[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR356.13]

[Page 359-360]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 356--SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, PUBLIC DEBT SERIES NO. 1-93)--Table of Contents
 
             Subpart B--Bidding, Certifications, and Payment
 
Sec. 356.13  Net long position.

    (a) Reporting net long positions. When bidding competitively, a 
bidder must report the amount of its net long position when the total of 
all of its bids in an auction plus the bidder's net long position in the 
security being auctioned equals or exceeds the net long position 
reporting threshold amount. The net long position reporting threshold 
amount for any particular security will be as stated in the offering 
announcement for that security. (See Sec. 356.10.) That amount will be 
$1 billion for bills, and $2 billion for notes and bonds, unless 
otherwise stated in the offering announcement. If the bidder either has 
no position or has a net short position and the total of all of its bids 
equals or exceeds the net long position reporting threshold amount, 
e.g., $1 billion for bills and $2 billion for notes and bonds, a net 
long position of zero must be reported. In cases where a bidder that is 
required to report the amount of its net long position has more than one 
bid, the bidder's total net long position should be reported in 
connection with only one bid. A bidder that is a customer must report 
its reportable net long position through only one depository institution 
or dealer. (See Sec. 356.14(c).)
    (b) Determination of net long position. (1) The net long position 
must be determined as of the designated reporting time, which is one-
half hour prior to the closing time for receipt of competitive bids. 
Except as modified in (b)(2) in the event of a reopening, a net long 
position includes the par amount of:
    (i) Holdings of outstanding securities with the same CUSIP number as 
the security being auctioned;
    (ii) Holdings of STRIPS principal components of the security being 
auctioned; and
    (iii) Positions, in the security being auctioned, in
    (A) When-issued trading, including when-issued trading positions of 
the STRIPS principal components;
    (B) Futures contracts that require delivery of the specific security 
being auctioned (but not futures contracts for which the security being 
auctioned is one of several securities that may be delivered, and not 
futures contracts that are cash-settled); and

[[Page 360]]

    (C) Forward contracts that require delivery of the specific security 
being auctioned or of the STRIPS principal component of that security.
    (2) In a reopening (i.e., additional issue) of an outstanding 
security, a bidder may subtract the published exclusion amount for that 
security from: its holdings of the outstanding securities (paragraph 
(b)(1)(i) of this section) combined with its holdings of STRIPS 
principal components of the security being auctioned (paragraph 
(b)(1)(ii) of this section). The amount of holdings that may be excluded 
from the net long position calculation will be specified in the Treasury 
offering announcement for that auction. A bidder may not take the 
exclusion if its combined holdings are zero or less than zero. The 
exclusion is optional for bidders. However, if a bidder takes the 
exclusion, it must include any holdings in excess of the exclusion 
amount in calculating its net long position. If the published exclusion 
amount is greater than the bidder's combined holdings (paragraphs 
(b)(1)(i) and (ii) of this section), the combined holdings may be 
calculated as zero, but cannot be included in the calculation as a 
negative number.

[58 FR 414, Jan. 5, 1993, as amended at 62 FR 25115, May 8, 1997; 62 FR 
43093, Aug. 12, 1997; 66 FR 56761, Nov. 13, 2001]