Are transactions (purchases and sales) with foreign residents in options and warrants reported on TIC Form S?
A. Options, rights, warrants, and other derivatives as defined by FAS 133 should be reported on the TIC Form D: Report of Holdings of, and Transactions in, Derivatives Contracts with Foreign Residents. That includes the vast majority of traded options, rights, and warrants on long-term securities. Exceptions: options, rights, warrants, and other derivatives that are written by a company, indexed to an ownership interest in the company, and not readily convertible to cash (often because they are convertible to a security that has a restriction on immediate sale) are excluded from the definition of a derivative under FAS 133. These are reported on TIC Form S as an equity security. For additional information on TIC Form D refer to http://www.ustreas.gov/tic/forms.html. Note: If an embedded derivative has not been bifurcated from the host, then the security should be reported without separating the embedded derivative. However, if the embedded derivative is bifurcated from its host contrac
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- Are transactions (purchases and sales) with foreign residents in options and warrants reported on TIC Form S?
