Commercial banks and savings associations

Board of Governors of the Federal Reserve System

Instructions for Preparation of

The Report of Selected Money Markets Rates

Reporting Form FR 2420
Effective January 15, 2016

INSTRUCTIONS FOR PREPARATION OF

Report of Selected Money Markets
Rates
FR 2420

GENERAL INSTRUCTIONS
The FR 2420 report is filed on a daily basis and collects
data on transactions in selected money market instruments that were executed by banking institutions on the
report date. The report is comprised of four parts. Part A
collects data on domestic federal funds purchased, which
are defined as unsecured borrowings from counterparties
that are exempt entities as defined in Regulation D. Part
AA collects data on selected unsecured borrowings from
non-exempt entities as defined in Regulation D. Part B
collects data on Eurodollar liabilities. Part C collects data
on time deposits and certificates of deposit issued by
domestic offices. These data include for each transaction:
the dollar amount, the trade date, the settlement date, the
maturity date, the interest rate, the counterparty type and
other associated information.

Purpose
The FR 2420 is used to monitor market activity in
selected money market instruments. The data may also
be aggregated to create rate or volume statistics for
publication.

Who Needs to Report
The following banking organizations must file the FR
2420 on a daily basis:
a. U.S. Depository Institutions - U.S. depository institutions are required to report the FR 2420 if they
meet one of two criteria: (1) An asset size criteria
for banking organizations with total assets of $18
billion or more; or (2) An activity criteria for
banking organizations with total assets of $5 billion
or more but less than $18 billion.
1. Asset Size Criterion - Every national bank, state
member bank, insured state non-member bank,
and savings association with total assets of $18
FR 2420
General Instructions October 2015

billion or more as of the most recent September
30 filing of the FFIEC 31 or FFIEC 041 Report
(Call Report) is required to report the FR 2420.
i. Changes in Reporting Status
• If a U.S. depository institution does not currently report on the FR 2420 and meets the
asset size reporting threshold based on the
most recent September filing of the Call
Report, the banking organization must begin
to report on the FR 2420 effective January 1
of the following year.
• If a U.S. depository institution that reports on
the FR 2420 falls below the asset size threshold based on the most recent September
filing of the Call Report, the banking organization must continue to report on the FR 2420
through the December 31 report date.
2. Activity Criterion - Every national bank, state
member bank, insured state non-member bank,
and savings association with total assets of $5
billion or more but less than $18 billion as of the
most recent filing of the Call Report and federal
funds activity (as described in Part A) totalling
more than $200 million on two or more days
over the preceding three months is required to
report the FR 2420.
i. Changes in Reporting Status
• If a U.S. depository institution does not currently report the FR 2420 but meets the asset
size threshold of total assets of $5 billion or
more but less than $18 billion based on the
most recent filing of the Call Report, and has
federal funds activity totalling more than
$200 million on two or more days over the
preceding three months, the banking organization must begin to report on the FR 2420
GEN-1

General Instructions

effective no more than three months after
meeting the activity threshold. New reporters
should contact the Federal Reserve Bank of
New York to discuss plans to begin reporting.
• If a U.S. depository institution that reports on
the FR 2420 meets the asset size threshold of
total assets of $5 billion or more but less than
$18 billion but falls below the activity criterion, the banking organization must continue
to report until the activity criterion is not met
for twelve consecutive months. Requests for
a change in reporting status based on negligible activity should be made in writing,
should provide a look back at the data for at
least two quarters, and be submitted to the
Federal Reserve Bank of New York.
b. Foreign Banking Organizations
Every U.S. branch and agency of a foreign bank
with total third party assets of $2.5 billion or more
as of the most recent September 30 filing of the
FFIEC 002 Report (Schedule RAL Item 3 column
A less Schedule RAL Item 2.a.).
1. Changes in Reporting Status
• If a U.S. branch or agency of a foreign bank
does not currently report the FR 2420 but
meets the reporting threshold based on the
most recent September filing of the FFIEC
002 Report, the U.S. branch or agency of a
foreign bank must begin to report on the FR
2420 effective January 1 of the following
year.
• If a U.S. branch or agency of a foreign bank
that reports on the FR 2420 falls below the
threshold based on the most recent September filing of the FFIEC 002 Report, the U.S.
branch or agency of a foreign bank must
continue to report until the December 31
report date.
c. International Banking Facilities
Each International Banking Facility, or IBF, (of a
banking organization that reports on the FR 2420)
must report a separate FR 2420 for Part B (Eurodollars) only.

GEN-2

d. Significant Banking Organizations
Any banking organization not meeting the threshold for reporting may be required to report if the
Federal Reserve deems the institution significant. A
significant banking organization is an entity that is
a participant in money markets whose data is
important to the analysis and monitoring of market
activity. A banking organization deemed significant
will be expected to begin to report on the FR 2420
within three months of its designation.

Rules of Consolidation
a. U.S. Depository Institutions:
For Part A, Part AA, and Part C, institutions with
foreign offices must follow the Call Report instructions for consolidation in the domestic-office portion of the FFIEC 031 in order to determine which
activity to report. That is, the institution must report
transactions for all domestic branches and majorityowned domestic subsidiaries whose data are
included in the institution’s FFIEC 031.
For Part A, Part AA, and Part C, institutions with
domestic offices only must follow the Call Report
instructions for consolidation in the FFIEC 041 in
order to determine which activity to report. That is,
the institution must report transactions for all
domestic branches and majority-owned domestic
subsidiaries whose data are included in the institution’s FFIEC 041.
For Part B, report all Eurodollar transactions for
each significant foreign office; that is any foreign
office which has total assets of $2 billion or more
booked at that office as of the close of business for
the report date.
• A U.S. depository institution may opt to report
the activity of all offshore branches or offices
located in foreign countries instead of applying
the significance test each business day if this
option is more suited to the institution’s operations.
b. Foreign Banking Organizations:
For Part A, Part AA, and Part C, U.S. branches
and agencies of foreign banks must follow the
FFIEC 002 instructions for consolidation in order
to determine which activity to report. That is, each
FR 2420
General Instructions October 2015

General Instructions

designated branch or agency of a foreign bank must
file a separate report unless the foreign bank submitted a consolidated FFIEC 002 for two or more of its
offices. In such cases, a consolidated FR 2420 must
be filed. Respondents should contact the Federal
Reserve Bank of New York to obtain permission for
any deviation from this practice.

ing
link:
http://www.frbservices.org/centralbank/
reportingcentral/resource_center.html.

For Part B, U.S. branches and agencies of foreign
banks must report all Eurodollar borrowings for
managed and controlled branches located in the
Cayman Islands or Nassau, Bahamas (Cayman and
Nassau branches). Managed and controlled branches
are those branches for which the U.S. branch or
agency files an FFIEC 002S (as defined in the
FFIEC 002S instructions). In the future, the Federal
Reserve Board may determine that a FBO branch
outside of these two locations but within the Caribbean generally should report on the FR 2420 if the
majority of the responsibility for business decisions, including but not limited to decisions with
regard to lending or asset management or funding
or liability management, or the responsibility for
recordkeeping in respect of assets or liabilities for
that FBO branch, resides at a FBO that is a FR 2420
respondent.

• Part A, Federal Funds, is due by 7 a.m. one business
day after the report date.

U.S. branches and agencies of foreign banks are to
report all Eurodollar borrowings for each significant Cayman and Nassau branch managed and
controlled by a U.S. office. A significant branch is a
branch which has total assets of $2 billion or more
booked at that office as of the close of business for
the report date.
• A U.S. branch or agency of a foreign bank may
opt to report the activity of all Cayman and
Nassau branches managed and controlled by a
U.S. office instead of applying the significance
test each business day if this option is more suited
to the institution’s operations.

Where to Submit Reports
All respondents must submit their completed report using
the Federal Reserve System’s Reporting Central system.
The Federal Reserve Bank of New York will provide
technical assistance to any respondent requiring guidance
on using Reporting Central. Additional information on
the Reporting Central system can be found at the followFR 2420
General Instructions October 2015

When to Submit Reports
Respondents must file the FR 2420 for each business day
as follows:

• Part AA, Selected Borrowings from Non-exempt
entities, is due by 7 a.m. one business day after the
report date.
• Part B, Eurodollars, is due by 7 a.m. one business day
after the report date.
• Part C, Time Deposits and Certificates of Deposit
(CDs), is due by 2 p.m. two business days after the
report date.
If the submission date falls on a weekend or holiday, the
data must be received on the first business day after the
weekend or holiday. No other extensions of time for
submitting reports will be granted.

Amended Reports
The Federal Reserve will require the filing of amended
reports if reports as previously submitted contain significant errors. Please contact the FRBNY’s Statistics Function concerning amended reports. Respondents must
submit amended reports using The Federal Reserve Systems’ Reporting Central system.

General Terms for Reporting Data
All terms in ‘‘italics’’ throughout these instructions are
defined in the Glossary.

Affiliates and Intercompany (Related
Parties)
All intercompany transactions are excluded from all parts
of the FR 2420. In addition, transactions between the
reporting institution and its affıliates are excluded from
all parts of the FR 2420.

Arm’s Length Transactions
Only arm’s length transactions should be reported on all
parts of the FR 2420.
GEN-3

General Instructions

Counterparty Type

Interest Rates

For each Part of the FR 2420 report, the counterparty
type for each transaction is reported. The counterparty
types are defined in the Glossary section. The numerical
value assigned to each counterparty type is used where
relevant across all the Parts of the report; therefore the
numerical value and counterparty type description are
consistent across all Parts of the report.

All interest rates reported on the FR 2420 should always
be reported as a percent expressed out to five decimal
places with a leading 0 if the rate is less than one percent.
Negative interest rates are to be preceded with a ‘‘-’’ sign.
• Example 1: An interest rate of 2.53 percent would be
reported as 2.53000.

Dollar Amount Denomination

• Example 2: An interest rate of 1/2 percent would be
reported as 0.50000.

All amounts on the FR 2420 are reported in millions of
dollars, with amounts rounded to the nearest million.
Transactions less than $1 million are not reported.

• Example 3: A negative interest rate of -1.0 percent
would be reported as -1.00000.

Forward Starting Transactions

Negative Entries

Report all transactions in all parts of the FR 2420
regardless of when the transactions settle; including
forward starting transactions.

Except for interest rate and spread fields, negative entries
are not appropriate on the FR 2420 and must not be
reported.

GEN-4

FR 2420
General Instructions October 2015

LINE ITEM INSTRUCTIONS FOR

Federal Funds
Part A

This section contains line item instructions on federal
funds transactions on Part A.

Definition
Respondents should report all purchases of federal funds
by the institution’s U.S. offices executed on the report
date. Federal funds purchases are unsecured borrowings
in U.S. dollars from a counterparty that is an exempt
entity as defined in Regulation D (Section 204.2
(a)(1)(vii)) and the glossary section of the Report of
Transaction Accounts, Other Deposits and Vault Cash
(FR 2900) instructions.
Include:
• All federal funds purchases that are executed at
arm’s length.
• Federal funds purchased with maturities of overnight, specified term, open trades or continuing
contract.
• Federal funds purchased from exempt entities, which
include but are not limited to (see glossary section of
the FR 2900 instructions for complete list):
— U.S. office of another U.S. depository institution,
— U.S. branch or agency of a foreign bank,
— Federal Home Loan Bank, and
— Other U.S. government-sponsored enterprise
(GSE).
Exclude from Part A:
• Deposits as defined in Regulation D (Section 204.2
(a)(1) including:
— Any deposit automatically placed into federal
funds as a result of sweep agreements; or other
contractual cash management agreements.
— Time deposits (as defined in Part C).
FR 2420
Part A October 2015

• Borrowings in the form of debt instruments.
• Repurchase agreements and security lending transactions.
• Overdrafts.
• Intraday transactions.
• Federal Home Loan Bank advances.
• Borrowings from firms other than exempt entities, as
defined in Regulation D and the glossary section of
the Report of Transaction Accounts, Other Deposits
and Vault Cash (FR 2900) instructions. These other
unsecured borrowing transactions are reported in
Part AA (Selected Borrowings from Non-exempt
Entities).

Items to Report
Dollar Amount
Report the amount (in millions of dollars) of each
reportable federal funds transaction as of the date the
trade is executed (i.e., the date that terms are agreed on);
even if the funds are made available to the reporting
institution on a subsequent date. The dollar amount
reported for each transaction is the amount that is made
available to the reporting institution.
If no transactions were executed on the report date, report
‘‘0’’ for the dollar amount. If no transactions were
executed because the banking organization was closed on
the report date, report ‘‘0’’ for the dollar amount.

Trade Date
Report the trade date of each transaction in
YYYYMMDD format.
A-1

Part A

Settlement Date
Report the settlement date of each transaction in
YYYYMMDD format.

how to report interest rates, see the General Terms for
Reporting Data section within the General Instructions.

Counterparty Type
Maturity Date
Report the maturity date of each transaction in
YYYYMMDD format. In cases where the transaction
does not have a specific maturity date (i.e., open trades)
enter 99991231. Open trades that are rolled over are to be
reported each day that the rate is changed.

Interest Rate
Report the interest rate applicable to the transaction. The
interest rate should always be reported as a percent
expressed out to five decimal places with a leading zero if
the interest rate is less than one percent. Negative interest
rates are to be preceded with a ‘‘-’’ sign. For examples of

A-2

Enter one of the values listed below to describe the
counterparty to the transaction:
1. U.S. depository institution
3. U.S. branch or agency of a foreign bank
5. Non-depository financial institution that is defined
as an exempt entity
8. U.S. government-sponsored enterprise (GSE) that is
defined as an exempt entity
10. Other exempt entity
The definition of each counterparty type listed above is
provided in the Glossary section.

Part A

FR 2420
October 2015

LINE ITEM INSTRUCTIONS FOR

Selected Borrowings From Non-Exempt
Entities
Part AA

This section contains specific line item instructions on
selected unsecured borrowings from non-exempt entities
reported in Part AA.

Definition
Respondents should report all transactions of unsecured
borrowings in U.S. dollars made to the institution’s U.S.
offices (not included in PART A, Federal Funds) executed
on the report date from a counterparty that is a nonexempt entity as defined in Regulation D (Section 204.2
(a) (vii)) and the glossary section of the Report of
Transaction Accounts, Other Deposits and Vault Cash
(FR 2900) instructions.
Include all unsecured borrowings (not included in PART
A, Federal Funds) that:
• Are transacted at arm’s length;
• Have an interest rate;
• Have a maturity of overnight, specified term, open
trades or continuing contracts; and
• Are borrowings from non-exempt entities which
include but are not limited to (see the glossary
section of the FR 2900 instructions for complete
list):

— Time deposits (as defined in Part C).
• Borrowings in the form of debt instruments.
• Repurchase agreements and security lending transactions.
• Overdrafts.
• Intraday transactions.
• Unsecured borrowings from exempt entities that are
reported in Federal Funds (Part A).

Items to Report
Dollar Amount
Report the amount (in millions of dollars) of each
reportable transaction as of the date the trade is executed
(i.e., the date that terms are agreed on); even if the funds
are made available to the reporting institution on a
subsequent date. The dollar amount reported for each
transaction is the amount that is made available to the
reporting institution.
If no transactions were executed on the report date, report
“0” for the dollar amount. If no transactions were
executed because the banking organization was closed on
the report date, report “0” for the dollar amount.

— Partnerships and corporations wherever located,

Trade Date

— Non-banking subsidiaries of a depository institution, and

Report the trade date of each transaction in
YYYYMMDD format.

— International institutions.

Settlement Date

Exclude from Part AA:
• Deposits (as defined in Regulation D (Section 204.2
(a)(1)) including:
— Any deposit automatically placed as a result of
sweep agreements; or other contractual cash
management agreements.
FR 2420
Part AA October 2015

Report the settlement date for each transaction in
YYYYMMDD format.

Maturity Date
Report the maturity date of each transaction in
YYYYMMDD format. In cases where the transaction
AA-1

Part AA

does not have a specific maturity date (i.e., open trades)
enter 99991231. Open trades that are rolled over are to be
reported each day that the rate is changed.

Counterparty Type
Enter one of the values listed below to describe the
counterparty to the transaction:
2. Non-U.S. offıce of a U.S. depository institution

Interest Rate

4. Non-U.S. offıce of a foreign bank

Report the interest rate applicable to the transaction. The
interest rate should always be reported as a percent
expressed out to five decimal places with a leading zero if
the interest rate is less than one percent. Negative interest
rates are to be preceded with a “-” sign. For examples of
how to report interest rates, see the General Terms for
Reporting Data section within the General Instructions.

6. Non-depository financial institution that is defined
as an non-exempt entity

AA-2

9. Non-financial corporate entity
11. Other non-exempt entity
The definition of each counterparty type listed above is
provided in the Glossary section.

Part AA

FR 2420
October 2015

LINE ITEM INSTRUCTIONS FOR

Eurodollars
Part B

This section contains line item instructions on Eurodollar
transactions.

Definition
Respondents should report all Eurodollar transactions
which are unsecured borrowings in U.S. dollars booked at
non-U.S. offices, executed on the report date.
Include in Part B, all Eurodollar transactions that:
• Are transacted at arm’s length.
• Have an interest rate; and
• Have a maturity of overnight, specified term, open
trades or continuing contracts.
Exclude from Part B:
• Demand deposits (as defined in Regulation D (Section 204.2(b)(1)), unless the deposit meets the criteria listed above.
• Any deposit automatically placed into Eurodollars
under sweep agreements; or other contractual cash
management agreements.
• Borrowings in the form of debt instruments.
• Repurchase agreements and security lending transactions.
• Overdrafts.

For U.S. branches and agencies of foreign banks, report
the Eurodollar borrowings for managed and controlled
branches located in the Cayman Islands or Nassau,
Bahamas (Cayman and Nassau branches). Managed and
controlled branches are those branches for which the U.S.
branch or agency files an FFIEC 002S (as defined in the
FFIEC 002S instructions). Report the activity of Cayman
and Nassau branches that meet the definition of significant in the ‘‘Rules of Consolidation’’ section of these
instructions. For Part B (Eurodollars) only, a U.S. branch
or agency of a foreign bank should include the managed
and controlled branch activity and report the transactions
of these branches on the FR 2420.
For an IBF (of a banking organization reporting on the
FR 2420), report all Eurodollar transactions executed on
the report date. The IBF is required to report all Eurodollar transactions of the IBF on a separate FR 2420
report.
Exclude transactions with:
• The IBF’s establishing entity or a related party of the
establishing entity.
• The IBF of an affiliate.

Items to Report

• Intraday transactions.

Dollar Amount

• Unsecured borrowings from retail counterparties.

Report the amount (in millions of dollars) of each
reportable Eurodollar transaction as of the date the trade
is executed (i.e., the date the terms are agreed on); even if
the funds are made available to the reporting institution
on a subsequent date.

How to Report
For U.S. depository institutions, report the Eurodollar
activity of offshore branches or offices (i.e., those located
in foreign countries) that meet the definition of significant in the ‘‘Rules of Consolidation’’ section of these
instructions.
FR 2420
Part B October 2015

If no transactions were executed on that day, report ‘‘0.’’
If no transactions were executed because the banking
organization was closed on the report date, report ‘‘0.’’
B-1

Part B

Trade Date

Counterparty Type

Report the trade date of each transaction in
YYYYMMDD format.

Enter one of the values listed below to describe the
counterparty to the transaction:

Settlement Date
Report the settlement date of each transaction in
YYYYMMDD format.

1. U.S. depository institution
2. Non-U.S. offıce of a U.S. depository institution
3. U.S. branch or agency of a foreign bank
4. Non-U.S. offıce of a foreign bank

Maturity Date

7. Non-depository financial institution

Report the maturity date of each transaction in
YYYYMMDD format.

9. Non-financial corporate entity

Interest Rate
Report the interest rate applicable to the transaction. The
interest rate should always be reported as a percent
expressed out to five decimal places with a leading zero
for interest rates less than one percent. Negative interest
rates are to be preceded with a ‘‘-’’ sign. For examples of
how to report interest rates, see the General Terms for
Reporting Data section within the General Instructions.

B-2

12. Other Entity
The definitions of the counterparty type values listed
above are provided in the Glossary.

Office Identifier
Report the RSSD ID of the overseas office that has
booked the transaction. The office reported should be the
office or branch that has the borrowing on its books
regardless of the location of the execution of the trade.

Part B

FR 2420
October 2015

LINE ITEM INSTRUCTIONS FOR

Time Deposits and Certificates of
Deposits (CDs)
Part C

This section contains specific line item instructions on
time deposits and CD transactions; henceforth referred to
as time deposits.

General Reporting Instructions for Time
Deposits (Part C)

Definition

Matching Terms: Each transaction should be reported
separately even when all terms of the time deposits
issued match.

Respondents should report all time deposits that are
booked in U.S. offices in U.S. dollars, denominated in
amounts of $1 million or more; and may be evidenced by
a negotiable or nonnegotiable instrument, or a deposit in
book entry form evidenced by a receipt or similar
acknowledgement issued by the bank, that provides, on
its face, that the amount of such deposit is payable to the
bearer, to any specified person, or to the order of a
specified person as follows:
a. On a certain date not less than seven days after the
date of deposit,
b. At the expiration of a specified period not less than
seven days after the date of the deposit, or
c. Upon written notice to the bank which is to be given
not less than seven days before the date of withdrawal.
All deposits that meet the criteria above and are executed
on the report date are reported.
Include:
• All time deposit transactions that are executed at
arm’s length.
Exclude from Part C:
• Market-linked CDs that use derivative transactions
as hedges.
• Unsecured borrowings reported in Part A, Part AA,
and Part B of the FR 2420.
• Time deposits and CDs that are issued as collateral
for another transaction (e.g., a CD issued as collateral for a loan).
FR 2420
Part C January 2016

Brokered Deposits: Transactions such as brokered deposits, where each deposit is placed by a third party after the
time deposit is issued, should be reported as one transaction.
Renewal of Existing Time Deposit: Report the renewal
of an existing time deposit on the day it becomes
outstanding with its new terms.
Floating Rate Time Deposits: For floating rate time
deposits, report only at inception regardless of changes in
the terms of the time deposit before its maturity.

Items to Report
Dollar Amount
Report the amount (in millions of dollars) of each
reportable time deposit transaction as of the date the trade
is executed (i.e., the date the terms are agreed on). The
dollar amount reported for each transaction is the amount
that is made available to the reporting institution.
If no transactions were executed on the report date, report
‘‘0’’ for the dollar amount. If no transactions were
executed because the banking organization was closed on
the report date, report ‘‘0’’ for the dollar amount.

Trade Date
Report the trade date of each transaction in
YYYYMMDD format.
C-1

Part C

Settlement Date

Floating or Fixed Rate

Report the settlement date of each transaction in
YYYYMMDD format.

If the time deposit has a floating rate, enter a value of 1. If
the rate is fixed, enter a value of 2.
1. Floating Rate

Maturity Date
Report the maturity date of each transaction in
YYYYMMDD format. In cases where the transaction
does not have a specific maturity date, (i.e. open trades),
enter 99991231. Open trades that are rolled over are to be
reported each day that the interest rate is changed.

Interest Rate
Report the interest rate applicable at the inception of the
transaction. The interest rate should always be reported
as a percent expressed out to five decimal places with a
leading zero if the interest rate is less than one percent.
Negative interest rates are to be preceded with a ‘‘-’’ sign.
For examples of how to report interest rates, see the
General Terms for Reporting Data section within the
General Instructions.
For floating rate time deposits with a reference rate,
report the interest rate (including any spread) applicable
at the inception of the transaction. If the effective interest
rate at the inception of the transaction cannot be calculated, report zero.

2. Fixed Rate
Time deposits with a reset to a predetermined interest
rate are reported as fixed rate.

Step-Up Indicator
If the fixed rate time deposit resets to a predetermined
interest rate, enter Y. If there is no interest rate step-up,
enter N. If the time deposit has a floating rate, enter NA.
Y - Yes
N - No
NA - Not Applicable (floating rate time deposit)

Reset Period
Enter the value below to describe the frequency for when
the interest rate for the reported time deposit can reset.
0. No Reset
1. Weekly
2. Monthly
3. Quarterly

Spread
If the interest rate for a floating rate time deposit is
determined by the value of the reference rate PLUS or
MINUS a spread, report the amount of the spread in
percent terms, expressed to two decimal places with a
leading zero if the spread is less than 100 basis points.
• Example 1: If the floating rate is referenced to
1 month LIBOR plus 30 basis points, report the
spread as 0.30.
• Example 2: If the floating rate is referenced to
1 month LIBOR minus 30 basis points, report the
spread as -0.30.
• Example 3: If the floating rate is referenced to
1 month LIBOR plus 125 basis points, report the
spread as 1.25.
C-2

4. Semi-annually
5. Annually
6. Other
7. Daily
For time deposits with a reset to a predetermined interest
rate, enter the value to describe the frequency for when
the rate is reset.
For time deposits that reset to a predetermined interest
rate multiple times during the term of the deposit, if the
interest rate is reset at different time intervals, enter a
value of 6 (Other).
• Example: If a time deposit with an interest rate at
inception of 1.0%, resets in one month to 1.12%, and
then resets to 1.25% in three months, enter a value of
6 (Other).
Part C

FR 2420
January 2016

Part C

Reference Rate (If Floating)

The embedded options listed above are defined below.

If the time deposit has a floating rate, enter the value
below to describe the reference rate. If the floating rate is
determined by the value of the reference rate PLUS or
MINUS a spread, enter the value below to describe the
underlying reference rate.

1. Callable

0. NA

A callable CD or time deposit contains an embedded
option or provision in the deposit agreement or contract
that gives the issuer (depository institution) a call option.
The call option gives the issuer (depository institution)
the right to redeem or close the CD or time deposit for the
full amount prior to maturity or before the term ends at
any time or under specified conditions.

1. Federal Funds Effective Rate

2. Puttable

2. Prime Rate

A puttable CD or time deposit contains an embedded
option or provision in the deposit agreement or contract
that gives the counterparty (depositor) a put option. The
put option gives the counterparty (depositor) the right to
early withdrawal of a portion, an amount specified by the
option, or all of the funds with or without penalty at a
specified time or at any time prior to maturity or before
the term ends.

If the time deposit has a fixed rate, enter a value of 0.

3. One Month U.S. Treasury Constant Maturity Rate
4. One Month LIBOR
5. Three Month LIBOR
6. Overnight Swap Index
7. Other

Negotiable

3. Extendible

Y - Yes

An extendible CD or time deposit contains an embedded
option or provision in the deposit agreement or contract
that gives the counterparty (depositor) the right to extend
the maturity of the deposit at the same terms.

N - No

4. Other

If the deposit is negotiable, enter Y for the value. If the
deposit is non-negotiable, enter N for the value.

Embedded Options
For Part C (Time Deposits and Certificates of Deposit),
an embedded option is an option or provision in the
deposit agreement or contract that gives either the issuer
(depository institution) or the counterparty (depositor)
the right to take a specific action(s) under specified
conditions.
For time deposits with embedded options enter the value
below to describe the option. If the time deposit does not
have an embedded option, enter 0 (not applicable) for the
value.

Any embedded option that does not fall into one of the
categories above.

Counterparty Type
Enter one of the values listed below to describe the
counterparty to the transaction:
1. U.S. depository institution
2. Non-U.S. offıce of a U.S. depository institution
3. U.S. branch or agency of a foreign bank
4. Non-U.S. offıce of a foreign bank

0. NA

7. Non-depository financial institution

1. Callable

9. Non-financial corporate entity

2. Puttable
3. Extendible
4. Other

FR 2420
Part C January 2016

12. Other entity
The definitions of the counterparty type values listed
above are provided in the Glossary.

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Glossary

Affiliates and Intercompany (Related
Parties)

• The bank’s head office.

Transactions between the reporting institution and its
affiliates are excluded from all parts of the FR 2420. All
intercompany transactions (those with related parties) are
excluded from all parts of the FR 2420.

• All Intra-desk trades.

Affiliates
For domestic banks, affiliates include:
• The reporting institution’s bank holding company.
• The bank subsidiaries of the reporting institution’s
bank holding company.
• The nonbank subsidiaries of the reporting institution’s bank holding company.
For U.S. branches and agencies of foreign banks, affiliates include:
• The reporting institution’s foreign parent bank.
• The other U.S. branches and agencies of the reporting institution’s foreign parent bank.
• The bank subsidiaries of the reporting institution’s
foreign parent bank.
• The nonbank subsidiaries of the reporting institution’s foreign parent bank.
• The holding company of the foreign parent bank.
• The bank subsidiaries of the holding company of the
foreign parent bank.
• The nonbank subsidiaries of the holding company of
the foreign parent bank.

Intercompany (Related Parties)
For domestic banks, intercompany transactions include
those with:
FR 2420
Glossary October 2015

• All domestic branches of the bank.
• Any IBF established by the bank.
• All majority-owned Edge and Agreements subsidiaries, including their IBFs, their foreign and domestic branches, and their significant subsidiaries.
• All other majority-owned subsidiaries, including
domestic subsidiaries that are commercial banks,
savings banks, or savings and loan associations.
For U.S. branches and agencies of foreign banks, intercompany transactions include those with:
• Any IBF established by the branch; and
• All entities in which the branch has a direct or
indirect ownership interest of more than 50 percent
of an entity’s outstanding voting shares.

Arm’s length transactions
An arm’s length transaction is a transaction in which the
buyers and sellers act independently. For purposes of the
FR 2420, only arm’s length transactions should be
reported. Transactions that are not executed at arm’s
length are excluded from the FR 2420. For example,
borrowings that are collateral for other transactions (e.g.,
a CD issued as collateral for a loan) are excluded from
the FR 2420.

Brokered deposit
Brokered deposits represent funds which the reporting
bank obtains, directly or indirectly, by or through any
deposit broker for deposit into one or more deposit
accounts. Brokered deposits include both those in which
the entire beneficial interest in a given bank deposit
account or instrument is held by a single depositor and
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Glossary

those in which the deposit broker sells participations in a
given bank deposit account or instrument to one or more
investors.
For purposes of the FR 2420, each individual brokered
deposit is reported as one transaction. Do not report the
banking organization’s entire portfolio of brokered deposits as one transaction.

Counterparty Type
For each Part of the FR 2420 report, the counterparty
type for each transaction is reported. The numerical value
assigned to each counterparty type is used where relevant
across all the Parts of the report; therefore the numerical
value and counterparty type description are consistent
across all Parts of the report.

• For the FR 2420 report, the counterparty definition
of U.S. depository institution excludes U.S. branches
and agencies of a foreign bank located in the United
States, which are reported as a distinct counterparty
type (see counterparty type 3 below).
2. Non-U.S. office of a U.S. depository institution
A non-U.S. office of a U.S. depository institution refers to
any branch or office of a U.S. depository institution that is
located in a foreign country.
3. U.S. branch or agency of a foreign bank
• U.S. branches of foreign banks include any offices or
places of business of foreign banks that are located
in the United States at which deposits are accepted.

— National banks,

• U.S. agencies of foreign banks include any offices or
places of business of foreign banks that are located
in the United States at which credit balances are
maintained incidental to or arising out of the exercise of banking powers but at which deposits may
not be accepted from citizens or residents of the
United States.

— State-chartered commercial banks,

• IBFs of U.S. branches and agencies of foreign banks.

1. U.S. depository institution
Depository institutions in the United States consist of:
• U.S. head offices and branches of U.S. banks including:

— Trust companies that conduct a commercial
banking business,
— Industrial banks,
— Private or unincorporated banks,

4. Non-U.S. office of a foreign bank
A non-U.S. office of a foreign bank refers to any branch
or office of a foreign bank that is located in a foreign
country.

— Banking Edge Act and Agreement corporations,
and

• A non-U.S. office of a foreign bank includes all
foreign head offices.

— IBFs of U.S. banks; and

• A non-U.S. office of a foreign bank includes all
foreign branches and offices.

• U.S. head offices and branches of other depository
institutions in the U.S. including:
— Mutual or stock savings banks,
— Savings or building and loan associations,
— Cooperative banks,
— Credit unions (including corporate central credit
unions),
— Homestead associations,
— Other similar depository institutions in the U.S.,
and

• Foreign (non-U.S.) bank: A foreign bank is defined
as a bank chartered and headquartered in a foreign
country (including foreign banks owned by U.S.
nationals and institutions). A foreign bank is organized under foreign (non-U.S.) law. A foreign bank
includes banking entities such as but not limited to
commercial banks, merchant banks, discount houses,
and similar depository institutions, including nationalized banks that perform essentially a banking
business and do not perform, to any significant
extent, official functions of foreign (non-U.S.) governments.

— IBFs of other depository institutions in the U.S.
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Glossary

FR 2420
October 2015

Glossary

5. Non-depository financial institution that is defined
as an exempt entity
For Federal Funds (Part A), the counterparty definition of
non-depository financial institution is limited to only
those institutions that are also exempt entities, as defined
in Regulation D. This includes but is not limited to the
following:
• Investment companies whose entire beneficial interest is held exclusively by one or more depository
institutions,
• Trust companies whose principle function is to
accept and execute trust arrangements or act in a
purely fiduciary capacity and whose entire beneficial
interest is held exclusively by one or more depository institutions,
• New York State investment companies (chartered
under Article XII of the New York State Banking
Code) that perform a banking business and that are
majority owned by one or more non-U.S. banks, and
• Government Development Bank of Puerto Rico.
6. Non-depository financial institution that is defined
as a non-exempt entity
For Selected Borrowings from Non-exempt entities (Part
AA), the counterparty definition of non-depository financial institution is limited to only those institutions that are
also non-exempt entities, as defined in Regulation D.
This includes but is not limited to the following:
• Holding companies of other depository institutions,
• Insurance companies,
• Investment banks,
• Security dealers wherever located, when the unsecured borrowing is not in connection with the clearance of securities,
• Real estate investment trusts, mortgage companies
that specialize in mortgage loan originations and
warehousing or in mortgage loan servicing,
• Finance companies, mortgage finance companies,
factors and other financial intermediaries, short-term
business credit institutions that extend credit to
finance inventories or carry accounts receivable, and
institutions whose functions are predominantly to
finance personal expenditures,
FR 2420
Glossary October 2015

• Other domestic and foreign financial intermediaries
whose functions are predominantly the extending of
credit for business purposes, such as investment
companies that hold stock of operating companies
for management or development purposes, and
• Small Business Investment Companies.
7. Non-depository financial institution
This includes but is not limited to:
• Holding companies of other depository institutions,
• Insurance companies,
• Investment banks,
• Real estate investment trusts, mortgage companies
that specialize in mortgage loan originations and
warehousing or in mortgage loan servicing,
• Finance companies, mortgage finance companies,
factors and other financial intermediaries, short-term
business credit institutions that extend credit to
finance inventories or carry accounts receivable, and
institutions whose functions are predominantly to
finance personal expenditures,
• Other domestic and foreign financial intermediaries
whose functions are predominantly the extending of
credit for business purposes, such as investment
companies that hold stock of operating companies
for management or development purposes, and
• Small Business Investment Companies.
8. U.S. government-sponsored enterprise that is
defined as an exempt entity
U.S. government-sponsored enterprises or GSEs (also
referred to as federally-sponsored agencies or entities)
are entities that have been originally established or
chartered by the U.S. Government to serve public purposes specified by the United States Congress but whose
debt obligations are not explicitly guaranteed by the full
faith and credit of the U.S. Government. Included in this
counterparty definition are federally-sponsored lending
agencies which are agencies or corporations that have
been chartered authorized, or organized as a result of
federal legislation for the purpose of providing credit
services to a designated sector of the economy.
U.S. government-sponsored enterprises that are defined
as exempt entities, which are defined in Regulation D,
include but are not limited to:
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Glossary

• Federal Agricultural Mortgage Corporation (Farmer
Mac),
• Federal Farm Credit Banks,
• Federal Home Loan Banks (FHLBs),
• Federal Home Loan Mortgage Corporation (FHLMC
or Freddie Mac),
• Federal Land Banks (FLBs),
• Federal National Mortgage Association (FNMA or
Fannie Mae),
• Financing Corporation (FICO), and
• Resolution Funding Corporation (REFCORP).

• U.S. government-sponsored enterprises or GSEs
(also referred to as federally-sponsored agencies or
entities).

Federal Home Loan Bank (FHLB)
Advances:
An FHLB advance is a loan that is (1) provided pursuant
to a written agreement; (2) supported by a note or other
written evidence of the borrower’s obligation; and (3)
fully secured by collateral in accordance with the Federal
Home Loan Bank Act and 12 C.F.R. Part 950.

Fixed and Floating Interest Rates:

9. Non-financial corporate entity

Fixed Interest Rate

A non-financial corporate entity refers to commercial
entities, including partnerships and corporations wherever located, that are not owned by central governments,
local governments or local authorities with revenueraising powers, and that are non-financial in nature (i.e.,
do not meet the definition of either a depository institution or a non-depository financial institution provided
above).

A CD or time deposit with a fixed interest rate has a rate
that is specified at the origination of the transaction, is
fixed and invariable during the term, and is known to
both the borrower and the lender.

10. Other exempt entity
Other exempt entity includes any counterparty that is an
exempt entity that does not fall into one of the above
counterparty types.
11. Other non-exempt entity
Other non-exempt entity includes any counterparty that is
a non-exempt entity, as defined in Regulation D, which
does not fall into one of the above counterparty definitions. This includes but is not limited to:
• Retail counterparty, specifically an individual or a
natural person wherever located; and
• State and local governments in the United States and
their political subdivisions.

Also treated as having a fixed interest rate is a CD or time
deposit with a predetermined interest rate which is a rate
that changes during the term of the CD or time deposit on
a predetermined basis (i.e., there is a predetermined reset
at which time the interest rate changes to a predetermined
rate which was set at origination). The exact rate of
interest over the life of the CD or time deposit is known
with certainty to both the borrower and the lender at the
origination of the CD or time deposit.
Floating Interest Rate
A CD or time deposit with a floating rate has a rate that
varies, or can vary, in relation to an index, to some other
interest rate such as the rate on certain U.S. Government
securities or the ‘‘prime rate,’’ or to some other variable
criterion the exact value of which cannot be known in
advance. Therefore, the exact rate the CD or time deposit
carries at any subsequent time cannot be known at the
time of origination.

12. Other Entity
This encompasses any counterparty that does not fall into
one of the above counterparty definitions. This includes
but is not limited to:

Forward Starting Transactions:
Forward starting transactions are transactions that do not
settle until a future date.

• Retail counterparty, specifically an individual or a
natural person wherever located;

Negotiable time deposit:

• State and local governments in the United States and
their political subdivisions; and

A negotiable time deposit is a deposit of large value that
can be purchased and sold. The holder of the deposit can

GL-4

Glossary

FR 2420
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Glossary

sell it to a third party; and the deposit cannot be redeemed
before it has reached full maturity (without penalty) even
if the deposit is sold.

Retail Counterparty:
Retail counterparty refers to a counterparty who is a
natural person.

Non-negotiable time deposit:
A non-negotiable time deposit cannot be purchased and
sold.

Open Trades:
Trades with no specific maturity date. An open trade is a
contract or agreement that remains in effect for more than
one business day, but has no specified maturity and does
not require advance notice of either party to terminate.
Such contracts may also be known as open-ended agreements, rollovers, or continuing contracts.

FR 2420
Glossary October 2015

Settlement Date:
The settlement date is the date on which a financial
transaction is settled and monies from the transaction are
available to the banking organization.

Trade Date:
The trade date is the date on which the terms of the trade
are agreed upon.

GL-5