[Federal Register Volume 69, Number 53 (Thursday, March 18, 2004)]
[Notices]
[Pages 12898-12899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6057]


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DEPARTMENT OF THE TREASURY


Departmental Offices; Proposed Collections; Comment Requests

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, as part of its continuing 
effort to reduce paperwork burdens, invites the general public and 
other Federal agencies to comment on a new information collection that 
is proposed for approval by the Office of Management and Budget. The 
Office of International Affairs within the Department of the Treasury 
is soliciting comments concerning Treasury International Capital Form 
D, Report of Holdings of, and Transactions in, Financial Derivatives 
Contracts with Foreign Residents.
    Derivatives have become important financial instruments in the 
world financial system. Accounting standards for reporting on 
derivatives have been established, and international standards for 
reporting economic and financial statistics have been revised to 
include derivatives. Consequently, the Department of the Treasury is 
proposing the new quarterly TIC Form D to collect the information 
necessary for including derivatives in the U. S. balance of payments 
and international investment position accounts, and in the formulation 
of U.S. international financial and monetary policies.

DATES: Written comments should be received on or before May 17, 2004, 
to be assured of consideration.

ADDRESSES: Direct all written comments to Dwight Wolkow, International 
Portfolio Investment Data Systems, Department of the Treasury, Room 
4410-1440NYA, 1500 Pennsylvania Avenue NW., Washington DC 20220. In 
view of possible delays in mail delivery, please also notify Mr. Wolkow 
by e-mail ([email protected]), Fax (202-622-1207) or telephone 
(202-622-1276).

FOR FURTHER INFORMATION CONTACT: Copies of the proposed forms and 
instructions are available on the Treasury's TIC Forms Web page, http://www.treas.gov/tic/forms.html. Requests for additional information 
should be directed to Mr. Wolkow.

SUPPLEMENTARY INFORMATION: 
    Title: Treasury International Capital Form D, Report of Holdings 
of, and Transactions in, Financial Derivatives Contracts with Foreign 
Residents.
    OMB Control Number: NEW.
    Abstract: Form D will be part of the Treasury International Capital 
(TIC)

[[Page 12899]]

reporting system, which is required by law (22 U.S.C. 286f; 22 U.S.C. 
3103; E.O. 10033; 31 CFR part 128) for the purpose of providing timely 
information on international capital movements other than direct 
investment by U.S. persons. Form D is a quarterly report used to cover 
holdings and transactions in derivatives contracts undertaken between 
foreign resident counterparties and major U.S.-resident participants in 
derivatives markets. This information is necessary for compiling the 
U.S. balance of payments and international investment position 
accounts, and for formulating U.S. international financial and monetary 
policies.
    Current Actions: (a) All derivatives contracts with foreign 
residents that meet the FASB Statement Nos. 133 and 149 (FAS 133 and 
149) definition of a derivatives contract are to be reported on Form D. 
(b) Form D has three columns. The first column reports the aggregate 
total fair value at the end of each calendar quarter of all reportable 
derivatives contracts with a positive fair value. The second column 
reports the aggregate total fair value at the end of each calendar 
quarter of all reportable derivatives contracts with a negative fair 
value. The third column reports the net of all cash receipts (+) and 
payments (-) during that same reporting quarter for the acquisition, 
sale, or final closeout of derivatives, including all settlement 
payments under the terms of derivatives contracts. (c) In part 1 of the 
form, the grand totals of the three columns described in (b) are 
divided between over-the-counter (OTC) contracts and exchange-traded 
contracts. (d) In part 1 of the form, the OTC contracts are broken down 
into three categories: Single-Currency Interest Rate Contracts, Foreign 
Exchange Contracts, and Other Contracts. In addition, the interest rate 
and foreign exchange contract categories each are further broken down 
into three categories: Forwards, Swaps and Options. (e) In part 1 of 
the form, the exchange-traded contracts are broken down into three 
categories: Own Contracts on Foreign Exchanges, U.S. Customers' 
Derivatives Contracts on Foreign Exchanges, and Foreign Counterparties' 
Derivatives Contracts on U.S. Exchanges. (f) In part 1 of the form, 
three memorandum rows report information on contracts with own foreign 
offices, contracts with foreign official institutions (FOI), and 
contracts of U.S. depository institutions with foreigners. However, 
while the first two columns of fair values are required for all three 
of these rows, the third column of net settlements is only required for 
the FOI row. (g) In part 2 of the form, the grand totals of the three 
columns in part 1 each are broken down by the country of residence of 
the direct foreign counterparty to the contracts. (h) The reporting 
panel is expected to consist of all U.S.-resident participants in 
derivatives markets, where each reporter holds derivatives having a 
total notional value in excess of $100 billion, measured on a 
consolidated-worldwide accounting basis. The worldwide total includes 
all derivatives contracts with both U.S. and foreign residents, and all 
contracts in the accounts of both the reporter and the reporter's 
customers. (i) Once the exemption level of $100 billion is exceeded, a 
reporter must submit reports for that quarter and each of the remaining 
quarters in the current calendar year. (j) In order to reduce the 
reporting burden associated with implementing this information 
collection, these mandatory reporting requirements will be phased in 
over a period of 3 quarters. In phase 1, reporting will begin for all 
fair value positions in the first two columns, and net settlements for 
only OTC foreign exchange contracts. This phase will be effective 
beginning with the March 2005 reporting date, which covers the first 
quarter of 2005. In phase 2, reporting will begin for net settlements 
data for all exchange-traded contracts and will be effective beginning 
with the June 2005 report date, which covers the second quarter of 
2005. In the final phase, reporting will begin for all of the remaining 
net settlements data (OTC Interest Rate Contracts, other OTC contracts, 
contracts with FOIs, and the country breakout in part 2 of the form). 
This Phase will be implemented beginning with the September 2005 report 
date, which covers the third quarter of 2005.
    Type of Review: NEW.
    Affected Public: Business or other for profit organizations. Form D 
(NEW).
    Estimated Number of Respondents: 40.
    Estimated Average Time per Respondent: Thirty (30) hours per 
respondent per filing, effective with the report as of September 2005 
when mandatory reporting is fully implemented.
    Estimated Total Annual Burden Hours: 4,800 hours, based on 4 
reporting periods per year.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for Office of 
Management and Budget approval. All comments will become a matter of 
public record. The public is invited to submit written comments 
concerning: (a) whether Form D is necessary for the proper performance 
of the functions of the Office, including whether the information will 
have practical uses; (b) the accuracy of the above estimate of the 
burdens; (c) ways to enhance the quality, usefulness and clarity of the 
information to be collected; (d) ways to minimize the reporting and/or 
record keeping burdens on respondents, including the use of information 
technologies to automate the collection of the data; and (e) estimates 
of capital or start-up costs of operation, maintenance and purchase of 
services to provide information.

Dwight Wolkow,
Administrator, International Portfolio Investment Data Systems.
[FR Doc. 04-6057 Filed 3-17-04; 8:45 am]
BILLING CODE 4810-25-P