CFTC Form 1-FR-IB Instructions - National Futures Association

Overdrafts
Bank overdrafts are not to be netted against balances in accounts
with other banks. Such overdrafts should be reported on page 3, line
14. The IB should type in "(Overdraft)" after "Loans payable",
Overdrafts can be netted against debit balances in other accounts
carried at the same bank, providing the bank has the absolute right to
offset the balances in such accounts.
Line 2. - Securities
Marketable securities held by an IB must be reflected at current
market value. Securities which are not readily marketable or which are
restricted as to their transferability should be reported as a
noncurrent asset.
If securities are on deposit with a futures commission merchant
or foreign broker, they should be included on line 4.A and not on line
2.
An IB should be familiar with the percentage haircuts applicable
to securities. The haircuts are in SEC's rule 240.15c3-1(c)(2)(vi).
They are reproduced in Appendix B to these instructions. The haircuts
do not apply to accrued interest on a securities position.
Line 3. - Securities purchased under resale agreements
Securities purchased under reverse-repurchase agreements should
be reflected as a current asset in an amount equal to the funds
initially disbursed, plus interest accrued on the position.
Obligations resulting from repurchase transactions should be reflected
as a liability on page 3, line 18, and should not be netted against
reverse repurchase agreements. The charges applicable to reverse
repurchase agreements are specified in Appendix A to these
instructions. Any applicable haircut should be reflected on page 4,
line 7.A.
Example begins on next page.