1. W. Griever W. Carlucci D. Kuntz R. McGee S. Kessel T. Grob K. Aberbach M. Harris November 12, 2003

2. U.S. Portfolio Investment Surveys William Griever

3. 3 Survey Perspective Part of an integrated system Used in conjunction with monthly flow data Surveys are detailed, accurate, but not timely Monthly data very timely, but less accurate Used together to create ongoing estimates

4. 4 Survey History First survey in 1974 Measured foreign investment in U.S. securities Congressional concern over growing foreign influence Existing data lacked detail

5. 5 Survey History Liability surveys continued at 5-year intervals Correct amounts foreign held Improve geography Foreign ownership increasing Dec. 1974 - 4.8% June 2002 - 12.2%

6. 6 Asset Surveys First in 1994 Levels of U.S. foreign security holdings had been modest $ 9 billion per year 1980-1989 $65 billion per year 1990-1994 Assets were believed to be under-counted

7. 7 Asset Survey Results Measured U.S. holdings of foreign securities 60% above estimates $870 billion vs. $540 billion Showed need for future surveys

8. 8 Asset Under-Count Worldwide problem Measured portfolio investment flows 1991-1994 Assets $400 billion per year Liabilities $500 billion per year Countries had concentrated on measuring liabilities

9. 9 First CPIS Organized by the IMF, at year-end 1997 29 countries participated World measured additional $750 billion U.S. measured an additional $300 billion

10. 10 Problems Remain Worldwide, at year-end 1997 Assets $7.7 trillion Liabilities $9.3 trillion Difference 18% Implied more needed to be done

11. 11 CPIS 2001 67 countries All of the major industrial countries Most of the major offshore financial centers Short-term securities included

12. 12 Problems Remain Worldwide, at year-end 2001 Assets $12.6 trillion Liabilities $15.0 trillion Difference 16% Implies more needs to be done

13. 13 The Future Internationally-coordinated annual surveys Annual U.S. surveys U.S. benchmark surveys every 5 years U.S. “Large Reporters” surveys intervening years

14. 14 Data Uses Why care about these data? U.S. is the world’s largest net debtor Level of U.S. net debt is increasing rapidly A cause for concern?

15. 15 U.S. Debt Position

16. 16 Debt Components

17. 17 Data Uses Financial industry analysts International organizations U.S. Gov’t policy makers, data compilers Academic researchers Correct liabilities country attribution

18. 18 Country Attribution Country attribution of U.S. liabilities skewed towards major financial centers Country attribution on asset surveys accurate Can use counter-party asset data to improve geography of U.S. liabilities data

19. 19 Country Attribution

20. 20 Data Uses Asset data can be used to estimate other countries’ liabilities Combined CPIS asset results yield net liability positions by country Cross-check of reported country liability positions Improved geography of all countries’ liabilities

21. Who Must Report William Carlucci

22. 22 Who Must Report Proper classification of U.S. and foreign –Reporting organization –Owners of securities –Securities Categories of reporters –U.S.-resident custodians –U.S.-resident end-investors Reporting panels –Schedule 2 and Schedule 3 reporters –Schedule 3 only reporters

23. 23 Proper Classification of U.S. and Foreign Definition of United States –The fifty states of the United States –The District of Columbia –The Commonwealth of Puerto Rico –American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Island, Navassa Island, Northern Mariana Islands, Palmyra Atoll, U.S. Virgin Islands, and Wake Island

24. 24 Proper Classification of U.S. and Foreign Definition of U.S. resident –Any individual, corporation, or other organization located in the United States, including : branches subsidiaries foreign entities located in the United States. –Corporations incorporated in the United States are U.S. residents even if they have no “physical presence” in the United States.

25. 25 Proper Classification of U.S. and Foreign Examples of U.S. residents –General Motors Corporation (includes GMAC) –BP America Inc. –Societe Generale New York Branch –KfW International Finance, Inc. Examples of foreign residents –GMAC Canada –BP p.l.c. –Bank of New York Tokyo Branch –Tyco International, Ltd. –International Bank for Reconstruction and Development (IBRD; World Bank)

26. 26 Proper Classification of U.S. and Foreign How to determine residency –Country where legally incorporated, otherwise legally organized, or licensed –Tax forms W-8 forms are filed by foreign residents W-9 forms are filed by U.S. residents –Mailing address

27. 27 Proper Classification of U.S. and Foreign Citizenship does not determine residency International and regional organizations are foreign residents, even if located in the United States –IBRD; World Bank –Inter-American Development Bank (IDC) –International Finance Corporation (IFC) –Appendix E of instructions provides a complete list

28. 28 Proper Classification of U.S. and Foreign Reporting organization –Report foreign securities held or managed by all U.S.-resident parts of your organization U.S.-resident branches U.S.-resident offices U.S.-resident subsidiaries

29. 29 Proper Classification of U.S. and Foreign Owners of securities –U.S.-resident clients –U.S-resident parts of your organization Securities –Issued by foreign organizations –Issued by foreign parts of your organization

30. 30 Categories of Reporters U.S.-resident custodians –U.S.-resident organizations that hold foreign securities in custody for other U.S. residents –Invest in foreign securities for their own account

31. 31 Categories of Reporters U.S.-resident end-investors –U.S.-resident organizations that invest in foreign securities on behalf of other U.S. residents –Invest in foreign securities for their own account

32. 32 Categories of Reporters Examples of U.S.-resident end-investors –Managers of private and public pension funds –Managers of mutual funds, country funds, unit- investment funds, exchange-traded funds, collective- investment trusts –Insurance companies –Foundations –Institutions of higher learning (e.g., university endowments) –Trusts and estates

33. 33 Reporting Panels Schedule 2 and Schedule 3 reporters –Required to file in the same manner as they did on the December 31, 2001 report Schedule 3 only reporters –Required to file Schedule 3 in the same manner as they did on the December 31, 2001 report –Data that was reported on Schedule 2 in December 31, 2001 submission will now be reported on Schedule 3 for the annual reports

34. 34 Schedule 2 and Schedule 3 Reporters Exemption Levels No Schedule 2 exemption level. Securities entrusted to U.S. resident custodians should be reported on Schedule 3 if the fair (market) value of the foreign securities aggregated over accounts owned and/or managed equals $100 million or more as of December 31. This exemption level applies to each U.S.-resident custodian used.

35. 35 Schedule 3 Only Reporters Exemption Levels “Schedule 3 Only” reporters are exempt from reporting Schedule 2. Securities entrusted to U.S. resident custodians should be reported on Schedule 3 if the fair (market) value of the foreign securities aggregated over accounts owned and/or managed equals $100 million or more as of December 31. This exemption level applies to each U.S.-resident custodian used.

36. 36 Schedule 3 Only Reporters Exemption Levels Securities held directly with foreign-resident custodians, including: –foreign-resident offices of U.S. banks –foreign-residents of U.S. broker/dealers –foreign-resident central securities depositories –should be reported on Schedule 3 if the fair (market) value of the foreign securities aggregated over accounts owned and/or managed equals $100 million or more as of December 31.

37. 37 Schedule 3 Only Reporters Exemption Levels Securities held directly, managed directly, or held with U.S.-resident central securities depositories, (for which no U.S.-resident custodian is used), should be reported on Schedule 3 if the fair (market) value of the foreign securities aggregated over accounts owned and/or managed equals $100 million or more as of December 31.

38. 38 Reporting Panels Schedule 2 and Schedule 3 reporters U.S.-resident custodians –Schedule 2, report detailed information on foreign securities that: hold in custody for U.S.-resident clients invest in for own account entrust to foreign-resident custodians or central securities depositories entrust to U.S.-resident central securities depositories

39. 39 Reporting Panels Schedule 2 and Schedule 3 Reporters U.S.-Resident Custodians Schedule 2 Reporting U.S. resident (including the reporting custodian’s own portfolio) U.S.-resident custodian U.S.-resident central securities depository Foreign-resident custodian or central securities depository The “Schedule 2 and Schedule 3” reporter submits detailed data on Schedule 2.

40. 40 Reporting Panels Schedule 2 and Schedule 3 reporters U.S.-resident end-investors –Schedule 2, report detailed information on foreign securities not entrusted to U.S.-resident custodians; that is when the end-investor: holds the foreign securities directly employs foreign-resident custodians or foreign central securities depositories employs U.S.-resident central securities depositories

41. 41 Reporting Panels Schedule 2 and Schedule 3 Reporters U.S.-Resident End-Investors Schedule 2 Reporting U.S. resident (including the reporting end-investor’s own portfolio) U.S.-resident end-investor (including managers) U.S.-resident central securities depository Foreign-resident custodian or central securities depository The “Schedule 2 and Schedule 3” reporter submits detailed data on Schedule 2.

42. 42 Reporting Panels Schedule 2 and Schedule 3 reporters U.S.-resident custodians and end-investors –Schedule 3, report summary information for foreign securities entrusted to the safekeeping of a U.S.-resident custodian (excluding U.S.-resident central securities depositories)

43. 43 Reporting Panels Schedule 2 and Schedule 3 Reporters Schedule 3 Reporting U.S. resident (including the reporting organization’s own portfolio) U.S.-resident custodian or end-investor (including managers) U.S.-resident subcustodian The “Schedule 2 and Schedule 3” reporter submits summary data on Schedule 3 for each U.S.-resident custodian using the appropriate custodian codes. The “Schedule 2 and Schedule 3” reporter submits detailed data on Schedule 2.

44. 44 Reporting Panels Schedule 3 only reporters U.S.-resident custodians and end-investors –Schedule 3, report summary information for all foreign securities, regardless of where they are held in custody

45. 45 Reporting Panels Schedule 3 only reporters U.S.-resident custodians and end-investors –Separate Schedule 3 report for foreign securities entrusted to each U.S.-resident custodian using the appropriate custodian code –Consolidated Schedule 3 report for foreign securities entrusted to foreign-resident custodians and central securities depositories using custodian code 77 –Consolidated Schedule 3 report for foreign securities held directly or those entrusted to U.S.-resident central securities depositories using custodian code 88

46. 46 Reporting Panels Schedule 3 Only Reporters U.S. resident (including the reporting organization’s own portfolio) U.S.-resident custodian or end-investor (including managers) Foreign-resident custodian or central securities depository The “Schedule 3 only” reporter submits summary data on Schedule 3 using custodian code 77.

47. 47 Reporting Panels Schedule 3 Only Reporters U.S. resident (including the reporting organization’s own portfolio) U.S.-resident custodian or end-investor (including managers) The “Schedule 3 only” reporter submits summary data on Schedule 3 for each U.S.-resident custodian using the appropriate custodian codes. The “Schedule 3 only” reporter submits summary data on Schedule 3 using custodian code 88. U.S.-resident subcustodian

48. What Must be Reported on the Report of U.S. Ownership of Foreign Securities, Including Selected Money Market Instruments (SHCA) Debra Kuntz

49. 49 Foreign Securities Securities issued by foreign entities, including: –foreign-resident organizations –foreign subsidiaries of U.S. organizations –foreign branches of U.S. banks –U.S. corporations that have re-incorporated, i.e., are now incorporated under the laws of a foreign country –international and regional organizations

50. 50 Foreign Securities Information that does not contribute to determining if a security is foreign: –place of issue or location of trades –currency of issue –nationality of parent organization –guarantor

51. 51 Foreign Securities Example 1 Euro denominated 2-year note issued by a Daimler Chrysler affiliate incorporated in the United States. Is this security reportable?

52. 52 Foreign Securities Example 1 Answer Euro denominated 2-year note issued by a Daimler Chrysler affiliate incorporated in the United States. Is this security reportable? No. The security was issued by a U.S.-resident entity.

53. 53 Foreign Securities Example 2 U.S. dollar-denominated 2-year note issued directly in the United States by Daimler Chrysler incorporated in Germany. Is this security reportable?

54. 54 Foreign Securities Example 2 Answer U.S. dollar-denominated 2-year note issued directly in the United States by Daimler Chrysler incorporated in Germany. Is this security reportable? Yes. This security was issued by a foreign- resident entity. The currency of denomination and place of issue do not factor into the decision of whether the security is foreign or not.

55. 55 Foreign Securities Example 3 U.S. dollar-denominated asset-backed security issued by Company B incorporated in Hong Kong and guaranteed by the parent, Company A, incorporated in the United States. Is this security reportable?

56. 56 Foreign Securities Example 3 Answer U.S. dollar-denominated asset-backed security issued by Company B incorporated in Hong Kong and guaranteed by the parent, Company A, incorporated in the United States. Is this security reportable? Yes. This security was issued by a foreign-resident entity. The location of the guarantor does not factor into the decision of whether the security is foreign or not.

57. 57 Type of Reportable Foreign Securities Equity Short-Term Debt Long-Term Debt Asset-Backed Securities

58. 58 Equity Instruments representing an ownership interest in foreign-resident organizations. However, ownership interests representing direct investment are not reported.

59. 59 Equity Direct Investment Direct investment is defined as ownership or control of 10% or more of an organization’s voting stock.

60. 60 Equity Reportable equity securities include: –common stock –restricted stock –preferred stock –depositary receipts/shares –shares/units in foreign-resident funds –limited partner ownership in foreign- resident limited partnerships

61. 61 Equity Security type =1 (common stock) –all common stock, including restricted stock –depositary receipts/shares where the underlying security is common stock Security type = 2 (preferred stock) –all preferred stock, including restricted stock participating preference shares nonparticipating preference shares –convertible preferred stock –depositary receipts/shares where the underlying security is preferred stock

62. 62 Equity Security type = 3 (funds) –shares/units in foreign-resident funds Security type = 4 (other equity) –limited partner ownership in foreign- resident limited partnerships –all other foreign equity not specified in security types 1, 2, and 3

63. 63 Equity Restricted Stock Where possible, report the restricted shares with the same security ID (e.g., ISIN, CUSIP) as the non-restricted shares. If the restricted shares are valued at zero, report the market value for restricted stock using the non-restricted shares price.

64. 64 Equity Preferred Stock Differentiated participating and nonparticipating preference shares on the December 31, 2001 report. All preferred stock should now be classified as equity, security type = 2 (equity, preferred stock).

65. 65 Equity Depositary Receipts/Shares Reportable depositary receipts/shares are those where the underlying security was issued by a foreign resident. Although the depositary receipt/share is usually issued by a U.S.-resident organization, it represents an ownership interest in the foreign-resident company. ADRs, ADSs, GDRs, IDRs are considered foreign securities for this report.

66. 66 Equity Depositary Receipts/Shares Issuers of depositary receipts/shares should not report the holdings of the underlying foreign securities. U.S.-resident holders of the depositary receipts/shares should report these holdings.

67. 67 Equity Depositary Receipts/Shares Example U.S. Company A has issued $100 million of ADRs representing an ownership interest in a Swiss company. U.S. Company B purchases these ADRs. What should Company A and B report?

68. 68 Equity Depositary Receipts/Shares Example Answer U.S. Company A has issued $100 million of ADRs representing an ownership interest in a Swiss company. U.S. Company B purchases these ADRs. What should Company A and B report? Company B should report the holdings of $100 million of ADRs. Company A would not report equity ownership in the Swiss company.

69. 69 Equity Depositary Receipts/Shares Report the following based on the depositary receipt/share: –security id –security description –depositary receipt/share indicator –currency of denomination –market value –number of shares held Report the following based on the underlying security: –security type –name of issuer –country of issuer

70. 70 Equity Foreign-Resident Funds Report U.S. residents’ ownership of shares/units of funds legally established outside of the United States as equity. Examples of funds: –closed-end and open-end mutual funds –money market funds –exchange-traded funds –index-linked funds –investment trusts

71. 71 Equity Foreign-Resident Funds Classification of the fund as “foreign” is not based on the securities that the fund invests in. Example: –A fund organized in Bermuda that only purchases U.S. Treasury securities is a foreign-resident fund. –A fund organized in the United States that only purchases Japanese Treasury securities is a U.S.- resident fund.

72. 72 Foreign-Resident Funds Report U.S.-resident funds’ ownership of foreign securities. Ownership of shares of U.S.-resident funds is excluded, however, the foreign securities owned by these funds are reportable.

73. 73 Equity Exclusions Exclude from equity: –convertible debt –convertible debt is reported, but should be classified as debt on this report.

74. 74 Equity Exclusions Exclude from equity: –general partner ownership of foreign- resident limited partnerships –all other direct investment

75. 75 Short-Term and Long-Term Debt (excluding asset-backed securities) Instruments that usually give the holder the unconditional right to financial assets.

76. 76 Term Determine term, (short-term or long-term), based on the original maturity of the security. Original maturities of one year or less are short-term. Original maturities of greater than one year are long-term.

77. 77 Term Debt with multiple call options (multiple maturity dates) is long-term if any of the maturity dates is greater than one year from the date of issue. Perpetual debt is long-term.

78. 78 Term Examples A Japanese Treasury bill issued on November 15, 2003 and matures on February 15, 2004 is short-term. A German 30-year bond that matures on March 26, 2004 is long-term.

79. 79 Short-Term Debt Reportable short-term debt includes the following instruments where the original maturity is one year or less: –commercial paper –negotiable certificates of deposit, bank notes and deposit notes –foreign government securities (e.g., Japanese Treasury bills) –bankers’ and trade acceptances

80. 80 Short-Term Debt Security type = 5 (short-term commercial paper) –short-term commercial paper –short-term financial paper –short-term asset-backed commercial paper Security type = 6 (short-term negotiable CDs) –short-term negotiable certificates of deposit –short-term bank notes –short-term deposit notes

81. 81 Short-Term Debt Security type = 8 (other short-term debt) –short-term foreign government securities –short-term bankers’ and trade acceptances –short-term notes –all other foreign short-term debt not specified in security types 5, 6, and 7

82. 82 Long-Term Debt Reportable long-term debt includes the following instruments where the original maturity is greater than one year: –bonds –notes –debentures –stripped and zero coupon securities –convertible debt –negotiable certificates of deposit

83. 83 Long-Term Debt Security type = 9 (stripped and zero coupon long-term debt) –long-term zero coupon bonds and notes –long-term stripped securities where the host security is not an asset-backed security (both the IO and PO components) Security type = 10 (convertible long-term debt) –long-term convertible debt –long-term zero coupon convertible debt

84. 84 Long-Term Debt Security type = 12 (other long-term debt) –long-term CDs, bank notes and deposit notes –Brady bonds –covered bonds (e.g., Pfandbrief) –debt securities backed by a sinking fund –all other foreign long-term debt not specified in security types 9, 10, and 11

85. 85 Long-Term Debt Stripped Securities Reportable stripped securities are those where the issuer of the stripped security is a foreign-resident entity. Residency of the stripped security is not determined by the issuer of the underlying security.

86. 86 Long-Term Debt Stripped Securities Foreign securities that are the underlying securities for stripped securities, should be reported by the U.S. holder. Stripped securities issued by a U.S.-resident entity should not be reported, even if the underlying security is foreign.

87. 87 Long-Term Debt Stripped Securities Example U.S. Company A owns $100 million of German bonds. U.S. Company A issues stripped securities where these German bonds are the underlying securities. U.S. Company B purchases these stripped securities. What should Company A and B report?

88. 88 Long-Term Debt Stripped Securities Example Answer U.S. Company A owns $100 million of German bonds. U.S. Company A issues stripped securities where these German bonds are the underlying securities. U.S. Company B purchases these stripped securities. What should Company A and B report? Company A reports the ownership of $100 million of German bonds. The stripped securities are not reported by either company.

89. 89 Debt Exclusions Exclude from short-term and long-term debt: –shares/units in foreign-resident funds, even if the foreign fund invests in debt. –investments in foreign-resident funds are reported, but should be classified as equity on this report.

90. 90 Debt Exclusions Exclude from short-term and long-term debt: –loans –trade credits –accounts receivable –derivatives –non-negotiable certificates of deposit

91. 91 Debt Exclusions Exclude from short-term and long-term debt: –asset-backed securities –these securities are reported, but should be classified as asset-backed securities on this report.

92. 92 Asset-Backed Securities Securitized interest in a pool of assets, which give the purchaser a claim against the cash flows generated by the underlying assets.

93. 93 Asset-Backed Securities Reportable asset-backed securities are those where the issuer securitizing the assets is a foreign resident. The underlying asset is not a factor in determining whether the ABS is a foreign security.

94. 94 Asset-Backed Securities Reportable asset-backed securities include: –collateralized mortgage obligations (CMOs) –collateralized bond obligations (CBOs) –collateralized loan obligations (CLOs) –collateralized debt obligations (CDOs)

95. 95 Asset-Backed Securities Reportable asset-backed securities include: –other securities backed by: mortgages credit card receivables automobile loans consumer and personal loans commercial and industrial loans other assets

96. 96 Asset-Backed Securities Security type = 7 (short-term asset-backed securities) –short-term asset-backed securities Security type = 11 (long-term asset-backed securities) –long-term asset-backed securities –long-term stripped securities where the host security is an asset-backed security (including the IO and PO components and the tranches)

97. 97 Asset-Backed Securities Exclusions Exclude from asset-backed securities: –asset-backed commercial paper –Brady bonds –securities backed by a sinking fund –covered bonds (e.g., Pfandbrief) These securities are reported but should be classified as short-term or long-term debt on this report.

98. 98 Repurchase Agreements Security Lending Arrangements Repurchase agreements/securities lending arrangements and reverse repurchase agreements/securities borrowing arrangements involve the temporary transfer of a security for cash or another security.

99. 99 Repurchase Agreements Security Lending Arrangements The security lender should report the foreign security as if no repo or security lending arrangement occurred. The security borrower should exclude the foreign security.

100. 100

101. Review of Schedules Richard McGee

102. 102 Review of Schedules Schedule 1 Schedule 1: Reporter Contact Identification and Summary Financial Information Required to be filed by all organizations who received the report Contains basic information about the institution Contains summary financial information reported on Schedule 2 and 3

103. 103 Review of Schedules Schedule 1 Reporter Identification Number (Line 1) –10 digit number, including leading zeros, issued by FRBNY. –Contact FRBNY staff at 212-720-6300 if you do not know your identification number. –Do not report tax ID in this field

104. 104 Review of Schedules Schedule 1 Reporting Status (Line 3) –Only Schedule 2(s). –Only Schedule 3(s). –Schedule 2(s) and Schedule 3(s).

105. 105 Review of Schedules Schedule 1 Industrial Classification Code (Line 4) –9 categories. –Choose classification code that best describes your organization. –If two or more codes are appropriate choose the one that represents the largest portion of your organization’s day-to-day operations.

106. 106 Review of Schedules Schedule 1 Name of Service Provider or Vendor Used (Line 10) –The institution that provided your data or prepared the electronic files. Technical Contact (Line 11 - 14) –Provide the name of the person who can answer questions regarding the electronic submission of your data. –This person should be familiar with the file format(s) used and how the data was extracted from your databases or applications.

107. 107 Review of Schedules Schedule 1 Valuation Techniques (Line 15) –Describe the valuation techniques used by each reporting unit. –Did your organization report securities with a zero market value. If so, why? –How are inactively traded securities valued? –How are securities with internally generated IDs valued?

108. 108 Review of Schedules Schedule 1 Schedule 2 & Schedule 3 Summary Information –Total number of Schedule 2 & Schedule 3 records. –Total US$ fair market value of all equity. –Total US$ fair market value of all short-term debt. –Total US$ fair market value of all long-term debt. –Total US$ fair market value of all ABS.

109. 109 Review of Schedules Schedule 1 Certifier Information and Signature –Someone from within your organization must sign the Schedule 1 certifying its accuracy. –If the data was prepared by a third party vendor someone from within your organization is responsible for certifying your data submission.

110. 110 Review of Schedules Schedule 2 Schedule 2: Details of Securities Filed by U.S.-resident custodians and U.S.- resident end-investors Provides details of each foreign security Total of all Schedule 2 US$ market values should equal the summary financial information reported on Schedule 1

111. 111 Review of Schedules Schedule 2 Sequence Number (Line 2) –Sequence numbers should be sequential (i.e., 1,2,3) for each Schedule 2 record submitted. –If multiple divisions of an organization are preparing Schedule 2 records and it is burdensome to create sequential sequence numbers for the consolidated report, then each reporting unit should have unique sequence numbers.

112. 112 Review of Schedules Schedule 2 Reporting Unit Fields (Lines 3a & 3b) –Reporting Unit Code - If data is being collected from multiple databases or reporting systems, report the internal code used in your organization to identify the database or system. –Name of Reporting Unit - Enter a description or name of the reporting unit or division that is reporting the information.

113. 113 Review of Schedules Schedule 2 Security ID Fields (Lines 4 & 6) –Security ID - The security ID code used to identify the reported security. ISIN codes and CUSIPs are strongly preferred. –Security ID System - Enter the appropriate code from appendix C in this field. For example, if the security ID is an ISIN a 4 should be entered in this field.

114. 114 Review of Schedules Schedule 2 Text Descriptions (Lines 5 & 9) –Security Description - A brief description of the security reported. (Line 5) –Name of Issuer - The full legal name of the organization that issued the security. (Line 9)

115. 115 Review of Schedules Schedule 2 Security Type (Line 7) –Equity securities have the following categories: common stock (1) preferred stock (2) funds (including shares or unit trusts) (3) other: any other type of equity security not listed above (4)

116. 116 Review of Schedules Schedule 2 Security Type (Line 7) –Short-term debt has four categories: short-term commercial paper (5) short-term negotiable CDs (6) short-term asset-backed securities (7) all other short-term debt or selected money market instruments (8) –Examples are foreign treasury bills, short-term notes, and stripped securities with a maturity of one year or less.

117. 117 Review of Schedules Schedule 2 Security Type (Line 7) –Long-term debt has four categories: stripped and zero coupon long-term debt (9) convertible long-term debt (10) long-term asset-backed securities (11) all other long-term debt (12) –Examples are long-term negotiable cds, Brady bonds.

118. 118 Review of Schedules Schedule 2 Depositary Receipt Share - Indicates whether or not an equity security is a depositary receipt. (Line 8) Intentionally Left Blank - This field corresponds to a previous data item no longer collected. Leave this field blank or enter a null value. (Line 10)

119. 119 Review of Schedules Schedule 2 Country & Currency Fields (Lines 11 &12) –Country of Issuer - Enter the country code found in Appendix D that corresponds to the country of residence of the entity that issued the security. –Currency of Denomination - Enter the ISO code from Appendix F that corresponds to the currency in which the security being reported is denominated.

120. 120 Review of Schedules Schedule 2 Ownership Code (Line 13) –An ownership code must be supplied for each security. –A single security ID can have different ownership codes. –Security IDs with like information but differing ownership codes must be reported on individual Schedule 2 reports and cannot be aggregated.

121. 121 Fair (Market) Value Report the fair (market) value of securities as of close of business December 31. The fair (market) value follows the definition of FAS 115. Fair value is the amount at which an asset could be bought or sold in a current transaction between willing parties, other than in a forced or liquidation sale. If a quoted market price is available for an instrument, the fair (market) value is the product of the number of trading units times that market price.

122. 122 Fair (Market) Value For Securities that do not regularly trade, the estimate of fair value should be based on the best information available in the circumstances. The estimate of fair value should consider prices for similar assets and the results of valuation techniques to the extent available in the circumstances. Examples of valuation techniques include discounted cash flow, matrix pricing, option-adjusted spread models and fundamental analysis.

123. 123 Fair (Market) Value US$ Fair (Market) Value of Security Held (Line 14a) –Enter the US$ fair (market) value. Fair (Market) Value of Security Held Denominated in Currency of Issue (Line 14b) –Enter the fair (market) value of the security in the currency of original issue. –If the currency is denominated in US$ then enter the US$ fair (market) value. In these cases line items 14a and 14b will be equal.

124. 124 Fair (Market) Value If the fair (market) value is determined to be zero list the reason why on line 15 of Schedule 2. Examples of zero fair (market) value are: –Securities that are thinly or never traded. –Stock is impaired or security in default. –Organization that issued the security is in receivership.

125. 125 Fair (Market) Value Fair (market) value is calculated as: –Equity Number of Shares * Price –Short and long-term debt Face Value * Price –Asset-backed securities Remaining Principal Outstanding * Price

126. 126 Foreign Exchange Conversion Converting foreign currency to U.S. dollar –If the exchange rate is stated as foreign currency per U.S. dollar then you must divide to get the U.S. dollar equivalent. –If the exchange rate is stated as U.S. dollar per foreign currency then you must multiply to get the U.S. dollar equivalent.

127. 127 Foreign Exchange Conversion Example 1 Exchange rate quoted in units of foreign currency per US$. –The exchange rate as of 12/31/03 should be used when reporting. –Japanese denominated security with a fair (market) value of ¥300,000. –If the closing exchange rate were ¥105.75/US$. –Divide the foreign currency value by the foreign exchange rate and round to the US$ value. –¥300,000/105.75 = US$2,836.879 (US$2,837).

128. 128 Foreign Exchange Conversion Example 2 Exchange rate quoted in units of US$ per foreign currency. –The exchange rate as of 12/31/03 should be used when reporting. –British pound denominated security with a fair (market) value of £2,000. –If the closing exchange rate were $1.45/UK£. –Multiply the foreign currency value by the foreign exchange rate and round to the US$ value. –£2,000 * 1.45 = $2,900.

129. 129 Reporting an Equity Security Security type must be either 1, 2, 3 or 4. Depositary share indicator, line item 8, must be completed. Number of Shares Held, line item 16, must be provided. Line items 17 through 23 pertain to debt securities and should be left blank or null.

130. 130 Reporting a Debt Security Other Than Asset-Backed Security type must be either 5, 6, 8, 9, 10 or 12. The face value in the currency of denomination must be reported. Face value should be the same currency reported in line items 12 and 14b. Face value should be rounded to the nearest whole currency unit. If the security is traded in units, report the face value by multiplying each unit by the number of units held. An issue date (Line 18) and a maturity date (Line 19) must be reported.

131. 131 Reporting an Asset-Backed Security Security type should be either 7 or 11. The original face value in the currency of denomination must be reported. Original face value should be the same currency reported in line items 12, 14b and 21. Original face value is the amount that would still be outstanding if no principal had been repaid.

132. 132 Reporting an Asset-Backed Security Remaining principal outstanding in currency of denomination must be reported. Same currency as 12, 14b and 20. The remaining principal outstanding will only equal the original face value if no principal has been repaid.

133. 133 Reporting an Asset-Backed Security Original face value and remaining principal outstanding should be rounded to the nearest whole currency unit. If the security is traded in units, report the original face value and remaining principal outstanding by multiplying each unit by the number of units held. An issue date and a maturity date must be reported.

134. 134 Review of Schedules Schedule 3 for “Schedule 2 and Schedule 3” Reporters Multiple Schedule 3 records can be reported. A custodian code from Appendix G must be reported in line 3. If your organization’s U.S.-resident custodian does not appear in Appendix G, lines 9 through 14 of the Schedule 3 must be completed.

135. 135 Review of Schedules Schedule 3 for “Schedule 2 and Schedule 3” Reporters The aggregate fair market value of the securities entrusted to the custodian indicated in line 3 must be provided on lines 4 through 7. Your organization must indicate whether it is reporting as an end investor or a U.S.-resident custodian (Line 8). Schedule 3 Only reporters are required to submit up to two additional Schedule 3 reports using custodian code 77 or 88 (Line 3).

136. 136 Review of Schedules Schedule 3 for Schedule 3 Only Reporters Reporting custodian code 77 – Submit a separate Schedule 3 containing summary data on foreign securities held directly with foreign-resident custodians. –This includes: foreign-resident offices of U.S. banks foreign-resident offices of U.S. broker/dealers foreign-resident central securities depositories

137. 137 Review of Schedules Schedule 3 for Schedule 3 Only Reporters Reporting custodian code 88 – Submit a separate Schedule 3 containing summary data on foreign securities: held directly by the reporting organization entrusted to U.S.-resident central securities depositories

138. Key Issues for Reporters Sarit Kessel

139. 139 Reporting Criteria Custodians should report foreign securities held in custody for other U.S. residents. Custodians should report their own foreign securities.

140. 140 Securities to be Included Report all securities issued by foreign- resident entities, including international and regional organizations, held by U.S. residents. Report all American Depositary Receipts (ADRs) that represent ownership of foreign corporations that are held by U.S. residents.

141. 141 Securities to be Included Report all foreign securities, even if the security is restricted. Report all U.S. held foreign securities that have been entrusted to a foreign-resident custodian.

142. 142 Securities to be Included Report all U.S. held foreign securities that have been entrusted to a U.S.-resident central securities depository (such as the Depository Trust Company) or foreign- resident central securities depository (such as Euroclear).

143. 143 Security IDs Whenever possible, report securities using the ISIN or CUSIP Code. If unavailable, use appropriate SEDOL, CINS, Common, or other exchange- assigned code. Use internal codes only if no other code exists for the security.

144. 144 FRBNY Calculations FRBNY calculates implicit prices, factor values, and exchange rates based on market values and quantity fields submitted by reporters. –Helps FRBNY determine the quality of market values and quantities.

145. 145 How FRBNY Calculates Prices An implicit price for equity is calculated by dividing the US$ fair (market) value (line 14a) by the number of shares (line 16).

146. 146 How FRBNY Calculates Prices Example 1 If the US$ fair (market) value is $10,000,000 and the number of shares is 100,000, what is the implicit price?

147. 147 How FRBNY Calculates Prices Example 1 Answer If the US$ fair (market) value is $10,000,000 and the number of shares is 100,000, what is the implicit price? Implicit Price = US$ fair (market) value/ Number of shares $100 = $10,000,000 / 100,000

148. 148 How FRBNY Calculates Prices An implicit price for non-ABS debt is calculated by dividing the fair (market) value in currency of denomination (line 14b) by the face value in currency of denomination (line 17).

149. 149 How FRBNY Calculates Prices Example 2 If the fair (market) value in currency of denomination is $1,000,000 and the face value in currency of denomination is $900,000, what is the implicit price?

150. 150 How FRBNY Calculates Prices Example 2 Answer If the fair (market) value in currency of denomination is $1,000,000 and the face value in currency of denomination is $900,000, what is the implicit price? Implicit Price = Fair (market) value in currency of denomination / Face value in currency of denomination 1.11 = $1,000,000 / $900,000

151. 151 How FRBNY Calculates Prices An implicit price for asset-backed securities is calculated by dividing the fair (market) value in currency of denomination (line 14b) by the remaining principal outstanding in currency of denomination (line 21).

152. 152 How FRBNY Calculates Prices Example 3 If the fair (market) value in currency of denomination is ¥ 100,000 and the remaining principal outstanding in currency of denomination is ¥ 110,000, what is the implicit price?

153. 153 How FRBNY Calculates Prices Example 3 Answer If the fair (market) value in currency of denomination is ¥ 100,000 and the remaining principal outstanding in currency of denomination is ¥ 110,000, what is the implicit price? Implicit Price = Fair (market) value in currency of denomination / Remaining principal outstanding in currency of denomination. 0.909 = ¥ 100,000 / ¥ 110,000

154. 154 How FRBNY Calculates Factor Values The factor value for asset-backed securities is calculated by dividing the remaining principal outstanding in currency of denomination (line 21) by the original face value in currency of denomination (line 20).

155. 155 Calculation of Factor Values Example If the original face value in currency of denomination is £900,000 and the remaining principal outstanding in currency of denomination is £700,000, what is the factor value?

156. 156 Calculation of Factor Values Example Answer If the original face value outstanding in currency of denomination is £ 900,000 and the remaining principal outstanding in currency of denomination is £ 700,000, what is the factor value? Factor Value = Remaining principal outstanding in currency of denomination / Original face value in currency of denomination..78 = £ 700,000 / £ 900,000

157. 157 How FRBNY Calculates Exchange Rates The implicit exchange rate is calculated by dividing the US$ Fair (Market) Value (line 14a) by the Fair (Market) Value in Currency of Denomination (line 14b).

158. 158 Calculation of Exchange Rates Example If the US$ Fair (Market) Value is $100,000 and the Fair (Market) Value in Currency of Denomination is £80,000, what is the exchange rate?

159. 159 Calculation of Exchange Rates Example Answer If the US$ Fair (Market) Value is $100,000 and the Fair (Market) Value in Currency of Denomination is £80,000, what is the exchange rate? Exchange Rate = US$ Fair (Market) Value / Fair (Market) Value in Currency of Denomination. 1.25 = $100,000 / £ 80,000

160. 160 Common Reporting Errors Securities reported with an amount held equal to zero. Securities reported with inaccurate security types (zero-coupon bonds reported as all other long-term debt).

161. 161 Common Reporting Errors Failure to report remaining principal outstanding for asset-backed securities. Incorrectly reporting preferred stock as debt. (All preferred stock should be reported as equity). Failure to report foreign securities owned by U.S.-resident funds.

162. 162 U.S.-Resident Funds Example 1 If a U.S.-resident fund owns foreign securities, are these securities reportable?

163. 163 U.S.-Resident Funds Example 1 Answer If a U.S.-resident fund owns foreign securities, are these securities reportable? Yes. The foreign securities are reportable because the fund is incorporated in the U.S.

164. 164 U.S.-Resident Funds Example 2 If shares of a Caribbean fund, which is incorporated in the U.S., are purchased by a U.S.-resident are they reportable?

165. 165 U.S. Resident Funds Example 2 Answer If shares of a Caribbean fund, which is incorporated in the U.S., are purchased by a U.S.-resident are they reportable? No. Since the fund is incorporated in the U.S., the shares held by U.S. residents are not reportable.

166. 166 Common Reporting Errors Incorrectly calculated foreign currency market values. Defaulting currency to match country of issuer. Identifying securities as U.S. or foreign based on the first two letters in ISIN or first letter in CINS ID.

167. 167 Identify Securities Examples Question: Is ISIN US902118AU26 reportable?

168. 168 Identify Securities Examples Question: Is ISIN US902118AU26 reportable? Answer: Yes, because it is issued by Tyco International which is incorporated in Bermuda.

169. 169 Identify Securities Examples Question: Is ISIN US902118AU26 reportable? Answer: Yes, because it is issued by Tyco International which is incorporated in Bermuda. Is ISIN US01F0626485 reportable?

170. 170 Identify Securities Examples Question: Is ISIN US902118AU26 reportable? Answer: Yes, because it is issued by Tyco International which is incorporated in Bermuda. Is ISIN US01F0626485 reportable? No, because it is issued by the Federal National Mortgage Association (Fannie Mae).

171. 171 Identify Securities Examples Question: Is ISIN XS0077101433 reportable?

172. 172 Identify Securities Examples Question: Is ISIN XS0077101433 reportable? Answer: No, because it is issued by the Federal Home Loan Mortgage Corporation

173. 173 Identify Securities Examples Question: Is ISIN XS0077101433 reportable? Answer: No, because it is issued by the Federal Home Loan Mortgage Corporation. Is ISIN XS001087137 reportable?

174. 174 Identify Securities Examples Question: Is ISIN XS0077101433 reportable? Answer: No, because it is issued by the Federal Home Loan Mortgage Corporation. Is ISIN XS001087137 reportable? Yes, because it is issued by the Inter- American Development bank.

175. 175 Common Reporting Errors Failure to report securities issued by reincorporates, such as Tyco, Transocean, and Ingersoll-Rand. Failure to report securities issued by companies that are thought to be domestic, but are foreign incorporated, such as Schlumberger and Carnival Corp.

176. How We Review Your Data Report of U.S. Ownership of Foreign Securities, Including Money Market Instruments (SHCA) Tim Grob

177. 177 Four Levels of Review Reporter level –Analyzing your data for reasonability –Trend analysis Security level –Comparing attributes of reported securities to one another, and to commercial data sources. Macro level –Additional comparisons on a broader level Schedule 2/3 Comparison –Comparing schedule 3 data to schedule 2 data

178. 178 Reporter Level Review Reasonability Comparisons –Schedule 1 -vs- schedule 2 comparison –Schedules 1, 2 & 3 comparison to prior year (reporting trends) –Ownership code –Market values –Face values –Number of shares

179. 179 Reporter Level Review Reasonability Analysis Ensuring all schedule 2 data was reported, to include: –Security IDs –Ownership code –Number of shares held –Face Value held –Remaining principal (ABS)

180. 180 Reporter Level Review Reasonability Currency/Exchange Rate Analysis –Currency is US$ but US market value (item 14a) does not equal the market value in the currency of denomination (item 14b). –Currency is not US$ and the exchange rate is not 1, but the US$ market value equals the market value in the currency of denomination. –For each security, an implicit exchange rate is calculated, which should be the December 31, 2003 exchange rate for the currency.

181. 181 Reporter Level Review Reasonability Country of Issuer Country of Issuer is U.S. –Are these coded incorrectly or should these have been excluded from your report? –Are securities issued by international and regional organizations miscoded, and reported with the U.S. as the country of issuer? –Are securities issued by a U.S. protectorate (Puerto Rico, etc.)? If so, exclude from report.

182. 182 Reporter Level Review Reasonability Country of Issuer Country of Issuer is Canada –Has the amount of securities issued by Canadian entities changed substantially since the last reporting cycle? –Were Canadian securities coded as US securities on your system and so were incorrectly excluded from your report?

183. 183 Reporter Level Review Reasonability American Depositary Receipts (ADRs) Comparison of the reported market value and proportion of ADRs relative to total equity –Did you report any ADRs? –Did you previously? If so, has your position changed significantly?

184. 184 Reporter Level Review Reasonability Ownership Code Analysis –Have the market values and proportions of the total market value of securities reported as owner and as custodian, changed substantially? –Are you reporting any securities as owner?

185. 185 Reporter Level Review Reasonability Key Securities Analysis –Largest securities by market value Implicit exchange rates, implicit prices, country of issuer, etc. –Securities reported with zero quantities If reported correctly, these securities do not need to be reported, and should be excluded from future reports

186. 186 Reporter Level Review Reasonability Reporter Queries We focus on areas that were reporting problems in prior data submissions, such as: keywords in descriptions, such as rights, warrants, repurchase, repo, etc. debt prices far above par issue dates after as-of date maturity dates prior to as-of date additional comparisons to other reporters’ data

187. 187 Reporter Level Review Reasonability –Consistency of data reported, throughout the reporter’s submission –Example: You report data for Stock A with two different implicit prices, which is correct? –Stock A reported with implied price of $59.50 –Stock A reported with implied price of $60.15

188. 188 Security Level Review Search for Reincorporated Organizations Entities that were formerly incorporated in the United States but are now incorporated elsewhere. Please view the list of Reincorporates in your packet

189. 189 Security Level Review Data embedded in the security description, e.g., security type or maturity date, are compared to data in the relevant fields. Term of debt is calculated using issue and maturity dates and compared to the reported term and the security description. Issuer should not be a U.S. resident. Total amount held reported across all reporters is compared to the total amount outstanding for a given security.

190. 190 Macro Level Review Comparisons of various “cuts” of the aggregate data. Equity by country and security type Long-term debt by country and currency Short-term debt by country and currency Long-term debt by country and type of security Short-term debt by country and type of security

191. 191 Macro Level Review Comparisons of various “cuts” of the aggregate data ADRs by country Debt by maturity date Debt by coupon Published data can be found at http://www.ustreas.gov/tic/fpis.html

192. 192 Schedule 2/3 Review  (Market Values by security type, from Schedule 2s and 3s) reported by each custodian  (Market values attributed) to each custodian on Schedule 3 by its customers.

193. 193 Want to Know More? If you’d like more details about how we analyze your data, please contact us to arrange a meeting.

194. Benchmark (SHCA)/TIC Comparison Kenneth Aberbach

195. 195 Reports Used for Comparison U.S. Ownership of Foreign Securities (SHCA or Claims) TIC Reports –TIC BQ-1 Customer Claims –TIC BQ-2 Customer and own claims denominated in foreign currency –TIC BC Own Claims http://www.ustreas.gov/tic/

196. 196 Differences TIC - Face Value –SHCA - Face Value and Market Value TIC - Aggregate per country –SHCA - Detailed information on each security

197. 197 Differences TIC - Long-term and short-term negotiable CDs are combined –SHCA - Long-term and short-term negotiable CDs are separated by security type TIC - USD or USD equivalent –SHCA - Market Value in both USD and currency of denomination. Face value in currency of denomination that FRBNY converts to USD.

198. 198 Differences There may be more than one TIC report filed per institution. One consolidated SHCA report filed per institution –For example: A U.S. entity sends in separate TIC reports for the Bank Holding Company, Bank, and Broker Dealer but would send in one consolidated SHCA report.

199. 199 Compare - Overview Negotiable certificates of deposits Commercial Paper Other short-term negotiable securities Foreign currencies

200. 200 Compare - Overview Securities held in custody Securities owned by the reporter

201. 201 Compare Short-Term Negotiable CDs SHCA (per country) –Security Type 6 (Item 7) –Currency = USD (Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-1 (per country) –Negotiable CDs (column 2) –Note: Long term CDs (original maturity of over one year) are also included in this column but would be coded as Sec. Type 12 on SHCA

202. 202 Compare Short-Term Negotiable CDs SHCA (per country) –Security Type 6 (Item 7) –Currency not = USD (Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 (per country) –Other Customers’ Claims (column 6) –Note - CDs are just one of many items that can be reported in this column.

203. 203 Compare Short-Term Negotiable CDs Memo Item SHCA –Security Type 6 (Item 7) –Currency not = USD (Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Negotiable CDs (row line 8110-8, column 6)

204. 204 Compare Other Short -Term Negotiable Securities SHCA (per country) –Security Types 5, 7 and 8 (Item 7) –Currency = USD (Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-1 (per country) –All Short-Term Negotiable Securities (column 3)

205. 205 Compare Commercial Paper Memo Item SHCA –Security Type 5 (Item 7) –Currency = USD (Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-1 –Commercial Paper (row line 8161-2, column 3)

206. 206 Compare Other Short-Term Negotiable Securities SHCA (per country) –Security Types 5, 7 and 8 (Item 7) –Currency not = USD (Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 (per country) –Other Customers’ Claims (column 6) –Note - As mentioned before there are other items reportable in this column.

207. 207 Compare Other Short-Term Negotiable Securities Memo Item SHCA –Security Type 5, 7 or 8 (Item 7) –Currency not = USD (Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Short-Term Negotiable Securities (row line 8120-5, column 6)

208. 208 Compare Own Short-Term Securities SHCA (per country) –Security Type 5 or 6 or 7 or 8 (Item 7) –Currency = USD (Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BC (per country) –Negotiable CDs and All Short Term Negotiable Securities (column 2 + column 4) –Note: Long term CDs (original maturity of over one year) are also included in column 2 but would be coded as Sec. Type 12 on SHCA

209. 209 Compare Own Short-Term Securities SHCA (per country) –Security Type 5 or 6 or 7 or 8 (Item 7) –Currency not = USD (Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BQ-2 (per country) –Other Claims (column 4) –Note: Short-term securities are just one of many items that can be reported in this column.

210. 210 Compare Own Short-Term Negotiable CDs Memo Item SHCA –Security Type 6 (Item 7) –Currency not = USD (Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Negotiable CDs (row line 8110-8, column 4)

211. 211 Compare Own Other Short-Term Negotiable Securities Memo Item SHCA –Security Type 5, 7 or 8 (Item 7) –Currency not = USD (Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Short-Term Negotiable Securities (row line 8120-5, column 4)

212. 212 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = CAD (Canadian Dollar, Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Canadian Dollars (row line 8500-1, column 4) –Note: Short-term securities are just one of many items that can be reported in this column.

213. 213 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = EUR (Euros, Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Euros (row line 8500-2, column 4) –Note: Short-term securities are just one of many items that can be reported in this column.

214. 214 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = GBP (Sterling, Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Sterling (row line 8500-3, column 4) –Note: Short-term securities are just one of many items that can be reported in this column.

215. 215 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = JPY (Yen, Item 12) –Ownership code 1 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Yen (row line 8500-4, column 4) –Note: Short-term securities are just one of many items that can be reported in this column.

216. 216 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = CAD (Canadian Dollar, Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Canadian Dollars (row line 8500-1, column 6) –Note: Short-term securities are just one of many items that can be reported in this column.

217. 217 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = EUR (Euros, Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Euros (row line 8500-2, column 6) –Note: Short-term securities are just one of many items that can be reported in this column.

218. 218 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = GBP (Sterling, Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Sterling (row line 8500-3, column 6) –Note: Short-term securities are just one of many items that can be reported in this column.

219. 219 Compare Data by currency SHCA –Security Type 5, 6, 7 or 8 (Item 7) –Currency = JPY (Yen, Item 12) –Ownership code 2, 3, 4 and 5 (item 13) –Sum of face value (Item 17) TIC BQ-2 –Denominated in Yen (row line 8500-4, column 6) –Note: Short-term securities are just one of many items that can be reported in this column.

220. Technical Topics Preparing a file of your data Melissa Harris

221. 221 Technical Topics What to File Electronically Electronically: Schedule 2 –Required if submitting more than 200 records –Optional if submitting 200 or fewer records On paper: Schedule 1 Schedule 3 Schedule 2 –Optional if submitting 200 or fewer records

222. 222 Technical Topics: Media Requirements High Density IBM Compatible Diskette Standard CD Standard Windows PC ASCII Text Files With a.txt extension Labeled With Reporter Name & ID Accompanied by Dump of Data and Copy Command Used to Create the Diskette/CD

223. 223 Technical Topics: Unacceptable Media No IBM Mainframe Tapes/Cartridges - 3480/3490, Round (Reel) Tapes No EBCDIC Files No Compressed Files

224. 224 Technical Topics: File Formats Use Either of Two File Formats: Positional Semi-colon Delimited

225. 225 Technical Topics Correct Positional File Example Filler (space) Sequence Number Filler (space) Reporting Unit Filler (space) Name of Reporting Unit Reporter ID 225

226. 226 Technical Topics Correct Positional File Example Number of Shares Held Filler (space) Face Value (Non-ABS) Debt Only - NULL 226

227. 227 Technical Topics Correct Positional File Example Number of Shares Held -NULL Filler (space) Face Value (Non-ABS) Debt Only Filler (space ) Issue Date Filler (space) Maturity Date 227

228. 228 Technical Topics Incorrect Positional File Example Reporting Unit Description field begins in the incorrect position, 22. The correct position is 24. 228

229. 229 Technical Topics Correct Delimited File Example Reporter ID Delimiter Sequence Number Delimiter Reporting Unit Delimiter Name of Reporting Unit 229

230. 230 Technical Topics Correct Delimited File Example Fair Market Value Reason for Zero - NULL Number of Shares Held Delimiters for 7 NULL Debt & ABS Items Intentionally Left Blank 230

231. 231 Technical Topics Incorrect Delimited File Example Delimiters for 7 NULL Debt & ABS Items are missing 231

232. 232 Technical Topics Positional & Delimited Files Example Number of shares Face Value (Non-ABS) Debt Only 232

233. 233 Technical Topics Tips & Traps Files Must be Plain Text - Uncompressed –No.xls (Excel) files –No COBOL packed decimal fields Files Must be ASCII Diskette or CD Only

234. 234 Technical Topics Tips & Traps Incorrect Date Format –Correct format MMDDYYYY. For example, the date May 3, 2003 would be reported as 05032003. –Examples of incorrect date formats MM/DD/YY, MM/DD/YYYY, MM-DD- YY, etc. Need to Have Leading Zeroes –Reporter ID, date fields

235. 235 Technical Topics Tips & Traps Illegal Characters in the File, such as An extended list of tips & traps can be found on the Internet at http://www.treas.gov/tic/forms.html#bench mark, the document is titled “Key Issues for SHCA Software Developers”

236. 236 Technical Topics Contacts Melissa Harris IT Support Analyst (212) 720-7314 Amador Castelo IT Support Analyst (212) 720-8592 Susan Ma Team Leader (212) 720-1989 Howard Brickman Staff Director (212) 720-7759

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