[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR356.14]

[Page 379]
 
                  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 
 
             Subpart B_Bidding, Certifications, and Payment
 
Sec. 356.14  What are the requirements for submitting bids for customers?

    (a) Institutions that may submit bids for customers. Only depository 
institutions or dealers may submit bids for customers, or for customers 
of intermediaries, under the requirements set out in this section. If a 
bid from a depository institution or a dealer fulfills a guarantee to a 
customer to sell a specified amount of securities at an agreed-upon 
price, or a price fixed in terms of an agreed-upon standard, then the 
bid is a bid of that depository institution or dealer. It is not a 
customer bid.
    (b) Payment. Submitters must remit payment for bids they submit on 
behalf of customers, including customers of intermediaries, that result 
in awards of securities in the auction.
    (c) Identifying customers. Submitters must provide the names of 
customers whenever they submit bids for them. Submitters must provide 
the names of their direct customers as well as customers of any 
intermediaries who are forwarding customer bids. For individuals, 
submitters must provide the customer's full name (first and last). For 
institutional customers, submitters must provide the name of the 
institution, and the bidder identification number if the customer 
provides it. For trusts or other fiduciary estates (See Appendix A.), 
submitters must provide on the customer list:
    (1) The full name or title of the trustee or fiduciary;
    (2) A reference to the document creating the trust or fiduciary 
estate with date of execution; and
    (3) The employer identification number (not social security number) 
of the trust or fiduciary estate. We do not consider trusts to be a 
separate bidder that have not been assigned, or that do not provide, an 
employer identification number.
    (d) Competitive customer bids. For each customer competitive bid, 
the submitter must provide the customer's name, the amount bid, and the 
yield or discount rate. The submitter or intermediary must also report 
the net long position amount if the customer provides it. The submitter 
must inform a customer of the net long position reporting requirement 
(See Sec. 356.13.) if the customer is bidding for $100 million or more 
of securities. If the submitter's or intermediary's personnel know that 
the customer's position information is not correct, the submitter or 
intermediary may not submit the customer's bid.
    (e) Noncompetitive customer bids. For each noncompetitive bid, the 
submitter must provide the customer's name and the amount bid. 
Submitters may either provide the customer's name with the bid or, if 
the list of customers is lengthy, the submitter may provide a summary 
bid amount covering all noncompetitive customers. If it provides a 
summary bid amount, the submitter must transmit the list of individual 
customers and their bid amounts by close of business on the auction day. 
However, the submitter must be able to provide the customer list details 
by the noncompetitive bidding deadline if requested.