[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR356.13]

[Page 372-373]
 
                  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  When must I report my net long position and how do I 
calculate it?

    (a) Net long position reporting threshold. (1) If you are bidding 
competitively in an auction, you must report your net long position when 
the total of your bids plus your net long position in the security being 
auctioned equals or exceeds the net long position reporting threshold 
(See table.). We will specify this threshold in the auction announcement 
for each security (See Sec.  356.10.). The threshold is typically 35 
percent of the offering amount, but we may state

[[Page 373]]

a different threshold in the auction announcement. To see whether you 
must report your net long position, follow this table:

------------------------------------------------------------------------
          If . . .                And if . . .           Then . . .
------------------------------------------------------------------------
(i) the total of your bids                          you must report your
 and your net long position                          net long position
 in the security being                               (which does not
 auctioned equals or exceeds                         include your bids).
 the reporting threshold.
(ii) the total of your bids   you have no position  you must report a
 in the auction equals or      or a net short        zero.
 exceeds the reporting         position in the
 threshold.                    security being
                               auctioned.
(iii) the total of your bids                        you may either
 and your net long position                          report nothing
 in the security being                               (leave the field
 auctioned is less than the                          blank) or report
 reporting threshold.                                your net long
                                                     position.
------------------------------------------------------------------------

    (2) Also, if you have more than one bid in an auction and you must 
report either your net long position or a zero, you must report that 
figure only once. Finally, if you are a customer and must report either 
your net long position or a zero, you must report that figure through 
only one depository institution or dealer. (See Sec.  356.14(d).)
    (b) ``As of'' time for calculating net long position. You must 
calculate your net long position as of one half-hour prior to the 
closing time for receipt of competitive bids.
    (c) Components of the net long position. Except as modified in 
paragragh (d) of this section, your net long position is the sum total 
of the par amounts of:
    (1) Your holdings of outstanding securities with the same CUSIP 
number as the security being auctioned;
    (2) Your holdings of STRIPS principal components of the security 
being auctioned, and;
    (3) Your positions, in the security being auctioned, in:
    (i) When-issued trading, including when-issued trading positions of 
the STRIPS principal components;
    (ii) Futures contracts that require delivery of the specific 
security being auctioned (but not futures contracts for which the 
security being auctioned is one of several securities that may be 
delivered, and not futures contracts that are cash-settled); and
    (iii) Forward contracts that require delivery of the specific 
security being auctioned or of the STRIPS principal component of that 
security.
    (d) Calculating the net long position in a reopening. In a reopening 
(additional issue) of an outstanding security, you may subtract the 
exclusion amount stated in the auction announcement from:
    (1) Your holdings of the outstanding securities (paragraph (c)(1) of 
this section) combined with
    (2) Your holdings of STRIPS principal components of the security 
being auctioned (paragraph (c)(2) of this section). We will specify the 
amount of holdings that you may exclude from the net long position 
calculation in the auction announcement. You may not take the exclusion 
if your combined holdings are zero or less. The exclusion is optional, 
but if you take the exclusion, you must include any holdings that exceed 
the exclusion amount in calculating your net long position. If the 
exclusion amount is greater than your combined holdings (paragraphs 
(c)(1) and (2) of this section), you may calculate the combined holdings 
as zero, but they cannot be included in the calculation as a negative 
number.