[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: 31CFR356.14]

[Page 360-361]
 
                  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. 356.14  Submitting bids for customers.

    Depository institutions and dealers may submit bids for their own 
account, for their customers, or for customers of intermediaries, 
subject to the requirements set out in paragraphs (a), (b), and (c) of 
this section. Others are permitted to submit bids only for their own 
account.
    (a) Payment. By submitting a bid on behalf of its customer or a 
customer of any intermediary, a submitter agrees to remit payment for 
securities awarded as a result of such bid.
    (b) Customer lists. A customer list must be submitted or be 
available, as provided in paragraphs (b) (1), (2) and (3), whenever bids 
for more than one customer are included on the same tender. The customer 
list must include direct customers of the submitter as well as customers 
of any intermediaries who are forwarding customer bids to the submitter.
    (1) For competitive bids submitted by paper tender, the submitter 
must provide a separate tender for each yield or discount rate at which 
a bid is submitted. As a part of such tender, the submitter must provide 
a list that includes the full name of each customer and the amount bid 
by each customer. For competitive bids submitted by computer, the 
submitter may submit bids at multiple yields or discount rates on the 
same tender. On each such tender, the submitter must submit the full 
name of each customer and the amount bid at each yield or discount rate 
by each customer.
    (2) For noncompetitive bids, a list must be provided that includes 
the full name of each customer and the amount bid by each customer. For 
mailed tenders, the customer list must be submitted with the tender. For 
other than mailed tenders, the customer list should accompany the 
tender. If the customer list is not submitted with the tender, 
information for the list must be complete and available for review by 
the deadline for submission of noncompetitive tenders, and must be 
received by the Federal Reserve Bank to which the tender was submitted 
by close of business on the auction day.
    (3) Bids submitted on behalf of trusts or other fiduciary estates 
must identify on the customer list the full name or title of the trustee 
or fiduciary; a reference to the document creating the trust or 
fiduciary estate with date of execution; and the employer identification 
number of the trust or fiduciary estate.
    (c) Net long position of customers. (1) A submitter or intermediary, 
when submitting or forwarding a competitive bid of $100 million or more 
for its customer, must inform that customer of the customer's net long 
position reporting obligation as described in Sec. 356.13.
    (2) A submitter or intermediary, when submitting or forwarding a 
competitive bid for a customer, must report the net long position amount 
if such amount is provided by the customer.
    (3) If personnel of a submitter or intermediary who are directly 
involved in receiving or forwarding a customer's bid know that the 
position information

[[Page 361]]

provided by a customer is incorrect, the customer's bid shall not be 
submitted or forwarded by the submitter or intermediary.
    (4) If the amount of a customer's net long position is to be 
reported by the submitter by paper tender, a separate tender must be 
submitted for that customer that includes the amount of the net long 
position.