The type of issuer should be based on the primary business activities of the actual issuer of the
securities, not on the activities of the top U.S. company in the consolidated organization.
Depository Institutions (8264-3)
Report the portion of U.S. securities issued by U.S.-resident commercial banks and other
25

depository institutions that are held by or issued to foreign residents in columns 5, 6, 7, 8 and 9.
U.S.-resident depository institutions include: U.S. commercial banks (national banks; statechartered commercial banks; trust companies that perform commercial banking business); U.S.
branches and agencies of foreign banks; U.S. industrial banks; and banking Edge Act and
Agreement Corporations.
Other U.S. depository institutions include: Building or savings and loan associations; homestead
associations; cooperative banks; non-bank banks; credit unions; and mutual or stock savings
banks. Include securities issued by credit unions sponsored by state and local governments,
including municipalities.
Other Financial Organizations (8265-1)
Report the portion of U.S. securities issued by other U.S.-resident financial organizations in
columns 5, 6, 7, 8 and 9. This category covers U.S. securities issued by U.S.-resident financial
organizations, other than depository institutions, that are held by or issued to foreign residents.
Examples of other financial organizations include, but are not limited to, broker/dealers, bank
holding companies (BHCs), insurance corporations, financial holding companies (FHCs), money
market funds, pension funds, investment banks, private equity companies, credit card issuers,
hedge funds and trusts. Include securities issued by state, local and municipal pension,
retirement and insurance funds.
Non-Financial Organizations (8267-8)
Report the portion of U.S. securities issued by U.S.-resident non-financial organizations,
households, and nonprofit institutions serving households (NPISHs) that are held by or issued to
foreign residents in columns 5, 6, 7, 8 and 9. Non-financial organizations are organizations
whose principal activity is the production of goods or non-financial services. Examples include,
but are not limited to corporations, partnerships, enterprises and nonprofit institutions that
produce goods or non-financial services. Include securities issued by agencies and
instrumentalities of state, local and municipal governments, such as government-owned
utilities, hospitals, and parking authorities, that provide goods or non-financial services that are
26

not strictly governmental in nature in exchange for money.
State and Local General Government (8268-6)
Report the portion of U.S. securities issued by U.S.-resident state and local general governments
and municipalities that are held by or issued to foreign residents in columns 5, 6 and 9. These
securities include revenue, general obligation, and other debts that are their direct liabilities.
Exclude securities issued by state, local, or municipal agencies and instrumentalities that
perform functions that are not strictly governmental in nature. For example, exclude securities
issued by government-sponsored credit unions, utilities, hospitals and parking authorities that
provide financial or non-financial services in exchange for money. Also exclude securities
issued by state, local, or municipal pension, retirement and insurance funds.
Of Which: By type of U.S. Holder
Report the portion of foreign securities (Columns 10 through 13) that are owned by U.S.resident depository institutions, other financial organizations and non-financial organizations.
For Part B reporting, the reporting entity should provide the “By type of U.S. holder”
information for the parts of its consolidated entity that own foreign securities.
Depository Institutions (8166-3)
Report the portion of foreign securities owned by commercial banks and other depository
institutions organized under the laws of the United States in columns 10, 11, 12 and 13.
Commercial banks in the United States include: U.S. branches and agencies of foreign banks;
national banks; state-chartered commercial banks; trust companies that perform commercial
banking business; industrial banks; and banking Edge Act and Agreement Corporations.
Other depository institutions in the United States include: Building or savings and loan
associations; homestead associations; cooperative banks; non-bank banks; credit unions; and
mutual or stock savings banks. Include foreign securities owned by credit unions sponsored by
state and local governments and municipalities.
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Other Financial Organizations (8164-7)
Report the portion of foreign securities owned by other U.S.-resident financial organizations in
columns 10, 11, 12 and 13. This category covers foreign securities held by U.S.-resident financial
organizations other than U.S. depository institutions. Examples of other financial organizations
include, but are not limited to, broker/dealers, bank holding companies (BHCs), insurance
corporations, financial holding companies (FHCs), money market funds, public and private
pension funds, investment banks, private equity companies, credit card issuers, hedge funds and
trusts. Include foreign securities owned by state, local and municipal pension, retirement and
insurance funds.

Non-Financial Organizations (8165-5)
Report the portion of foreign securities owned by U.S.-resident non-financial organizations,
households, and nonprofit institutions serving households (NPISHs) in columns 10, 11, 12 and
13. Non-financial organizations are organizations whose principal activity is the production of
goods or non-financial services. Examples include, but are not limited to corporations,
partnerships, enterprises and nonprofit institutions that produce goods or non-financial
services. Include securities owned by agencies and instrumentalities of state, local and
municipal governments, such as government-owned utilities, hospitals, and parking authorities,
that provide goods or non-financial services that are not strictly governmental in nature in
exchange for money. Exclude foreign securities owned by general government (U.S. federal,
state and local governments and municipalities) from “non-financial organizations."

28

VI.

GLOSSARY

AFFILIATE - Two companies are affiliated when one owns greater than 10% but less than 50% of
the voting shares of the other, or when both are subsidiaries of a third company.
AMERICAN DEPOSITARY RECEIPT (ADR) - Negotiable certificates typically issued by a U.S.resident company and backed by shares of stock issued by a foreign corporation. The securities
are held in a custodial account, either at the issuing bank or by an agent. The ADR should be
reported, not the foreign securities held by the security depository.
AMERICAN DEPOSITARY SHARE (ADS) - Negotiable securities certificate issued in the United
States by transfer agents acting on behalf of foreign issuers, where the foreign issuers absorb
part or all of the handling costs involved. The ADS should be reported, not the foreign securities
held in custody.
ASSET-BACKED SECURITIES - Securitized interests in a pool of assets, which give the purchaser
a claim against the cash flows generated by the underlying assets. These pools may be derived
from mortgage loans, auto loans, credit card receivables, vehicle and equipment leases,
consumer loans, commercial loans or other assets. All asset-backed securities, including CMOs,
CLOs, CBOs, CDOs, and stripped asset-backed securities should be reported.
ASSET POOLS - a collection of assets (securities, real estate, currencies, commodities). Funds
and other investment vehicles usually invest in asset pools. Securities in asset pools may be
reportable.
BEARER BOND - Securities that are not registered in the name of their owner. The owner
collects interest and dividends upon presentation of detachable coupons to a bank or fiduciary
agent.
BEARER BOOK-ENTRY SECURITIES - See Bearer Global Notes/Certificates.
BEARER GLOBAL NOTES/CERTIFICATES - Bearer notes issued to one or more dealers that are
represented by a single global note in bearer form and are intended to be the backing for
registered securities issued by the central security depository. (See global certificates.) Bearer
global notes/certificates held at a foreign-resident central securities depository are reportable.
BRADY BONDS - Collateralized dollar-denominated bonds issued by a foreign government or
central bank in exchange for loans under the Brady Plan.
CENTRAL SECURITIES DEPOSITORY - A depository that holds securities, either in certificated or
uncertificated (dematerialized) form, to enable the transfer of ownership of securities.
Depositories are not necessarily custodians, since they may be responsible only for registering
and settling security transactions. The major U.S. central securities depository is Depository
Trust and Clearing Corporation (DTCC) and the major foreign- resident central securities

depositories are Euroclear and Clearstream.

CERTIFICATE OF DEPOSIT - See Negotiable Certificates of Deposit.
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - Mortgage-backed asset-backed securities,
which give the purchaser a claim against the cash flows generated by the underlying mortgages.
CMOs are usually characterized by a multi-tranche or multi-class serialized structure.
COMMERCIAL PAPER - A promissory note, either unsecured or backed by assets such as loans or
mortgages. They are usually sold at a discount and customarily having a fixed maturity of 270
days or less. (Commercial paper that is a short-term security is not reportable on the TIC SLT).
COMMINGLED ACCOUNT - An account in which the investment funds of individual clients are
pooled, with each client owning portions of the pooled account. U.S. securities held in foreignresident commingled accounts should be reported.
COMMON STOCK - A security representing equity ownership in a corporation. Common stock
claims are subordinate to the claims of bondholders, preferred stockholders, and general
creditors.
CONVERTIBLE BOND - A bond that can be exchanged at a set price for equity securities by the
holder under certain conditions.
COVERED BOND - Also known as Mortgage Bond or Pfandbriefe. A bond that is backed by loans,
typically mortgages, but does not give the purchaser a claim against the cash flows generated by
the underlying assets.
CUSTODIAN - A bank or other entity that manages or administers the custody or safekeeping of
securities (stock certificates, debt securities) or other assets for institutional or private investors.
DEPOSITARY RECEIPTS - See American Depositary Receipts (ADR). Related types of depositary
receipts, such as Global Depositary Receipts, that are backed by foreign securities.
DEPOSITORY INSTITUTION - Any financial institution that accepts deposits. Depository
institutions include government-sponsored credit unions. U.S. depository institutions include:
U.S. commercial banks (national banks, state-chartered commercial banks, trust companies that
perform commercial banking business), U.S. branches and agencies of foreign banks, U.S.
industrial banks, and banking Edge Act and Agreement Corporations, building or savings and
loan associations, homestead associations, cooperative banks, non-bank banks, credit unions,
and mutual or stock savings banks.
DERIVATIVE CONTRACT - Financial instrument or other contract with all three of the following
characteristics:

30

1. (a) One or more underlyings; (b) one or more notional amounts; and (c)
payment provisions. These terms determine the amount of the settlement or
settlements, and, in some cases, whether or not a settlement is required.
2. Requires no initial investment, or an initial investment that is much smaller than
would be required for other types of contracts that would be expected to have a
similar response to changes in market factors.
3. The terms require or permit net settlement, it can readily be settled net by a
means outside the contract, or it provides for delivery of an asset that puts the
recipient in a position not substantially different from net settlement.
Derivative contracts are excluded from this report. Embedded derivatives that are not
bifurcated from the host contract should be included in the value of the host contract.
However, if the embedded derivative is bifurcated from the host contract, the derivative
should be excluded from this report.
DEVELOPMENT BANKS - Entities owned by national governments and established to promote
economic development of sectors of the economy, such as trade, housing, agriculture, finance
and industry. Securities issued by foreign development banks should be reported.
DIRECT INVESTMENT - A direct investment relationship exists when a U.S. resident owns,
directly or indirectly, 10% or more of the voting securities of an incorporated foreign business
(or equivalent interest in an unincorporated foreign business, including a branch), or when a
foreign resident owns, directly or indirectly, 10% or more of the voting equity securities of an
incorporated U.S. business (or an equivalent interest in an unincorporated U.S. business,
including a branch). Limited partners in a partnership do not have voting rights and therefore
cannot have direct investment. If a direct investment relationship exists, then generally, all
financial positions and transactions between the firms are considered direct investment.
However, debt between U.S. – resident depository institutions and broker/dealers and affiliated
foreign-resident financial companies is not considered direct investment and should be reported
in the TIC system. U.S. residents in direct investment relationships should contact the Bureau of
Economic Analysis about reporting requirements. For U.S. direct investment abroad, call 202
606-5566, for foreign direct investment into the United States, call 202 606-5577.
END-INVESTOR - An entity that acquires or relinquishes securities for its own account (for
trading, investment, or any other purposes) or invests on behalf of others, including asset pools,
such as managers of mutual funds, managers of insurance company policyholder assets, and
pension fund managers. (See Section II.A for examples of end-investors.)
EQUITY, EQUITIES - Equity includes common stock, preferred stock, fund shares, and portfolio
investment in limited partnerships and hedge funds and funds of hedge funds. U.S. equity is
issued by entities resident in the United States. Foreign Equity is issued by public and private
corporations and entities resident outside the United States, including holdings of American
Depositary Receipts (ADRs).
31

FINANCIAL ORGANIZATION - Any organization that is principally engaged in providing financial
services to other organizations and households. This includes but is not limited to financial
intermediation services provided by banks and other depository institutions, brokerage services,
underwriting services, financial management services, credit origination services, credit card
services, insurance services, pension services, financial advisory services, custody services,
securities lending services, and electronic funds transfer services. Types of financial
organizations include but are not limited to depository institutions, broker/dealers, bank holding
companies (BHCs), insurance corporations, financial holding companies (FHCs), money market
funds, pension funds, investment banks, private equity companies, credit card issuers, hedge
funds and trusts. Financial organizations include government-sponsored credit unions and
pension funds.
FOREIGN BANK - A bank located in a foreign country and organized under the laws of that
country.
FOREIGN-RESIDENT (FOREIGN, FOREIGNER) - Any individual, corporation, or other entity legally
established outside of the United States, regardless of the actual center of economic activity of
the entity. Thus, a corporation incorporated outside of the United States is a foreign resident
even if it has no physical presence outside the United States. Foreigners/foreign residents
include:
1. Individuals, including citizens of the United States, residing outside of the United
States. (This includes individuals that have filed an IRS Form W-8, indicating that the
individual is a nonresident alien. However, if an IRS form is not available, the mailing
address can be used to determine residency.)
2. Any corporation or other entity legally established outside of the United States,
including branches, subsidiaries and other affiliates of U.S. entities located abroad.
3. Foreign governments and any subdivision, agency or instrumentality thereof, including
all foreign official nonbanking institutions, even if located in the United States (e.g., an
embassy, consulate, or other diplomatic establishment of a foreign country).
4. Official international or regional organizations or subordinate or affiliated agencies
thereof, created by treaty or convention between sovereign states, even if located in the
United States, including the International Bank for Reconstruction and Development
(IBRD or World Bank), the International Monetary Fund (IMF), and the United Nations
(UN). (See Appendix C for a list of international and regional organizations.)
FOREIGN SECURITIES - Securities issued by foreign-resident entities and depository receipts
issued by U.S.-resident entities that have underlying foreign securities. See Section II.F.
FUNDS - Pooled, separate and general investment accounts, including mutual funds (open and
closed end), country funds, exchange traded funds, unit investment trusts, collective-investment
32

trusts, hedge funds, and all other similarly pooled, commingled investment funds.
(See Section II.G.)
HOLDER OF SECURITIES - The holder of record is the owner of a company’s securities as
recorded on the books of the issuing company or its transfer agent as of a particular date. The
term “holder of securities” in the TIC instructions also refers to the custodian holding on behalf
of its clients. The content of the surrounding instructions should determine the appropriate
meaning. If there are questions, contact the Federal Reserve Bank.
HOUSEHOLD - An individual or group of individuals that share a dwelling, that is, live and sleep
in that dwelling most of the time, who pool some or all of their income and wealth, and who
consume certain types of goods collectively, mainly housing and food. Business activities
included in this sector are informal and do not have a separate legal status from the household.
Partnerships and proprietorships that have a separate legal identity from the household are
organizations that are not included in the household sector.

INDIVIDUALS - Natural persons.
INVESTMENT MANAGER - An entity responsible for communicating instructions regarding
account transactions on behalf of end-investors to ensure authorized transactions are
performed correctly and that the accounts are properly maintained and reported to the endinvestor. An entity’s status as an investment manager is not affected by the entity’s
responsibility, or lack thereof, for making investment decisions.
INVESTMENT TRUST SHARE - A share of a company bound by a trust deed issued in registered
form, formed to invest in specific types of securities. Shares in an investment trust can usually
be bought and sold only through the stock exchange. These are sometimes referred to as
‘closed-end’ funds. Foreign ownership of interests in a U.S. investment trust is reportable,
regardless of the types of securities held by the trust.
ISSUER - Legal entity that has the power to issue and distribute a security. Issuers include
corporations, municipalities, foreign and domestic governments and their agencies, and
investment trusts.
LOAN - A contract directly negotiated between a borrower and a lender evidencing an
obligation to repay borrowed funds according to specific the conditions, possibly including
payment of interest. Loans are not reportable on the TIC SLT.
LONG-TERM - No contractual maturity or an original maturity of more than one year. Long-term
securities are securities without a stated maturity date (such as equities) or with an original
term-to-maturity greater than one year.
MANAGERS OF FUNDS - Manager of a pool of money such as a mutual fund, pension fund,
insurance fund, or bank-pooled fund.
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MUNICIPAL BONDS - Debt securities issued by state and local governments. Municipal bonds
are reportable.
NATIONALIZED BANK - Institution owned by a foreign central government that is classified as a
bank in its own country. A nationalized bank is considered to be an official organization only if it
performs the functions of a central bank.
NEGOTIABLE CERTIFICATE OF DEPOSIT - Deposits evidenced by a negotiable instrument, or a
deposit in book entry form evidenced by a receipt or similar acknowledgement issued by a bank,
which provides on its face that the amount of such deposit is payable to the bearer or any
specified person. Negotiable certificates of deposit are not reportable on the TIC Form SLT
report.
NON-FINANCIAL ORGANIZATION - Any organization that is principally engaged in producing
goods or nonfinancial services. This sector excludes Federal, state, and local governments;
however it includes agencies and instrumentalities of governments such as utilities that produce
goods or non-financial services that are not strictly governmental in nature in exchange for
money.
NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS (NPISHs) - Institutions that are mainly
engaged in providing goods and services to households free of charge or at prices that are not
economically significant. Examples include but are not limited to charities, relief and aid
organizations and religious institutions.
PORTFOLIO INVESTMENT - Pursuant to 22 U.S.C. 3102, portfolio investment means any
international investment which is not direct investment. “International investment” means (a)
the ownership or control, directly or indirectly, by contractual commitment or otherwise, by
foreign persons of any interest in property in the United States, or of stock, other securities, or
short and long-term debt obligations of a United States person, and (b) the ownership or
control, directly or indirectly, by contractual commitment or otherwise, by United States
persons of any interest in property outside the United States, or of stock, other securities, or
short- and long-term debt obligations of a foreign person.

PREFERRED STOCK - Equity securities with preferences to the common stock of the issuer.
Preferred stock is usually entitled to dividends, stated as a fixed dollar amount or as a
percentage of par value, before any dividend can be paid on the common stock and has priority
over common shares in the event of liquidation.
REPURCHASE AGREEMENT (REPO) - A transaction involving the sale of financial assets by one
party to another, subject to an agreement for the seller to repurchase the assets at a specified
price on a future date. A resale agreement (also known as a reverse repurchase agreement) is
the same transaction viewed from the opposite perspective. Securities sold or purchased under
repurchase (resale) agreements should be reported as if the transaction had not occurred. (See
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Section II.G)
SECURITIES DEPOSITORY - An entity that holds securities, either in certificated or uncertificated
(dematerialized) form, to enable the transfer of ownership of securities. Depositories are not
necessarily custodians, since they may be responsible only for registering and settling security
transactions. The major U.S. depository is Depository Trust and Clearing Corporation (DTCC).
SECURITY - Any bill, note, bond, debenture, stock, or similar instrument that is commonly
referred to as a security. See Section II.F for a list of reportable long-term securities.
SETTLEMENT DATE - The date a security is delivered to the purchaser.
SETTLEMENT DATE ACCOUNTING - Under settlement date accounting the purchase and sale of
assets are not recorded until the settlement date. Settlement date accounting should be used
for purposes of this report.
SHARES or OTHER UNITS OF FUNDS - A share is a unit of equity ownership in a corporation;
mutual fund; or interest, normally represented by a certificate, in a general or limited
partnership. Ownership and transactions are sometimes made and priced in terms of other
units, such as a “unit” of a Unit Investment Trust. In the case of Exchange-Traded-Funds, large
investors often trade in “creation units”, e.g. a 50,000 share block, that are bought and sold “in
kind”.
SHORT-TERM - Original maturity of one year or less.
SINKING FUND DEBT or SINKER - A debt security on which the interest and principal payments
are made from a sinking fund. A sinking fund is money accumulated on a regular basis in a
separate custodial account that is used to retire a certain amount of the debt at specified
intervals and to pay interest on the remaining principal at specified intervals. Sinkers are
reportable. Although factors are associated with it that indicate the amount of unretired debt,
sinking fund debt is not asset-backed debt and should be excluded from the Of Which rows for
asset-backed securities.
STATE OR LOCAL GENERAL GOVERNMENT - The fifty states of the United States and the District
of Columbia, Puerto Rico and the U.S. territories and possessions, and their political
subdivisions, including counties, municipalities, school districts, irrigation districts, and drainage
and sewer districts. INCLUDES, but is not limited to the following activities that issue securities:
General municipal obligation bonds; Housing/Multi-family programs (housing finance);
Revenue bonds (includes general “tax-revenue” bonds, as well as bonds financed by revenue
from toll roads, bridges, transportation facilities); Industrial development bonds; General
economic development bonds; Bonds for building correctional facilities; School District
improvement bonds; Higher education bonds; Fire District improvement.
NOTE: It is common to refer to the “public sector”, which is composed of general government
plus the public enterprises. The latter are agencies and instrumentalities of such governments
that issue securities for the provision of goods/services that are not strictly governmental in
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nature in exchange for money. For purposes of TIC reporting, the public enterprises are
excluded from “general government” and are included in different sectors, as indicated below:
Depository Institutions sector -- State and local Credit Unions
Other Financial Organizations sector -- Pension funds, Retirement funds, Insurance (e.g.,
health insurance, unemployment insurance)
Non-Financial Organizations sector -- Utilities (water, electric, sewer, etc.),
Healthcare/Hospital bonds , Parking Authority (parking lots and garages)
STRIPS - An acronym for Separately Traded Registered Interest and Principal Securities. These
securities are created by "stripping" coupon payments from securities and treating these
coupons as separate securities from the principal.
STRIPPED DEBT SECURITIES - Debt securities that have been transformed from a principal
amount with periodic interest coupons into a series of zero-coupon securities with the range of
maturities matching the coupon payment dates and the redemption date of the principal
amount. Stripped asset-backed securities are considered asset-backed securities and should
be included in the ABS Of Which by type of security memo row.

STRUCTURED NOTE OR BOND - A financial instrument created specifically to meet the needs of
one or a small number of investors. Some of the more common structures include: step-up
bonds, index-amortizing notes, dual index notes, deleveraged bonds, range bonds, and inverse
floaters. Structured notes or bonds are reportable.
SUBCUSTODIAN - A custodian that has legal responsibility for the safekeeping of securities
entrusted to it by another custodian.

SUBORDINATED DEBT - A security evidencing debt that the holder agrees to rank after senior
creditors, but before shareholders, in a bankruptcy.
SUBSIDIARY - A company in which another company (parent) owns 50 percent or more of the
voting securities or an equivalent interest, or meets the consolidation requirement of U.S.
GAAP. A subsidiary is always, by definition, an affiliate, but subsidiary is the preferred term
when majority control exists.
TREASURY BILL - A common form of sovereign debt issued by many governments.
UNITED STATES - The fifty (50) States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the
following: American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll,
Kingman Reef, Midway Islands, Navassa Island, Palmyra Atoll, the U.S. Virgin Islands, and Wake
Island.

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UNIT INVESTMENT TRUST - A fixed portfolio of securities that are assembled by an underwriter/
sponsor and upon completion of the underwriting, are deposited with an independent trustee.
Unit investment trusts have a definite termination date, usually between 6 months and 10
years. (See Section II.G.)
U.S. GOVERNMENT AGENCY AND GOVERNMENT SPONSORED ENTERPRISE SECURITIES Securities that are guaranteed by or are the obligation of a federal agency, a federal
instrumentality, or a government sponsored enterprise. These securities include, but are not
limited to, mortgage-backed securities that were issued by, guaranteed by, or are the obligation
of a federal agency, a federal instrumentality, or a government sponsored enterprise, including
participation certificates, pass-through, CMOs, REMICS, and IO or PO issues. U.S. government
agency securities exclude privately issued mortgage-backed securities even if the underlying
collateral is government guaranteed.
A. U.S. Federal Government Agencies and Corporations include, but are not limited to:
Architect of the Capital
Commodity Credit Corporation (CCC)
Department of Agriculture, including former Rural Electrification Administration
(REA) and former Farmers Housing Administration (FMHA)
Department of Defense and Military Services (e.g. Air Force)
Department of Housing and Urban Development (HUD)
Department of Interior
Export-Import Bank of the United States (Ex-Im Bank)
Federal Communication Commission (FCC)
Farm Credit System Financial Assistance Corporation (FCSFAC)
Federal Deposit Insurance Corporation (FDIC), including FSLIC Resolution
Fund
Federal Housing Administration (FHA)
Financing Corporation (FICO)
General Services Administration (GSA)
Government National Mortgage Association (GNMA or Ginnie Mae)
Maritime Administration
National Archives and Records Administration (NARA)
National Consumer Cooperative Bank
Overseas Private Investment Corporation (OPIC)
Resolution Funding Corporation (REFCORP)
Rural Telephone Bank
Small Business Administration
Tennessee Valley Authority (TVA), including lease obligations
Washington Metropolitan Area Transit Authority (WMATA)
B. Government Sponsored Enterprises include, but are not limited to:
Farm Credit System:
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Agricultural Credit Bank (ACB)
Farm Credit Banks (FCB)
Federal Agricultural Mortgage Corporation (FAMC or Farmer Mac)
Federal Home Loan Banks (FHLB)
Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
Federal National Mortgage Association (FNMA or Fannie Mae)
U.S. PERSON - Pursuant to 22 U.S.C. 3102 a United States person is any individual, branch,
partnership, associated group, association, estate, trust, corporation, or other organization
(whether or not organized under the laws of any State), and any government (including a
foreign government, the United States Government, a State or local government, and any
agency, corporation, financial organization, or other entity or instrumentality thereof, including
a government-sponsored agency), who resides in the United States or is subject to the
jurisdiction of the United States.
U.S. RESIDENT - Any individual, corporation, or other entity incorporated or otherwise legally
established in the United States, including branches, subsidiaries and affiliates of foreign entities
located in the United States. The residency of an entity is determined by where a corporation or
subsidiary is incorporated and where a branch is licensed, not by the physical office of the
counterparty. Furthermore, U.S. Military Facilities, which are offices of United States banks
located in foreign countries that provide financial services to persons in the United States
Armed Forces stationed abroad, should be classified as U.S. banking offices for purposes of the
TIC reports. The term is used as a qualifier in the instructions, such as U.S.-RESIDENT
CUSTODIAN and U.S.-RESIDENT ISSUER.
U.S. TREASURY SECURITIES - Debt instruments that are direct obligations of the United States
Treasury. These instruments include Treasury bills that have an original maturity of one year or
less, Treasury notes that are intermediate-term (original maturity of 1-10 years), and Treasury
bonds that have an original maturity of 10 years or more.
ZERO-COUPON SECURITY - Bonds that do not provide interest payments. Zero-coupon bonds
usually have an issue price well below 100% of the face value with repayment on maturity at
face value or par. The investors’ return is the difference between the issue price and
redemption value.

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39

APPENDIX A
SAMPLE REPORTING TIC FORM SLT

This form is available at the following TIC website:

http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/forms.aspx

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APPENDIX B
DEPARTMENT OF THE TREASURY

GEOGRAPHICALCLASSIFICATION
CODES FOR COUNTRIES, AREAS & INTERNATIONAL/REGIONAL ORGANIZATIONS
TO BE USED FOR PURPOSES OF REPORTING ON
TREASURY INTERNATIONAL CAPITAL FORMS

The most recent version of this appendix is now a separate document.
A copy is on the TIC website at:

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/fctry-june2006.pdf

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APPENDIX C
DEPARTMENT OF THE TREASURY

CERTAIN FOREIGN INSTITUTIONS CLASSIFIED AS OFFICIAL,
A LIST TO BE USED ONLY FOR PURPOSES OF REPORTING ON
TREASURY INTERNATIONAL CAPITAL (TIC) FORMS

The most recent version of this appendix is now a separate document.
A copy is on the TIC website at:

http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/foihome.aspx

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