Appendix A to Part 420 - Separate Reporting Entity
17:4.0.2.1.7.0.154.6.6 : Appendix A
Appendix A to Part 420 - Separate Reporting Entity
Subject to the following conditions, one or more aggregating
entity(ies) (e.g., parent, subsidiary, or organizational
component) in a reporting entity, either separately or together
with one or more other aggregating entity(ies), may be recognized
as a separate reporting entity. All of the following conditions
must be met for such entity(ies) to qualify for recognition as a
separate reporting entity:
(1) Such entity(ies) must be prohibited by law or regulation
from exchanging, or must have established written internal
procedures designed to prevent the exchange of information related
to transactions in Treasury securities with any other aggregating
entity;
(2) Such entity(ies) must not be created for the purpose of
circumventing these large position reporting rules;
(3) Decisions related to the purchase, sale or retention of
Treasury securities must be made by employees of such entity(ies).
Employees of such entity(ies) who make decisions to purchase or
dispose of Treasury securities must not perform the same function
for other aggregating entities; and
(4) The records of such entity(ies) related to the ownership,
financing, purchase and sale of Treasury securities must be
maintained by such entity(ies). Those records must be identifiable
- separate and apart from similar records for other aggregating
entities.
To obtain recognition as a separate reporting entity, each
aggregating entity or group of aggregating entities must request
such recognition from Treasury pursuant to the procedures outlined
in § 400.2(c) of this chapter. Such request must provide a
description of the entity or group and its position within the
reporting entity, and provide the following certification:
[Name of the entity(ies)] hereby certifies that to the best of
its knowledge and belief it meets the conditions for a separate
reporting entity as described in appendix A to 17 CFR part 420. The
above named entity also certifies that it has established written
policies or procedures, including ongoing compliance monitoring
processes, that are designed to prevent the entity or group of
entities from:
(1) Exchanging any of the following information with any other
aggregating entity (a) positions that it holds or plans to trade in
a Treasury security; (b) investment strategies that it plans to
follow regarding Treasury securities; and (c) financing strategies
that it plans to follow regarding Treasury securities, or
(2) In any way intentionally acting together with any other
aggregating entity with respect to the purchase, sale, retention or
financing of Treasury securities.
The above-named entity agrees that it will promptly notify
Treasury in writing when any of the information provided to obtain
separate reporting entity status changes or when this certification
is no longer valid.
Any entity, including any organizational component thereof, that
previously has received recognition as a separate bidder in
Treasury auctions from Treasury pursuant to 31 CFR part 356 is also
recognized as a separate reporting entity without the need to
request such status, provided such entity continues to be in
compliance with the conditions set forth in appendix A to 31 CFR
part 356.