Treasury International Capital Form S,"Purchases and Sales of Long-term Securities by Foreigners"

INSTRUCTIONS FOR THE MONTHLY TEASURY INTERNATIONAL CAPITAL (TIC)
FORM S AND MEMORANDUM

PURCHASES AND SALES OF
LONG-TERM SECURITIES
BY FOREIGNERS

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
Revised June 2011

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INSTRUCTIONS FOR THE PREPARATION OF THE TREASURY INTERNATIONAL
CAPITAL (TIC) FORM S REPORT
MONTHLY REPORT OF PURCHASES AND SALES OF LONG-TERM SECURITIES BY
FOREIGNERS

Page
Table of Contents; Summary of revisions
I. Introduction
A. Purpose and Notice under Paperwork Reduction Act
B. Authority and Confidentiality Statement
C. Relationship to other TIC statistical reports

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II. General Instructions
A. Who Must Report
B. Consolidation Rules
C. Exemption Level and Frequency
D. Accounting Rules
E. What Must Be Reported
F. How to Report
G. Reporting the Location of Foreign Counterparties
ƒ Countries and Other Areas
ƒ Determining Residency11
H. Reportable Items
• New Issues; Redemptions of securities
• Fund shares; Limited partnerships
• Depositary receipts/shares
I. Identifying Counterparty or Customer
J. Reporting Responsibility
• Brokers & Dealers
• Underwriters
• End-investors
• Paying agents
• Custodians
• Fund managers & Investment managers
• Issuers of securities
• Electronic trading platforms
K. Submission of Reports
• Reporting Dates/Deadlines
• Signature Requirements
• Reporter Id Number
• Data Retention
• Review of Data and Request for Revised Data

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III.
IV.
V.
VI.

COLUMN-by-COLUMN Instructions
Memorandum Section
Glossary
Appendices
A. Geographical classification list
B. TIC Foreign Official Institutions list
C.
Reporting Requirements Flowcharts
(brokers, dealers, prime brokers, underwriters,
end-investors, paying agents, custodians, fund
managers, investment managers, and issuers)

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REVISIONS, Summary of:
-- February 2009 (revisions of instructions dated January 2001). The
following significant revisions were made: (a) On page 26, added text
covering the new row (8999-1) in the S-Form; (b) On page 17, added text
covering reports by prime brokers; (c) On page 8, changed text to require
that foreign currency transactions be converted to U.S. dollars as of the
settlement date; (d) On page 11, changed text to require that data
reporters, once the exemption level is exceeded, continue to report for the
remainder of the current calendar year; (e) to clarify reporting
responsibilities, reorganized text (page 5 and pages 17-24) and added
flowcharts (appendix III) from the point of view of eight different roles
that may exist in an organization; (f) On pages 12-13, clarified text on
determining residency; (g) On pages 15-16, clarified text on identifying
counterparty; (h) Made revisions in the glossary, including the direct
investment section; and (h) Made numerous other clarifications in the
instructions that did not change the substance. (Note: The paragraphs
containing revisions are marked with a vertical bar on the right-side of the
page.)

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I. INTRODUCTION

A. PURPOSE AND NOTICE UNDER PAPERWORK REDUCTION ACT
The purpose of TIC Form S is to gather timely and reliable
information from U.S.-resident entities on their monthly purchases
and sales of long-term securities in transactions directly with
foreign residents. Long-term securities are defined as those without
a stated maturity date (such as equities) or with an original termto-maturity in excess of one year. This information is needed for
preparation of the U.S. Balance of Payments Accounts and the U.S.
International Investment Position, as well as 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 S has been reviewed and approved by OMB under control number
1505-0001.
The Treasury Department has estimated the average burden
associated with the collection of information on each S form per
respondent, but this will vary widely across reporting institutions: an
overall average burden of 6.6 hours, based on 11.8 hours for each major
respondent and 5.9 hours for each other respondent. These estimates
include the time it will take to read the instructions, gather the
necessary facts, fill out the forms and keep records. Comments
regarding the accuracy of this burden estimate and suggestions for
reducing this burden should be directed to the Department of the
Treasury, Attention: Administrator, International Portfolio Investment
Data Reporting Systems, Room 5422 MT, Washington, D.C. 20220, and to
the Office of Management and Budget, Attention: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, D.C. 20503.

B. AUTHORITY AND CONFIDENTIALITY STATEMENT
This report is required by law (22 U.S.C. 286f; 22 U.S.C. 3103;
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 if an individual,
imprisonment for not more than one year, or both. Any officer,
director, employee, or agent of any corporation who knowingly
participates in such violation may, upon conviction, be punished by
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a like fine, imprisonment, or both (22 U.S.C. 3105 (a) and (b); 31
C.F.R. 128.4 (a) and (b)).
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 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, which will not reveal the amounts
reported by any individual respondent.
C. RELATIONSHIP TO 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
institutions 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 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 nonsecurities.
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.

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4. The TIC SLT form is filed by all U.S. - resident custodians,
issuers and end-investors.

On the TIC SLT form, these entities

report aggregate consolidated holdings of long-term U.S.
securities for the accounts of foreign residents, foreign
securities for the accounts of U.S. residents (their own or
their customers) and all securities issuances by the U.S. –
resident units of their entity to foreign residents that are not
held by a U.S. resident custodian.

5. To improve the accuracy of the TIC system and collect
information on positions in securities, detailed security-bysecurity 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 investors holding
securities without using U.S.-resident custodians are
required to report detailed security-by-security
information on their holdings of foreign securities. In
the years between these benchmark surveys, the largest of
these reporters are required to submit this security-bysecurity 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
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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).

II. GENERAL INSTRUCTIONS
A. . WHO MUST REPORT
TIC form S must be filed by United States resident entities who,
during the reporting month, conduct transactions (e.g. purchases,
sales, redemptions and new issues) in U.S. long-term securities
directly from or to foreign residents, and/or conduct transactions in
foreign long-term securities directly from or to foreign residents,
or have foreign-resident agents conduct transactions in these
securities on their own behalf, or on behalf of customers.
To minimize reporting burden and to allow for situations when an
investor does not know the direct counterparty, data are collected
from U.S. financial intermediaries. Transactions in which another
U.S.-resident entity acts as an intermediary for a foreign resident
should not be reported. U.S.-resident entities that provide only
custodial or settlement functions are not intermediaries for purposes
of this report.
U.S.-resident entities must file the TIC Form S report if
reportable transactions meet or exceed the exemption level.
Reportable transactions typically arise from the following roles:
1.
2.
3.
4.

brokers and dealers (including inter-dealer brokers, prime
brokers, and operators of electronic exchanges)
security underwriters
issuers of securities
end investors

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5.

6.
7.
8.

fund managers, investment managers, and sub-advisors
(including funds, fund of funds, mutual funds, and pension
funds)
custodians (including central securities depositories)
paying agents
electronic trading platforms

Please refer to the section on Reporting Responsibilities for
detailed reporting guidance. The following potential reporting
entities may be engaged in the roles listed above:

1. Banking organizations, including commercial banks, bank
holding companies (including financial holding companies),
United States branches and agencies of foreign banks, trust
companies, industrial banks, private or unincorporated banks,
banking Edge Act and Agreement corporations, New York State
Article XII corporations, mutual or stock savings or building
and loan associations, cooperative banks, credit unions,
homestead associations, and other similar depository
institutions
2. Nonbank holding companies
3. Securities brokers and dealers
4. Insurance companies
5. Investment managers, including mutual fund and pension fund
investment advisors or managers
6. Industrial and commercial enterprises
7. Other investors or nonbanking enterprises

B. CONSOLIDATION RULES/COMBINATION RULES
For purposes of this report, U.S.-resident entities should
consolidate all their subsidiaries, except for foreign-resident
offices and subsidiaries, in accordance with U.S. GAAP. U.S.-resident
entities, that are not 50 percent or more owned by another U.S.resident company, including Bank Holding Companies (BHCs) and
Financial Holding Companies (FHCs), should include all reportable
transactions for U.S.-resident parts of their organization, including
U.S.-resident offices and subsidiaries and international banking
facilities (IBFs). This includes all U.S.-resident parts except
securities brokers and dealers, U.S.-resident depository institutions
and U.S.-resident insurance underwriting entities, which should
submit separate reports that include their U.S.-resident offices and
subsidiaries. For example, a U.S.-resident BHC which owns a
depository institution, a securities broker/dealer and an insurance
underwriter should submit four separate reports, if each entity
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independently meets or exceeds the exemption level.
U.S. residents include entities located in the Commonwealth of
Puerto Rico and the U.S. territories. Please see Appendix X for the
complete definition of United States. It is the responsibility of the
U.S. parent entity to ensure that its report includes transactions
conducted by 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.
Likewise, transactions conducted by U.S.-resident
funds for which the reporting entity acts a manager/administrator
(such as managers of mutual funds and pension funds) should be
included.
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.

C. EXEMPTION LEVEL and REPORTING FREQUENCY
The TIC S Form exemption level is applied to the consolidated
reportable transactions of the reporting entity using the
consolidation rules above. An institution must file the TIC Form S
monthly if the total reportable transactions in purchases or sales of
long-term securities amount to $50 million or more during the
reporting month. If the level of transactions meet or exceed the
exemption level in any month, reporting is required for the remainder
of the calendar year regardless of the level of transactions in
subsequent months; and for both purchases and sales even if only one
meets or exceeds the exemption level.
D. ACCOUNTING RULES
Unless otherwise indicated TIC reports should be filed in
accordance with U.S. generally accepted accounting principles
(GAAP).
Transfer of Assets
A purchase or sale is the transfer of assets whereby the
seller surrenders control over those securities to the buyer for
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currency. The accounting for transfers of financial assets are
set forth by U.S. GAAP (FASB Statement No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities”,
(FAS 140)).
Report Gross Amounts
Report the gross amount of funds (or assets) transferred to
execute the transaction. Thus, purchase amounts reported should
reflect the cost of the securities acquired, including brokerage
charges, taxes, and any other expenses incurred by the
purchaser. Sales amounts reported should reflect the proceeds
of the sales less brokerage commissions and other applicable
charges.
For example, if a foreign resident located in France
purchases a $50 million U.S. Treasury note from a U.S.-resident
broker/dealer, and the total cost to the foreign-resident is $52
million ($50 million plus $2 million for fees), the U.S.resident broker/dealer should report $52 million on TIC Form S
opposite France in column 1 (Purchases of U.S. Treasury and
Financing Bank Bonds and Notes). Conversely, if a foreign
resident located in France sells a $100 million U.S. Treasury
note to a U.S.-resident broker/dealer and receives $98 million
from the sale ($100 million less $2 million in fees), the U.S.resident broker/dealer should report $98 million opposite France
on TIC Form S in column 2 (Sales of U.S. Treasury and Financing
Bank Bonds and Notes).
Use Settlement Date Reporting
Data should be reported using settlement date accounting.
Therefore, transactions should only be reported after securities
are delivered to the purchaser and payment is received by the
seller.
Valuation Rules
Amounts reported should reflect the cost at time-ofsettlement and should not be revalued to reflect price changes
during the month. Payments denominated in foreign currencies
should be converted to the U.S. dollar equivalent value using
the spot exchange rate at the close of business on the day of
settlement. Do not enter decimals or negative positions in any
cell.

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E. WHAT MUST BE REPORTED
Unless noted below, all transactions undertaken directly
with foreign residents involving equity securities and debt
securities with original maturities exceeding one year should be
reported. In addition, long-term securities received or delivered to
settle derivatives contracts should be reported as purchases or sales
by foreign residents.
Reportable transactions include purchases and sales of newly-issued
securities (primary market transactions), purchases and sales of
existing securities from other investors (secondary market
transactions), and transactions that result from the sinking fund
redemption, called, or maturing securities. These and other types of
transactions are discussed in detail later in these instructions.
U.S. securities are securities issued by U.S.-resident entities,
with the exception of those issued by U.S.-resident international
organizations (such as the IMF and the World Bank), which are classified
as foreign securities because these institutions legally have
extraterritorial status. U.S. securities are defined as above,
regardless of the country they are issued in, the currency they are
denominated in, the location of the exchange they trade on, or whether
they are guaranteed by institutions in other countries. U.S.-resident
entities include U.S.-resident branches and subsidiaries of foreign
companies.
Transactions of the following items/types should not be
reported:
1. Short-term securities (original term-to-maturity of one 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 SHC and TIC SHL
forms).
2. Certificates of deposit (both negotiable and non-negotiable),
deposit notes, bankers' acceptances, and participations in loans,
regardless of maturity date. (Bank holding companies, depository
institutions and brokers and dealers report these on the TIC Bseries forms and all other entities report these on TIC form
CQ-l). (In addition, certificates of deposit, and bankers’
acceptances are also reported on the TIC SHC and TIC SHL
forms).
3. Derivative contracts (including forward contracts to deliver
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securities). (Reportable only on the TIC D form). However,
long-term securities received or delivered to settle
derivatives contracts should be reported on TIC Form S as
purchases or sales by foreign residents.
4. Interest payments on securities and dividend distributions
5. Direct investments. The following transactions known to be
direct investment should be excluded:
•

Transactions that result in a U.S. resident gaining
a direct or indirect voting interest of 10% or more
in a foreign company or a foreign resident gaining a
direct or indirect voting interest of 10% or more in
a U.S. company.

•

All transactions of a U.S. resident (foreign
resident) in the equity securities of a foreign
company (U.S. company) with which the U.S. resident
(foreign resident) is in a direct investment
relationship.

6. Securities taken in or lent as collateral, securities involved
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
TIC B-series forms; other entities should report these on TIC
form CQ-1.

F. HOW TO REPORT
The reporting of a transaction (i.e., purchase or sale) should
be based on the viewpoint of the foreign resident. Purchases of longterm securities (for the reporters own account or for the account of
United States customers) should be recorded as sales by a foreign
resident; similarly, sales of long-term securities should be reported
as purchases by a foreign resident.
Transactions in long-term securities should be reported opposite
the country or geographic region of residence of the direct foreign
purchaser or seller of the securities. Thus, the purchase of a
Japanese security from a counter-party in Singapore should be reported
as a purchase versus Singapore, not Japan. Country attribution should
be based solely on the country of the direct foreign counter-party and
should not be based on either the currency in which the security is
denominated, the residence of a parent institution, the country of the
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issuer of the security, or the country of a guarantor (ultimate risk
basis).
Thus:
• purchases of U.S. long-term securities by foreign residents
should be reported as purchases in columns 1, 3, 5, or 7;
• sales of U.S. long-term securities by foreign residents
should be reported as sales in columns 2, 4, 6, or 8;
• purchases of foreign long-term securities by U.S. residents
should be reported as sales of foreign securities by foreign
residents in columns 10 or 12; and
• sales of foreign long-term securities by U.S. residents
should be reported as purchases of foreign securities by
foreign residents in columns 9 or 11.

G.

REPORTING THE LOCATION OF FOREIGN COUNTERPARTIES

Countries and Other Areas

Transactions with foreigners should be reported for the country or
geographical area in which the direct counterparty resides. Do not
report transactions based on the currency of denomination of the
instrument, the country of the parent institution 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. residents located outside the U.S. are foreign residents.
U.S.-resident branches of foreign banks are U.S. residents.

Determining

Residency

1. Determining the residence of counterparties
Counterparty residence 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 I)
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.
Exception
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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.)
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.

H. REPORTABLE ITEMS
REPORTING OF NEW ISSUES
1. Public Offerings (See the Reporting Responsibility
Section (L) for detailed reporting guidance).
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2. Private Offerings
Any depository institution, broker or dealer, or other
person resident in the United States acting in its own
behalf or on behalf of its customers as an intermediary
should report the private placement of: (1) U.S.
securities with foreign investors; or (2) foreign
securities with United States investors.

REPORTING REDEMPTIONS OF SECURITIES
Called or matured securities and sinking fund redemptions of
securities should be reported in the following manner (See the
Reporting Responsibility section for detailed reporting
guidance):
1. U.S. Securities
a. Banks, other depository institutions, brokers and
dealers, and other persons in the United States who
present U.S. securities for redemption to a U.S. entity
(i.e., paying agent) on behalf of foreign residents
should report these redemptions as sales by foreign
residents.
b. Banks, other depository institutions, brokers and dealers,
and other persons resident in the United States presenting
U.S. securities to a foreign entity (i.e., paying agent) for
their own account or for the account of their United States
customers should report the redemption as purchases by
foreign residents.
2. Foreign Securities
a. Depository institutions, brokers and dealers, and other
persons resident in the United States presenting foreign
securities to a U.S. entity (i.e., paying agent) in their
name, or in a nominee name, for foreign beneficiaries should
report the redemption as sales by foreign residents.
b. Depository institutions, brokers and dealers, bank holding
companies bank holding companies and other persons resident in
the United States presenting securities in their own name or
for the account of their United States customers to a foreign
entity (i.e., paying agent) should report the redemption as
purchases by foreign residents.
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REPORTING OF FUND SHARES
The determination of whether fund shares are a U.S.
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 and sells. For example, if a
foreign resident purchases or sells shares in a fund organized
in the United States, these shares are reportable U.S.
securities, regardless of whether or not the fund purchases
foreign securities. Reportable fund shares transactions should
be reported as domestic or foreign equity regardless of the
investment portfolio of the fund (e.g., purchases of shares in a
U.S. fund investing in U.S. and foreign bonds should be reported
as purchases of U.S. equity).
In addition, the fund’s purchases and sales to/from
foreign-resident entities of the underlying securities for the
fund’s own portfolio are also reportable. When this occurs, the
transactions should be reported according to the type of
securities purchased or sold.
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; and
Hedge funds

For purposes of this report, the following funds and
related equity transactions should be reported:
1. Foreign-residents’ transactions of shares/units of funds
and investment trusts legally established in the United
States (U.S.-resident funds)
2. Transactions of U.S. securities by foreign-resident funds
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3. Hedge funds and other alternative investments
a) Investment advisors, managers or similar types of
legal entities that create

master and feeder funds

both outside and inside the U.S. should report

any

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 SLT forms.

If a custodian holds the foreign

security, the U.S. custodian would have the reporting
responsibility to report on the TIC SHC (A) and the TIC
SLT forms.

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
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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 SLT forms.

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 forms.

Example 3
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 SLT forms.
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If a U.S. custodian

June 2011

holds the foreign security, the U.S. custodian would have
the reporting responsibility to report on the TIC SHC (A)
and the TIC SLT forms.

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 SLT forms.
holds the domestic security,

If a U.S. custodian

the U.S. custodian would

have the reporting responsibility to report on the TIC
SHL (A) and TIC SLT forms.

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 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.
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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.

REPORTING OF LIMITED PARTNERSHIPS
Transactions in 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 equity. Limited
partners’ ownership interests do not carry voting rights;
therefore, all ownership interests, even those greater than 10%
are reportable.
General partnership ownership interests are always
considered to be direct investments and should be excluded from
this report.

REPORTING OF DEPOSITARY RECEIPTS/SHARES
Depositary receipts/shares, including American Depositary
Receipts (ADRs), Global Depositary Receipts (GDRs) or bearer
depositary receipts are certificates representing ownership of
securities issued by foreign residents. Therefore, transactions
of ADRs should be reported as purchases and sales of foreign
equity if a U.S. entity purchases or sells ADRs to/from foreignresident entities. In addition, depositary receipts can be
created or redeemed by placing an order for the underlying
security with an (affiliated or unaffiliated) foreign entity
(e.g., broker), with delivery of the underlying to be made to a
foreign custodian. When this occurs, the foreign entity (not
the depositary) should be reported as the counterparty.

I. IDENTIFYING COUNTERPARTY OR CUSTOMER
1. Unknown Counterparty or Customer
a. Exchanges - If a transaction is carried out on an
exchange in a manner in which the counterparty is not
known, the exchange is deemed the counterparty and as
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such the residence of the exchange should be treated as
the residence of the counterparty.
b. Foreign Fund Managers or Sub Advisors - If an endinvestor or fund manager TIC reporter uses a foreign fund
manager (or sub-advisor), the TIC reporter often will not
know the counterparty or even the broker used. In that
case, the foreign fund manager or sub-advisor is deemed
the counterparty and as such the residence of the foreign
fund manager or sub-advisor should be used as the
residence of the counterparty.
2. Uncertain Counterparty or Customer
In a few cases, it may not be obvious which entity
should be designated as the counterparty (or even a
customer). Some common situations and rules to apply
follow:
a. Intermediary – If primary and secondary market
transactions involving long-term securities are conducted
through an intermediary (A third party (affiliated or
unaffiliated) who assists in facilitating a transaction
between two other parties.) the counterparty is the
intermediary, even if the ultimate customer and its
residence are known.
For example, a U.S. investment advisor instructs a
U.S. securities broker and dealer to purchase longterm securities on behalf of the investment advisor’s
U.S. clients. The U.S. securities dealer and broker
(acting as a financial intermediary) purchases long-term
securities directly from a foreign resident and reports
these transactions on the TIC S.
b. New Securities
(1) If a TIC reporter is a lead underwriter,
the issuing company is a customer and the
other members of the syndicate (and all
direct purchasers of the security) are
counterparties.
(2) If the TIC reporter is a non-lead member of
an underwriting syndicate, the lead
underwriter is the counterparty.
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c. Redemptions - The counterparty to a redemption is the
entity for which the delivery is made. Therefore, the
counterparty is the issuer, if delivery is made directly
to the issuer. Otherwise the counterparty is the paying
agent (or other party to which delivery is made).

J. REPORTING RESPONSIBILITY (See Appendix III for Reporting
Responsibility Flow Charts)
1. U.S.-Resident Brokers and Dealers

a. Dealers
U.S.-resident dealers should report all transactions
between their U.S. offices and foreign residents
(including their own foreign offices).
b. Brokers
U.S.-resident brokers should report transactions they
execute between:
(1) their U.S.-resident clients (including their own
U.S. offices) and foreign-resident
brokers (or other foreign entities, including
paying agents); and
(2) their foreign-resident clients (including
their own foreign offices) and U.S.resident brokers (or other U.S. entities,
including paying agents).
If no other broker is involved and the U.S.-resident
broker does not know the identity of the entity
acquiring/relinquishing ownership of the security,
the U.S.-resident broker may treat an entity that
does not take ownership of the security (such as a
foreign-resident agent, investment manager, subadvisor, trustee, settlement agent, or custodian) as
the other counterparty to the transaction.
If a U.S.-resident prime broker is also involved in
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the transaction, then the U.S.-resident executing
broker should not report the transaction. An
executing broker is a broker that finalizes and
processes a transaction on behalf of a broker dealer
client.
c. Prime Brokers
U.S.-resident prime brokers should report transactions
with a foreign entity when:
(1) their foreign-resident clients (including their
own foreign offices) employ a different U.S.resident broker to execute the transaction; and
(2) their foreign-resident clients (including their
own foreign offices) employ a foreign-resident
broker to execute the transaction.

2. U.S.-Resident Underwriters
U.S.-residents that underwrite long-term securities have
the following TIC S reporting requirements:
a. Securities Issued by U.S.-Residents
The U.S.-resident lead underwriter should report as a
purchase the amount taken by foreign- resident direct
contacts opposite the country of the direct contact. The
direct contact would be one of the following:
(1) Most commonly, the foreign-resident member(s) of
an underwriting group.
(2) A foreign-resident broker or dealer (including
an own foreign office).
(3) If none of the above exists, foreign-resident
end-investor, stock exchange specialist, paying
agent, fund or other foreign-resident entity
that directly acquires ownership of the security
from the U.S.-resident lead underwriter.
The U.S.-resident members of an underwriting group led by
a U.S. resident underwriter should report as a foreign
purchase the amount of the issue sold to their foreignTreasury TIC Form S instructions
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resident direct contacts.
U.S.-resident members of an underwriting group led by a
foreign-resident underwriter should report: (1) as a sale
the entire amount taken from the foreign-resident lead
underwriter; and (2) as a purchase amounts sold to
foreign residents.
b. Securities Issued by Foreign Residents
The U.S.-resident lead underwriter of a foreign security
should report as a sale the entire amount taken for
distribution opposite the country of the foreign-resident
issuer.
A U.S.-resident member of a foreign-led syndicate,
including the U.S.-resident office of a foreign-resident
lead underwriter, should report as a sale the entire
amount it has taken for distribution in the United
States, opposite the country of the foreign-resident lead
underwriter (not the issuer).
In addition, if any U.S.-resident member of an
underwriting group (U.S. led or foreign led) takes
possession of a foreign security and sells it to a
foreign resident, it should report as a purchase the
amount sold to the foreign resident opposite the country
of the foreign-resident direct contact. In this case,
the direct contact would be one of the following:
(1) The foreign-resident broker or dealer (including
an own foreign office), which purchases the
security.
(2) The foreign-resident end-investor, stock
exchange specialist, fund (or its investment
manager), or other entity that directly acquires
ownership of the security.

3.

U.S.-Resident End-Investors
The TIC S system is designed to minimize reporting by endinvestors, by requiring that certain U.S.-resident financial
intermediaries provide the majority of the reporting.
These intermediaries are brokers, dealers, investment

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managers, custodians, and paying agents.
a. Purchases and Sales of Securities
U.S.-resident end-investors are required to report
purchases and sales of securities if they deal “directly”
with a foreign resident (i.e., they do not use a U.S.resident broker or dealer (including an underwriter) or a
U.S.-resident investment manager). Examples of the
direct acquisition or sale of securities would include:
(1) The purchase or sale of a U.S. or foreign
security (including a new issue) when the U.S.resident end-investor interacts directly with a
foreign-resident securities broker or dealer,
foreign-resident issuer, a foreign-resident
underwriter, or another foreign-resident without
the use of a U.S. resident/foreign-resident
broker, dealer, or investment manager.
All such transactions are reportable, including those
initiated by a foreign-resident investment manager on
behalf of a U.S.-resident end-investor.
b. Redemption of Securities
U.S.-resident end-investors are required to report
redemptions of U.S. or foreign securities as foreignresident purchases if they present securities directly to
a foreign resident, but only if the security is not
presented by a U.S.-resident custodian, through a U.S.resident investment manager or a U.S.-resident broker.

4.

U.S.-Resident Paying Agents
For TIC S reporting purposes, U.S.-resident paying agents
should treat redemptions of securities as if they (a U.S.
resident) acquired the security and then re-sold it to the
issuer. U.S.-resident paying agents have the following two
reporting responsibilities:
a. When a foreign resident presents a security (U.S.-issued
or foreign-issued) for redemption, the U.S.-resident
paying agent should report the event as a sale by a
foreign resident. Often the paying agent will receive a
security presented by a third party. If the paying agent

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knows the identity of the investor, the residence of the
investor should determine whether the redemption should
be reported. More commonly, the paying agent will not
have this information and will have to determine
residency based upon the residence of the third party.
b. When a U.S. resident presents for redemption a security
issued by a foreign resident (a “foreign security”), the
U.S.-resident paying agent should report a purchase by
the foreign issuer of the entire amount the U.S.-resident
paying agent has redeemed on the issuer’s behalf. [Note:
if these foreign securities are presented to the U.S.resident paying agent by a U.S.-resident intermediary
that was in fact acting on behalf of a foreign resident,
then the U.S.-resident intermediary should report this
transaction as a sale of foreign securities by foreign
residents to offset purchase reported by the U.S.resident paying agent. See Brokers/Dealers section
above.]

5. U.S.-Resident Custodians
In general, U.S.-resident custodians do not report
transactions on TIC S. The TIC S system is designed to
minimize reporting by custodians by requiring that
certain other financial intermediaries provide the
majority of the reporting. These usually are brokers,
dealers, issuers and paying agents.
Two exceptions are described below. In both cases, the
reporting requirements are as if the U.S.-resident
custodian took possession of the security, whether it
actually does or not.
a. Redemptions from the Accounts of U.S. Residents
U.S.-resident custodians that present securities for
redemption to a foreign-resident intermediary such as a
foreign-resident paying agent, foreign-resident broker,
foreign-resident dealer or a foreign-resident issuer from
the accounts of U.S. residents (including U.S.-resident
custodians and sub-custodians) should report the
redemptions as foreign-resident purchases of securities.
b. Redemptions from the Accounts of Foreign Residents
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U.S.-resident custodians that present securities for
redemption to a U.S.-resident financial intermediary such
as a U.S.-resident paying agent, U.S.-resident broker,
U.S.-resident dealer or a U.S.-resident issuer from the
accounts of foreign residents (including foreign-resident
custodians and sub-custodians) should report the
redemptions as foreign-resident sales of securities, but
only if the U.S.-resident custodian does “not fully
disclose” the account holder.
To “not fully disclose” means that the U.S.-resident
intermediary has not been provided with the identity of
the foreign-resident account holder and therefore only
knows an alias, omnibus account, or the U.S.-resident
custodian’s identity.

6.

U.S.-Resident Fund Managers and Investment Managers
The purchase and sale of fund equity interests and the
purchase and sale of long-term securities for a fund’s or
other customer’s portfolio are both transactions which are
potentially reportable on the TIC Form S.
The TIC S system is designed to minimize reporting by fund
managers and investment managers by requiring that certain
other financial intermediaries provide the majority of the
reporting. These usually are brokers, dealers, issuers,
custodians, and paying agents. TIC S reporting
responsibilities are not affected by the fund manager’s and
investment manager’s responsibility, or lack thereof, for
making investment decisions.
a. Purchases and Sales of Securities
U.S.-resident fund managers and investment managers
should report all purchases and sales they make for the
accounts of their U.S.-resident funds and other customers
that are:
(1) placed through a foreign-resident broker,
dealer, or underwriter; or
(2) conducted with a foreign resident,
including foreign-resident fund managers,
investment advisors, sub-advisors, and endinvestors without the use of a U.S.-resident

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broker, dealer, or underwriter.
U.S.-resident fund managers and investment managers
should also report purchases and sales made for the
accounts of their foreign-resident funds and other
customers that are placed through U.S.-resident brokers,
dealers, or underwriters, if the identity of the account
holder is “not fully disclosed” to the U.S.-resident
broker, dealer or underwriter.
To “not fully disclose” means that the U.S.-resident
broker, dealer, or underwriter has not been provided with
the identity of the foreign-resident account holder and
therefore only knows an alias, omnibus account, or the
U.S.-resident fund manager’s or investment manager’s
identity.
b. Redemptions of Securities
U.S.-resident fund managers and investment managers
should report all redemptions of securities from the
accounts of their U.S.-resident customers that are
presented to a foreign-resident intermediary such as a
foreign-paying agent, foreign-resident broker, foreignresident dealer or foreign-resident issuer without the
use of a U.S.-resident custodian.
U.S.-resident fund managers and investment managers
should also report redemptions from the accounts of their
foreign-resident customers that are presented to a U.S.resident intermediary such as a U.S.-resident paying
agent, U.S.-resident broker, U.S.-resident dealer or
U.S.-resident issuer, if the foreign-resident account
holder is not fully disclosed.

7. U.S.-Resident Issuers of Securities
U.S. residents that issue long-term debt or equity securities
(including limited partnership interests) have the following
TIC S reporting requirements:
a. Initial Offerings
Securities issued by a U.S.-resident entity that are
purchased by foreign residents are generally reported by
the U.S.-resident lead underwriter. However, U.S.Treasury TIC Form S instructions
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June 2011

resident issuers of securities have TIC S reporting
responsibilities in two cases:
(1) If a foreign-resident lead underwriter is
used (either as a sole lead or as a co-lead
underwriter), the issuer should report, as a
purchase by a foreign resident, all securities
acquired by the foreign-resident lead
underwriter.
(2) If a U.S.-resident entity issues
securities without an underwriter, the U.S.resident issuer is required to report the dollar
amount of the new issue acquired directly by
foreign residents (including foreign-resident
end-investors, foreign-resident securities
depositories, foreign brokers, foreign dealers
and foreign investment managers).
b. Redemptions
U.S.-resident issuers are required to report redemptions
of their securities only in two cases:
(1) When a foreign-resident paying agent is
used, a U.S.-resident issuer should report a
“sale” of the securities by the foreign-resident
paying agent, opposite the country of the
foreign-resident paying agent.
(2) When no paying agent is used, the U.S.resident issuer should report a “sale” of the
securities directly by any foreign residents
(including foreign-resident end-investors,
custodians, securities depositories, brokers,
dealers and investment managers) that present
the securities directly to the U.S.-resident
issuer for payment.

8.

Electronic Trading Platforms
U.S. electronic trading platforms grant buyers and sellers
access to shares that can be traded anonymously. U.S.
electronic trading platforms should report transactions they
arrange, if one of the counterparties is a foreign resident
and the other counterparty is a U.S.-resident (See 1.b,

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Brokers, for additional detail). Reporting responsibility
would still exist if the electronic trading platform acts as
an agent routing transactions to foreign executing brokers or
exchanges.

K. SUBMISSION OF REPORTS
Reporting Dates/Deadlines
TIC form S is due no later than 15 calendar days following the
last business day of the month (as-of date). If the due date of the
report falls on a weekend or holiday, form S is due the following
business day.
Depository institutions and bank holding companies should file
their reports with the Federal Reserve Bank of the District in which
they are located, unless instructed otherwise by their district
Federal Reserve Bank. All other entities should file their reports
with the Federal Reserve Bank of New York, regardless of where they
are located. Reports can be submitted in the following manner:

ƒ

Electronically
o Data may be submitted electronically using the Federal
Reserve System’s Internet Electronic Submission (IESUB)
system.
o For more information on IESUB, log on to
www.reportingandreserves.org/iesub.html or call your
Federal Reserve Bank contact for TIC reporting.

ƒ

Mail/Fax
o Reports filed with the Federal Reserve Bank of New York
can be mailed to:
Federal Reserve Bank of New York
Statistics Function, 4th Floor
33 Liberty Street
New York, NY 10045-0001
Or faxed to: 212 720-8028 or 212 720-8216

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o To mail or fax reports with other Reserve Banks contact
your local TIC reporting Federal Reserve Bank liaison
for the appropriate information.
Data may also be reported on computer printouts in the same format
as the printed reports. The Federal Reserve Bank to which the report
is to be filed must approve proposed computer printouts in advance of
the first submission.
Signature Requirements
The cover page of the TIC S form (which can be printed by the
respondents from the TIC website at
http://www.treas.gov/tic/forms.shtml must be signed by a duly
authorized officer of the institution. For electronic filers, the
signature page should be retained by the reporter.
TIC 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 where
you submit your form.
Data Retention Period
Reports must be retained for 3 years from the date of
submission.
Review of Data and Request for Revised Data
Data submitted on the Treasury International Capital forms are
reviewed by Federal Reserve System staff. As a result of these review
and editing procedures, the respondent may be asked by Reserve Bank
staff to explain unusual changes or submit revisions as necessary.

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III. COLUMN-by-COLUMN INSTRUCTIONS
Securities should be classified in each column based on the type of
security and whether it is a purchase by a foreign resident or a sale by a
foreign resident.
Purchases and Sales of Domestic Securities
Columns 1 and 2 -- Report purchases (column 1) and sales (column 2) by
foreign residents of long-term debt securities (bonds and notes) issued
by the U.S. Department of the Treasury and the Federal Financing Bank (See
glossary entry for U.S. Treasury securities). Include STRIPS, CATS,
COUGARS, LIONS, TIGRS, and other instruments that are collateralized by
U.S. Treasury and Federal Financing Bank issues.
Columns 3 and 4 -- Report purchases (column 3) and sales (column 4) by
foreign residents of long-term debt securities (bonds, notes, debentures
and asset-backed securities(mortgage-backed securities and all other
asset-backed securities)) issued by United States Government corporations
or Federally-Sponsored Agencies (See glossary entity for United States
Government Agency securities).
Columns 5 and 6 -- Report purchases (column 5) and sales (column 6) by
foreign residents of long-term debt obligations of U.S. states and
municipalities and of private corporations located in the United States and
all other issuers of U.S. debt securities not included in columns 1 through
4. 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.
Columns 7 and 8 -- Report purchases (column 7) and sales (column 8) by
foreign residents of equity securities, including common stock, preferred
stock and fund shares, issued by entities resident in the United
States. Examples of equity securities are common stock,
preferred stock and investment company shares (including openend mutual funds, closed-end funds, and exchange-traded funds
(such as SPDRS).
Purchases and Sales of Foreign Securities
Columns 9 and 10 -- Report purchases (column 9) and sales (column 10)
by foreign residents of long-term debt securities (bonds, notes,
debentures and asset-backed securities) issued by foreign governments,
international and regional organizations, foreign official institutions, and
public and private corporations resident outside the United States. Note
that purchases and sales of long-term debt securities issued by
international and regional organizations (such as the IMF and the IBRD) are
included, even if these institutions are located in the United States.
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Columns 11 and 12 -- Report purchases (column 11) and sales (column
12) by foreign residents of equity issued by public and private
corporations and entities resident outside the United States. Include in
these columns purchases and sales of American Depositary Receipts (ADRs).
Of Which Item:

Asset-Backed Securities (8999-1)

Report the portion of transactions in asset-backed securities
(both mortgage-backed securities and all other asset-backed securities)
reported in columns (3) through (6) and columns (9) and (10) in the
“Grand Total 9999-6” row.

IV. INSTRUCTIONS FOR THE MEMORANDUM SECTION
Report in the Memorandum section that portion of the transactions in
U.S. securities reported in columns (1) through (8) above undertaken for
the accounts of foreign official institutions and for the accounts of
international and regional organizations. The "List of Certain Foreign
Institutions Classified as 'Official' For Purposes of Reporting on the
Treasury International Capital (TIC) Forms" prepared by the Department of
the Treasury should be used to determine the classification of foreign
official accounts (See Appendix II). That foreign official list
is available from the Treasury International Capital (TIC)
website, at: www.treas.gov/tic/foihome. For reporting
international and regional organizations, those institutions
have a separate set of geographic codes distinct from those used
to report other transactions, and those codes are available at:
www.treas.gov/tic/fctry-june2006.pdf.
Do not list the foreign official country code for which the
transactions were effected unless the account has an assigned code number.
Codes for the country or geographical area in which each foreign official
institution should be reported are in the "Geographical Classification"
contained in Appendix I. These are the same as the codes that appear on
Form S, with the exception of the "Other" categories, such as "Other
Europe," and the "International and Regional" categories. For countries or
institutions within these categories, the more detailed codes contained in
the "Geographical Classification" should be used.
Of Which FOI Item:

Asset-Backed Securities (8999-1)

Report the portion of transactions in asset-backed securities
(both mortgage-backed securities and all other asset-backed securities)
reported in columns (3) through (6) in the “Grand Total 9999-6” row
above.
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V. 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.
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 MBSs,
CMOs, CLOs, CBOs, CDOs, and all other asset-backed securities are reportable on TIC Form
S in columns 3 through 6 (if the issuer is domestic) and columns 9 and 10 (if the issuer is
foreign).
Brady Bonds – Collateralized dollar-denominated bonds issued by a foreign government or
central bank in exchange for loans under the Brady Plan. Brady Bonds are considered longterm debt securities and should be reported on TIC Form S.
Brokers– securities brokers are entities that regularly engage in effecting securities
transactions for others.
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 have a fixed maturity of 270
days or less. Holdings of commercial paper should be reported on the TIC CQ-1 Form at face
value, as a short-term security, unless held for your account by a U.S.-resident depository
institution or other U.S.-resident custodian, in which case the U.S. resident depository institution
or U.S. resident custodian would report these holdings of commercial paper on the TIC B Forms
at face value, as a short-term security.
Common Stock – Units of ownership of a public corporation. Owners typically are entitled to
vote on the selection of directors and other important matters as well as to receive dividends on
their holdings. U.S. resident entities that engage in primary or secondary market transactions
involving common stock with foreign residents should report these transactions on TIC Form S.
Convertible Securities – Corporate securities (usually preferred shares or bonds) that are
exchangeable for a set number of another form (usually common shares) at a pre-stated price.
U.S. resident entities that engage in primary or secondary market transactions in long-term
convertible securities with foreign residents should report these transactions on TIC Form S
based on the original instrument; not based on the instrument the security is converted to.
Custodian – A bank or other organization that manages or administers the custody or
safekeeping of stock certificates, debt securities, or other assets for institutional and private
investors.
Dealers – A securities dealer is an entity that engages in buying securities for its own account.
However, the definition of securities dealers excludes depository institutions and other
institutions acting in a fiduciary capacity. See the Securities Exchange Act for a list of the
activities that constitutes a dealer.
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Depositary Receipts (DR) – Negotiable certificates evidencing the deposit of publicly traded
securities. Depositary Receipts can be listed on an exchange to ease trading in markets
outside that of the issuing corporation. Depositary receipts are available in various forms,
including American (ADR), which represent shares of a non-U.S. corporation and are
considered foreign equity securities; European (EDR), which represent shares of either a U.S.
or non-U.S. corporation and are used to access the European markets; Global (GDR) and
International (IDR), which represent shares of either a U.S. or non-U.S. corporation; and
American Depositary Shares (ADS), which represent individual shares of a non-U.S.
corporation. U.S. resident entities that engage in primary or secondary market transactions
including the underwriting of a new DR (or ADS), directly with foreign residents should report
these securities on the TIC Form S.
Development Banks – Entities owned by national governments other than the United States
that are established to promote economic development of sectors of the economy, such as
trade, housing, agriculture, finance and industry.
Direct Investment – A direct investment relationship exists when a U.S. resident owns, directly
or indirectly, 10% or more of the voting equity securities of an incorporated foreign business (or
an 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-Investors – An entity that acquires or relinquishes securities for its own account.
Exchange-Traded Funds (ETFs) – Mutual funds which trade like stocks on exchanges. U.S.
resident entities that engage in transactions involving ETFs directly with foreign residents should
report these securities on the TIC Form S in columns 7 and 8 or 11 and 12 depending on who
issued the ETF.
Foreign Official Institutions
A foreign official institution includes the following:
1. Treasuries, including ministries of finance, or corresponding departments of national
governments; central banks; including all departments thereof; stabilization funds,
including official exchange control offices or other government exchange authorities;
diplomatic and consular establishments and other departments and agencies of national
governments
2. International and regional organizations.
3. Banks, corporations, or other agencies (including development banks and institutions
that are majority-owned by central governments) that are fiscal agents of national
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governments, performing activities similar to those of a treasury, central bank,
stabilization fund, or exchange control authority.

Foreign Resident – Any individual, corporation, or other organization or other entity legally
established outside the United States, regardless of the actual center of economic activity of the
entity. A corporation incorporated outside the United States is a foreign resident even if it has
no physical presence outside the United States. Foreign Residents include:
•

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). However,
all U.S. subsidiaries of foreign corporations are U.S. residents.

•

Any corporation or other organization legally established outside the United States,
including the branches, subsidiaries, and other affiliates of U.S. entities legally
established abroad.

•

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.

• 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).
Foreign Securities – Securities issued by entities established under the laws of a foreign country
(i.e., legally incorporated, otherwise legally organized, or licensed (such as branches) in a foreign
country) and securities issued by international organizations, even if these organizations are
located in the United States.
Global Notes/Certificates - Notes issued to one or more dealers that are represented by a
single global note and are intended to be the backing for registered securities issued by the
central security depository. Global notes/certificates issued to, and held at a foreign-resident
central securities depository are reportable. The entire amount of the issue minus any amount
known to be owned by U.S. residents should be reported. If the identity of the beneficial foreign
owner is not known, the country of the foreign central securities depository should be reported
on TIC Form S.
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 end-investor. An
entity’s status as an investment manager is not affected by the entity’s responsibility, or lack
thereof, for making investment decisions.
Long-Term Security – See “Securities”
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Nationalized Banks – Institutions owned by foreign central governments that are classified as
banks in their respective countries. Nationalized banks are classified as foreign private
commercial banks, unless they function as foreign official institutions.
Paying Agent – An entity that is appointed by an issuer of securities, which makes payments of
principal and interest on the issuer’s behalf.
Preferred Stock – Class of capital stock that pays dividends at a specified rate and that has
preference over common stock in the payment of dividends and the liquidation of assets.
Ordinarily, preferred stock does not carry voting rights and is reportable on the TIC S Form. In
instances where preferred stock does contain voting rights, direct investment rules apply. See
“Direct Investment.”
Prime Brokers – Full service brokers that facilitate the clearance and settlement of securities
provide the ability to trade with multiple brokerage houses while maintaining a centralized
master account with all of the client’s cash and securities and provide other services.
Repurchase Agreements – A transaction involving the sale of financial assets by one party to
another, subject to an agreement by the seller to repurchase the assets at a specified date or
under specified circumstances.
Except as otherwise noted below under the discussion of FAS Statement No. 140, all
repurchase agreement transactions with foreign residents in which cash balances are provided
as part of the transaction, are to be reported as borrowings from foreign residents collateralized
by the underlying assets. In each case, the amount of provided should be reported. In
particular:
(1)

Funds received from foreign residents from repurchase agreements are reported as
liabilities on the TIC CQ-1 Form, by country, and in memorandum row 8400-7. The
transfer of the securities should be excluded from purchases or sales on the TIC S
Form.

(2)

U.S. dollar-denominated funds received from foreign residents from repurchase
agreements are reported as liabilities on the TIC BL-1, by country, and in
memorandum row 8400-7. The transfer of the securities should be excluded from
purchases or sales on the TIC S Form.

(3)

Funds denominated in foreign currency received or lent under repurchase agreements
with foreign residents should be reported on the TIC BQ-2.

Please note that all repurchase agreements should be reported gross (i.e., FIN 41 should not be
applied).
If a repurchase agreement does not qualify as a secured borrowing under FAS Statement No.
140, the selling institution should account for the transaction as a sale of financial assets and a
forward commitment to repurchase the security. In these cases, the transfer of the securities
should be reported on the TIC S Form and the forward commitment should be reported on the
TIC D Form. The exchange of cash should be excluded from the TIC B and C Forms.
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Securities lending agreements in which one security is loaned in return for another are not
reportable on the TIC Forms.
Resale Agreements - A resale agreement (also known as a reverse repurchase agreement) is
a transaction involving the purchase of financial assets by one party from another, subject to an
agreement by the purchaser to resell the assets at a specified date or under specified
circumstances.
Except as otherwise noted below under the discussion of FAS Statement No. 140, all resale
agreement transactions with foreign residents in which cash balances are provided as part of
the transaction, are to be reported as or loans to foreign residents collateralized by the
underlying assets. In each case, the amount of cash lent should be reported. In particular:
(1) U.S. dollar-denominated funds lent to foreign residents through resale agreements
should be reported as claims on the TIC BC. Foreign currency denominated funds lent to
foreign residents through resale agreements should be reported as claims on the TIC BQ-2.
The receipt of the securities should be excluded from purchases or sales on the TIC S Form.
(2) Funds lent to foreign residents through resale agreements should be reported as
claims on the TIC CQ-1 Form, by country, and in memorandum row 8400-7. The transfer of
the securities should be excluded from purchases or sales on the TIC S Form.
If a resale agreement does not qualify as a borrowing under FAS Statement No. 140, the
purchasing institution should account for the transaction as a purchase of financial assets and a
commitment to sell. In these cases, the transfer of the securities should be reported on the TIC
S Form and the forward commitment should be reported on the TIC D Form. The exchange of
cash should be excluded from the TIC B and C Forms.
Securities lending agreements in which one security is loaned in return for another are not
reportable on the TIC Forms.
Securities – Any bill, note, bond, debenture, equity or similar instrument that is commonly
referred to as a security. Securities may be negotiable (tradable in secondary markets) or nonnegotiable (not tradable in secondary markets).
Long-Term Security – Securities with no contractual maturity or with an original maturity of
more than one calendar year. Long-term securities include securities with no stated
maturity, including equity securities such as common stock, preferred stock, partnership
interests, and fund shares. U.S. resident entities that engage in primary or secondary
market transactions should report these transactions on the TIC Form S. Their holdings
are excluded from the TIC B and C Forms.
Short-Term Security - Securities are classified as short-term if the original maturity of the
security is one calendar year or less. Holdings of short-term securities, which include
money market instruments such as Treasury bills, short-term agency securities,
commercial and finance paper, bankers’ acceptances, and short-term notes, should be
reported on the TIC B and C Forms. If multiple U.S. custodians are involved in the holding
of a negotiable security, the U.S. custodian nearest the foreign counterparty should report.

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Settlement Date – The date a security is delivered to the purchaser in exchange for cash.
Settlement Date Accounting – Under settlement date accounting, assets purchased or sold
are not recorded until settlement date. Settlement date accounting should be used for the
purposes of reporting the TIC Forms B, C, S and D. Therefore, only after receiving or sending
payment for any financial instrument should the transaction or position be reported.
Short-Term Security – See “Securities”
Subsidiary – A company in which another company (parent) owns 50% or more of the voting
securities, or an equivalent interest, or meets the consolidation requirements of U.S. GAAP. A
subsidiary is always, by definition, an affiliate, but subsidiary is the preferred term when majority
control exists.
Underwriter – An entity that takes possession of a security and resells it. The lead
underwriter(s) are the underwriter(s) responsible for managing the offering.
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, U.S. Virgin Islands, and Wake
Island.
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, mortgagebacked 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 that are not guaranteed by the
U.S. government or federally sponsored enterprises,even if the underlying collateral is
government guaranteed.
A. U.S. Federal Government Agencies and Corporations:
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)
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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:
Farm Credit System:
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. Resident – Any individual, corporation, or other organization legally established in the
United States, including branches, subsidiaries, and affiliates of foreign entities legally
established in the United States. Corporations incorporated in the United States are considered
to be U.S. residents even if they have no physical presence 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 necessarily by where the physical office of the counterparty resides.
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, would be classified as U.S. banking offices for purposes of the TIC reports.
U.S. Securities - Securities issued by U.S.- resident entities, with the exception of depositary
receipts that are backed by foreign securities and securities issued by international
organizations.
U.S. Treasury Securities – Instruments that are direct obligations of the United States
Treasury, including bills, notes, bonds, Treasury Inflation-index securities, STRIPS and
securities from which one or more coupons have been detached. Transactions involving long
term U.S. Treasury securities with foreign residents should be reported on TIC Form S. Short
term U.S. Treasury Securities held in custody on behalf of foreign residents should be reported
on TIC Form BL-2.
Warrant – An instrument (usually issued together with a bond or preferred stock) that entitles
the holder to buy at a specified price a proportionate amount of common stock within a specified
period of time. Warrants, options, rights, and other derivatives as defined by FAS 133 should
be excluded from the TIC S report and reported on the TIC Form D.

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VI.

APPENDICES

APPENDIX A
DEPARTMENT OF THE TREASURY

GEOGRAPHICAL

CLASSIFICATION

CODES FOR COUNTRIES, AREAS and
INTERNATIONAL & REGIONAL ORGANIZATIONS,
TO BE USED 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, next to these instructions, at:
http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/forms-s.aspx
and also at:
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/fctry-june2006.pdf

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APPENDIX B
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, next to these instructions, at:
http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/forms-s.aspx
and also at:
http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/foihome.aspx

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APPENDIX C

REPORTING RESPONSIBILITY FLOWCHARTS

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Reporting Requirements for U.S. Resident Underwriters
In the Issuance of Long-Term Securities

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Reporting Requirements for U.S. Resident Brokers
In the Purchase and Sale of Long-Term Securities

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Reporting Requirements for U.S. Resident Investment Managers for
Transactions to Purchase or Sell: (1) Securities for a Fund’s Portfolio (2) Fund Shares

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Reporting Requirements for U.S. Resident
Including U.S. Resident Fund Managers of U.S. Resident Funds
Transactions to Purchase or Sell: (1) Securities for a Fund’s Portfolio (2) Fund Shares

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Reporting Requirements for U.S. Resident Custodians
In the Redemption of Long-Term Securities
Issued by U.S. and Foreign Residents

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Reporting Requirements for U.S. Resident Prime Brokers
In the Purchase and Sale of Long-Term Securities

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Reporting Requirements for U.S. Resident Paying Agents
In the Redemption of Long-Term Securities
(A) Issued by U.S. Residents (B) Issued by Foreign Residents

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Reporting Requirements for U.S. Resident Issuers
(A) In the Issuance of Long-Term Securities (B) In the Redemption of Long-Term Securities

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Reporting Requirements for U.S. Resident End Investors
(A) In the Purchase and Sale of Long-Term Securities (B) In the Redemption of Long-Term Securities

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Reporting Requirements for U.S. Resident Dealers
In the Purchase and Sale of Long-Term Securities

End of Document

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