COST BASIS REPORTING SERVICE CBRS USER GUIDE

Transcription

1 COST BASIS REPORTING SERVICE CBRS USER GUIDE VERSION 7.0 JANUARY 24, 2018

2 TABLE OF CONTENTS 1. About This User Guide General Information... 9 Scope of the System: Transfer of Information Only...9 Basic Functionality: Input...9 Input Record Content Indicator Types Original Asset and Tax Lot records form a package Package rule applies to Corrected records, too Exceptions to Package rule: Firm Reject and Request records Association of Asset and Tax Lot records Basic Functionality: Output Output available through both automated connection and DTCC web portal Eligibility for CBRS User Eligibility Cost Basis User Master File Asset Eligibility Both Covered and Noncovered Securities are Eligible Application Input and Output Input and Output timing General Record Layout Information Filler fields Using CBRS for cost basis information in non-us Currency Input General Information Transfer Control Number Firm Reject Record Firm Number and Type vs. Customer Account Number fields Contra Firm Number Contra Firm Type Numeric fields... 32

3 Asset Category field Sum of the tax lot quantities must match the asset quantity Optional fields Borrowed Position Code ACATS Asset Sequence Number Output General Information Distribution Side Cost Basis Control Number System Rejects System Action field System Reject Reason field Status Fields Example of System Changed Example of System Rejected Output Dropped Records LPA Number and LPA Type Best Practice s Resolve issues with the contra party Firms should both submit and receive records When should a firm send the CBRS record? Corrected Record Some Scenarios about Corrected Records Firm Reject and Request Records Do not Request Basis for Lots Received with Unknown Basis Submitting and Receiving Noncovered Accounts and Noncovered Security Types Covered Fixed Income Assets that were transferred in The CBRS Quantity should equal the Original Asset Transfer Quantity, i.e. Avoid Fractional Shares Populating CBRS Records for ACATS Reclaim or Fail Reversal Transactions Sending a CBRS Record for an Asset Held in Multiple Currencies Sending Cost Basis for an Invalid Certificate... 45

4 Field Specific Best Practices Transaction Type (A/T) Transfer Control Number (A/T) Alternate Control Number (A/T) Asset Description (A/T) Asset Category (A) Transferring Basis on Rights or Warrants Receiver Customer Account Number (A/T) Deliverer Customer Account Number (A/T) Total Position Quantity/Tax Lot Quantity (A/T) Date Transfer was Initiated and Settlement Date of Transfer (A) Disposition Method Used (A) Shares to Cover Short Indicator (A) Noncovered/Pending Indicator (T) Taxes Reported by Issuer/Transfer Agent (T) Gifted or Inherited Indicator (T) Fair Market Value as of Date of Gift (T) Position Code (T) Position Code for Options (T) Populating Acquisition Date of Tax Lot field when Date is Unknown (T) Original Acquisition Date for Wash Sale Adjustment (T) Wash Sale Adjustment Amount (T) Exchange Rate (T) Tax Lot Original Cost (T) Tax Lot Current Cost (T) Zero Basis Indicator (T) Tax Lot Original Unit Price (T) Employee Plan Shares Indicator (T) Fields for Fixed Income Elections (T) Purchase/ Dividend Reinvestment Indicator (T)... 54

5 Market Discount (T) Bond Premium (T) Acquisition Premium (T) Accrued OID (T) Last Adjustment Date (T) Carryover Offset (T) Prior Year Mark to Market (T) Settlement Date (T) Accrued Unrealized Market Discount (T) File Input and Output via Common Data Transfer Service (CDTS) General Information File Input File Output: Transaction MRO File Output: Cost Basis User Master File MRO Limits on when Output Files and Data are Available Input and Output Timing CBRS Application Output Header CBRS Application Output Trailer CBRS and DTCC Web Portal DTCC Web Portal Workflow Logging on to the system Creating Transactions Working with Pending Transactions Adding More Assets to a Transaction Adding More Tax Lots to a Transaction Listing and Searching Pending Transactions Deleting Transactions Deleting transactions from the Transfer List Deleting transactions from the Transfer Information Update page Editing Transfer Information, Asset Records, and Tax Lot Records... 81

6 Viewing and Updating Transfer Information Viewing and Updating Assets Deleting Assets Viewing and Updating Tax Lots Deleting Tax Lots Working With Batches Sending a Batch to DTCC Verifying That Your File Was Sent Successfully (Using the Confirms Utility) Resending a Batch Uploading Records to CBRS Overview of the Upload process Start With the Most Recent Spreadsheet Template For earlier versions of MS Excel Spreadsheet Template column headers The Spreadsheet at a Glance Adding an Asset with One Tax Lot Adding an Asset with Multiple Tax Lots Adding Multiple Asset Records Adding an Asset without a Tax Lot (Firm Reject and Request Records Only) Example Spreadsheets Example One: An Asset With One Tax Lot Example Two: An Asset With Multiple Tax Lots Example Three: Multiple Asset Records Uploading the Spreadsheet Displaying Records Uploaded via Spreadsheet Modifying Uploaded Information Verifying That Your File Was Sent Successfully (Using the Confirms Utility) Reviewing and Correcting Spreadsheet Errors Errors You Will See Immediately Upon Submission Errors You Will See After End-of-Day Processing

7 Searching CBRS Transactions Quick Search Advanced Search Displaying Asset and Tax Lot Details Searching for a CBRS User Searching for an Active CBRS Account Searching for an Inactive CBRS Account Downloading Cost Basis Files Size Limit for Transaction Download Files Time Frames for Files and Data Availability DTCC Web Portal Data Entry on Weekends and Holidays Joining the Service Multiple Output File Set-up CBRS Billing User Testing Testing Data Input Testing Data Output Details about testing the Daily Deposit File for Transfer Agents Canned Transaction Output File Appendix A: List and De scription of File Identification Numbers CBRS Input SYS ID Numbers List of CBRS Output File Identification Numbers Description of the CBRS Output Files Appendix B: List of Valid Characters for CBRS Disclaimer and Copyright Notice

8 1. ABOUT THIS USER GUIDE The enhanced Cost Basis Reporting Service (CBRS) mitigates potential endless paper trails, added costs and more operational risk associated with transferring cost basis information manually. The previous version of CBRS allowed financial firms to pass customer cost basis information on assets transferred through DTCC s Automated Customer Account Transfer Service (ACATS). The current service extends its efficiencies and capabilities to equity transfer agents and issuers, mutual funds, custodian banks and broker/dealers to pass cost basis information from one financial firm to another for all assets transfers. This User Guide provides details of CBRS and its functionality. Also included in this User Guide are general descriptions of businesses processes and information flow in CBRS. The guide assumes that the user has prior securities industry experience and a basic knowledge of cost basis terminology and processing, and of Microsoft Excel. Changes after the 6.0 edition are indicated in red. Version Date Author Notes Sections Edited 3.0 Sept Lydia Midwood Source document 4.0 Sept Janice DiTore Additions to Sections 3 (p.15); 4 (p.25); 5 (p.43), (p.45); 7 (p ) 4.1 March 2015 Janice DiTore Section 3 (p.21); Section 5 (p.43), (p.54-59) 5.0 April 2015 Janice DiTore Section 5 (p.46), 5 (p.52-53), 5 (p.55-58) 5.1 May 2015 Janice DiTore Section 5 (p.52) 5.2 Aug Janice DiTore Section 5 (p.52), (p.53-59) 5.3 Oct Janice DiTore Section 5 (p.57) 5.4 Nov Janice DiTore Section 5 (p.58) 6.0 Dec Korosh Major Section 5 (p.59) 7.0 Jan Korosh Major Section 3 (p.16); Section 4 (p.29-32); Section 5 (p.46), (p.53), (p.54) About This User Guide 8

9 2. GENERAL INFORMATION The Depository Trust & Clearing Corporation (DTCC) initially launched the Cost Basis Reporting Service (CBRS) in 2003 to enable firms to pass cost basis on assets transferred via the Automated Customer Account Transfer Service (ACATS). In October 2008, the United States Congress passed a law requiring firms to not only report cost basis information to investors and the U.S. Internal Revenue Service, but to also pass cost basis information between financial intermediaries when assets move from one firm to another. As a result, DTCC enhanced CBRS to help firms comply with this legislation. DTCC works with a cross functional committee with members from different segments of the industry: broker-dealers, banks, transfer agents, mutual fund companies, and service bureaus to define the system s functionality and record layouts. Since many different parties are affected by the legislation, DTCC seeks the input of these parties to make sure the system meets their cost basis passage needs. CBRS supports the passage of cost basis in many different types of asset transfers, such as Depository Trust Company (DTC) deliver orders, DTC deposits and withdrawals, and ACATS/FundSERV and Networking transactions, in addition to supporting basis transfers for ACATS transfers as it did in the previous version of the system. System capabilities include enhanced functionality over the internet: firms can perform the same tasks via DTCC web portal that are available via the computer to computer connection. Scope of the System: Transfer of Information Only CBRS supports the transfer of cost basis information from one financial intermediary to another. CBRS does not tell users what transactions trigger the need to pass cost basis, or when to send the basis. CBRS does not provide any reconciliation capabilities between expected and received records. Also, CBRS does not calculate cost basis. Basic Functionality: Input CBRS has two input record types: Asset records and Tax Lot records. A firm submits an Asset record for each asset for which it needs to pass cost basis information. The Asset record must have at least one, but can have many, associated Tax Lot records. Tax Lot records contain detailed cost basis information for each Asset record. CBRS receives the cost basis records from a computer to computer automated connection or through data input via the internet-based DTCC web portal. For the most part, the record types correspond to the deliverer and receiver of the security in the transaction that triggered the need to pass cost basis. The deliverer of the security submits an Original or Corrected record, and the receiver of the security submits a Firm Reject or a Request record, as needed. The one exception is the transfer of a short position (See Figure 2 for information flow on the transfer of a short position). General Information 9

10 Figure 1 illustrates how cost basis information flows through CBRS when the original transfer was the transfer of a long position. Original Asset Record Deliverer of security Corrected Asset Record Firm Reject Asset Record Receiver of security Request Asset Record Figure 1. How information flows on the passage of cost basis on the transfer of a long position. When a short position moves from one firm to another, the deliverer of the short position is the receiver of the security, and the receiver of the short position is the deliverer of the security. Also, the deliverer of the short position passes the cost basis to the receiver of the short position. General Information 10

11 Figure 2 illustrates the information flow of the transfer of cost basis for a short position. Original Asset Record Deliverer of short position = Receiver of security Corrected Asset Record Firm Reject Asset Record Receiver of short position = Deliverer of security Request Asset Record Figure 2. How information flows on the passage of cost basis on the transfer of a short position. Input Record Content Indicator Types CBRS input records have four different types: original, corrected, firm reject, and request. The Asset record includes all four types, and the Tax Lot record has only original and corrected record types. Original asset record/original tax lot record: the primary record used to transfer the cost basis information. Corrected asset record/corrected tax lot record: a submitter can use the corrected record type to tell the receiver the cost basis information has changed since the original record was sent. Firm reject record (Asset level only): the receiver of the cost basis can use this type of record to let the submitter of the cost basis know that there is a problem with the information. The firm reject record is different from a system reject a system reject occurs when some of the submitted information is rejected by the CBRS software. For example, if the submitter populates one of the date fields with 01/35/2012, CBRS will reject the record because a date of January 35, 2012 is not possible. Request record (Asset level only): the asset receiver can use this type of record to request cost basis from the asset deliverer. General Information 11

12 The table below summarizes the relationship between the asset deliverer and receiver for a long position and the CBRS record submitter and receiver. Record content type Record submitter Record receiver Original Asset deliverer Asset receiver Corrected Asset deliverer Asset receiver Firm reject Asset receiver Asset deliverer Request Asset receiver Asset deliverer Original Asset and Tax Lot records form a package The Asset record and its corresponding Tax Lot record(s) are a package. The Original and Corrected Asset data in the input file must consist of the Asset record followed by at least one Tax Lot record. CBRS rejects back to the submitter any Asset record not followed by a Tax Lot record(s). Tax Lot records that do not follow an Asset record are assigned a separate Cost Basis Control Number and rejected by the system. The sum of the tax lot quantities must equal the quantity of the asset record, or CBRS rejects the package. Package rule applies to Corrected records, too A submitter must send all the tax lots for a corrected record, even if only one tax lot is corrected. For original and corrected records, the submitter must always send an asset record with all its corresponding tax lot records. CBRS looks at the asset and tax lot records as a package. If the package is not intact, CBRS rejects it. Exceptions to Package rule: Firm Reject and Request records The Firm Reject and Request record content types exist only at the asset level, not the tax lot level. For these two record content types, there are no corresponding tax lot records. Association of Asset and Tax Lot records For all types of assets except options (Asset Category = OPT) and for all Transaction Types except 41 = Direct Presentation, CBRS establishes the association between the Asset and the Tax Lot record when the contents of these fields on the two records are equal: Transfer Control Number Contra Firm Number Contra Firm Type Submitting Firm Number Submitting Firm Type Receiver Customer Account Number Deliverer Customer Account Number ISIN Country Code General Information 12

13 ISIN Security Issue ID ISIN Security Check Digit For option assets, CBRS establishes the association between the Asset and the Tax Lot record when the contents of these fields on the two records are equal: Transfer Control Number Contra Firm Number Contra Firm Type Submitting Firm Number Submitting Firm Type Receiver Customer Account Number Deliverer Customer Account Number Put/Call Indicator Option Symbol Option Expiration Date Option Strike Price Integer Option Strike Price Decimal For Transaction Type 41 = Direct Presentation when the asset is not an option, CBRS establishes the association between the Asset and the Tax Lot record when the contents of these fields on the two records are equal: Transfer Control Number Contra Firm Number Contra Firm Type Submitting Firm Number Submitting Firm Type Receiver Customer Account Number Deliverer Customer Account Number ISIN Country Code ISIN Security Issue ID ISIN Security Check Digit, unless ISIN Security Issue ID is blank. In this case, CBRS uses the Asset Description instead of the ISIN Country Code, ISIN Security Issue ID, and ISIN Security Check Digit to associate the Asset and Tax Lot record. Basic Functionality: Output CBRS edits the input data, runs an end-of-day batch process to validate and produce output files, and returns the validated data to the appropriate firms. Below are the steps CBRS takes to produce its output: Four times a day, CBRS collects all of the input files available at that time and runs a preliminary data edit process. During this cycle processing the system performs the following tasks: General Information 13

14 Assigns a unique Cost Basis Control Number to each asset and its tax lots Validates that the contra firm is a valid CBRS user Validates that the submitting firm is a valid CBRS user Performs other basic validation of the input fields, such as editing of the input record length, and verifying that each field value contains valid and printable characters Based on this validation, the system may preliminarily accept the records, reject them, or drop them After 4:00 PM, CBRS runs an end-of-day batch process. At this time the system performs an in-depth edit of cost basis data received today by applying all established validation rules. CBRS sends accepted cost basis records to the submitting and contra firm. CBRS sends rejected cost basis records to the submitting firm only. Output available through both automated connection and DTCC web portal Output files are available through both the automated computer-to-computer connection and/or via DTCC web portal. Regardless of how a submitter enters data into the system, the entire receiver s data is in one file that is available for retrieval via either of the methods. Please note that the data is not automatically available through both methods: users must subscribe to either. General Information 14

15 3. ELIGIBILITY FOR CBRS User Eligibility Each user that participates in CBRS is assigned a CBRS Account Number. DTCC will link existing DTC, NSCC or transfer agent numbers to the CBRS account number. CBRS data submitted by or to an ineligible user is rejected. All financial intermediaries subject to the new IRS regulations are eligible to apply to use CBRS, including users who are not currently members of any service offered by one of DTCC s affiliate companies. Cost Basis User Master File To assist firms in identifying eligible users, the Cost Basis User Master File is available on a daily basis by 11 PM eastern time. This file lists eligible CBRS counterparties: by referring to this file before submitting a record, CBRS users can significantly reduce the number system rejects caused by cost basis records sent to ineligible counterparties. The record layout for the Cost Basis User Master File is located in the CBRS Technical Documents area of the DTCC Learning website. (Registered Learning Center users will need to be logged in to access the file.) The Machine Readable Output (MRO) file is a flat file. The DTCC web portal download file is a *.csv file. The Cost Basis User Master File has a CDTS header. It does not have a CBRS application header or CBRS application trailer. Record Layout Fields The record layout for the Cost Basis User Master File has the following fields (please see the section below titled Active/Inactive functionality for a further explanation of how the various fields in the User Master File should be used): CBRS User Account Number: Each user who signs up for CBRS is assigned a CBRS User Account Number. However, in most cases this is not the primary number that identifies a firm. The Active Firm Number, which corresponds to a firm s DTC Participant Number, NSCC Participant Number, or Transfer Agent Number, is the number to use in the Receiving and Submitting Firm Number fields in CBRS data input and output. The only time the CBRS User Account Number is the primary identification number of a firm is when that firm is not a DTC Participant, nor an NSCC Participant, nor a Transfer Agent. CBRS Account Name: this field contains the name of the user. Active Firm Number: the number of the CBRS user who is the active user of the system (the user s DTC, NSCC, or Transfer Agent (TA) number; or CBRS account number if the user does not have a DTC, NSCC, or TA number). This is the primary number that identifies the Receiving and Submitting Firms in CBRS data input and output (See the Receiving and Submitting Firm Numbers section below for more information). The Cost Basis Steering Committee, that advises DTCC on the design on the system, Eligibility for CBRS 15

16 recommended that firms be able to use their existing DTC Participant, NSCC Participant, or Transfer Agent Numbers when processing data in CBRS. This number varies based on Active Firm Type: o When Active Firm Type is NSCPRT, this number is the NSCC Participant Number o When Active Firm Type is DTCPRT, this number is the DTC Participant Number o When Active Firm Type is AGTNBR, this number is the Transfer Agent Number o When Active Firm Type is CBRACT, this number is the CBRS User Account Number Active Firm Type: the type that corresponds to the Active Firm Number. Because there is some overlap between NSCC Participant Numbers, DTC Participant Numbers, and Transfer Agent Numbers, this file includes an Active Firm Type so the system can determine the type of number populated in the Active Firm Number field. Values: o AGTNBR = Transfer Agent o DTCPRT = DTC Participant o NSCPRT = NSCC Participant o CBRACT = CBRS-only user CBRS Account Start Date: the date the firm is eligible to participate in CBRS in the production environment. Exempt Recipient Accounts Indicator with two values: Y/N. This field allows CBRS users to indicate whether they want retirement accounts excluded from the basis they receive. The field values mean the following: o Y: Exclude retirement accounts from basis sent to this user o N: Do not exclude retirement accounts from basis sent to this user. N is the default value for this field. Search Firm Number: the number of the CBRS user associated with the Active Firm Number. In most cases, this number is the same as the Active Firm Number. In the instances when an active CBRS user has assumed cost basis responsibility for a CBRS user who has become inactive, this number is the number of the inactive Firm (the inactive user s DTC, NSCC, or Transfer Agent (TA) number; or CBRS account number if the user does not have a DTC, NSCC, or TA number). Search Firm Type is the type that corresponds to the Search Firm Number. Values: o AGTNBR = Transfer Agent o DTCPRT = DTC Participant o NSCPRT = NSCC Participant o CBRACT = CBRS-only user o DTCOCC = DTC Participant who is also an OCC Member o DTCFED = DTC Participant who is also a FED Member o NSCAIP=AIP Participant who is also a NSCC Member In the instances when an active CBRS user has assumed cost basis responsibility for another CBRS user who has become inactive, this type is the type of the inactive Firm. Active/Inactive Indicator: indicates whether the record corresponds to an active or inactive CBRS user. o If the user is active, a CBRS user can populate the Contra Firm Number and Contra Firm Type fields with either the Active Firm Number and Active Firm Type or the Search Firm Number and Search Firm Type. o If the user is inactive, a CBRS user must populate the Contra Firm Number and Contra Firm Type fields with the Active Firm Number and Active Firm Type. CBRS system rejects records sent to the Search Firm Number and Search Firm Type in this scenario. Eligibility for CBRS 16

17 Active/Inactive Functionality The CBRS User Master File s active/inactive functionality helps to reduce the manual processing that occurs when a user becomes ineligible for CBRS when its CBRS account closes as the result of events such as a merger or bankruptcy. When a user becomes ineligible for CBRS and another user assumes the ineligible user s accounts, the active/inactive functionality allows an active CBRS user to indicate that it should receive CBRS records on behalf of an inactive user. This functionality works in the case where one user assumes responsibility for all of another user s accounts: it does not work in the case where one user s business goes to two or more other users. A CBRS user can use the Search Firm Number/Type combination as the first place to look for the number of a CBRS contra party. Once a user locates the contra party s number, that user looks to the Active/Inactive indicator. If the contra party is active, a user can send the CBRS record either to the Search Firm Number and Type combination, or to the Active Firm Number/Type combination. If the contra party is inactive, the user must send the CBRS record to the Active Firm Number/Type. For an active CBRS user, the value in the CBRS Account Effective Date field corresponds to the date the account becomes eligible for processing in the production environment. For an inactive CBRS user, the value in the CBRS Account Effective Date field corresponds to the first date that the inactive record is valid. Examples For example, Firm A goes out of business, and Firm B assumes all of Firm A s accounts. Because Firm A has gone out of business, it is removed from the CBRS User Master File. Once this new functionality is in place, Firm A can become an Inactive record, and Firm B is the associated Active record. For each inactive record, a contra party should send CBRS records to the active user. The following examples illustrate the different scenarios that can occur in the new version of the Master File. In these examples, as for all CBRS users, type AGTNBR = Transfer Agent (TA), type DTCPRT = DTC participant, type NSCPRT = NSCC participant, and type CBRACT indicates a CBRS user who does not have a DTC, NSCCPRT, or TA number (i.e. a CBRS-only user ). CBRS User Account Number CBRS Account Name Active Firm Number Active Firm Type CBRS Account Effective Date Exempt Recipient Accounts Search Firm Number Search Firm Type Active/ Inactive 000ZZZZ1 Example 1 AAA DTCPRT 1/1/2011 N AAA DTCPRT A 000ZZZZ2 Example 2 BBBB NSCPRT 1/2/2011 Y BBBB NSCPRT A 000ZZZZ3 Example 3 CCCCC AGTNBR 1/3/2011 N CCCCC AGTNBR A 000ZZZZ4 Example 4 DDDD DTCPRT 1/4/2011 N DDDD DTCPRT A 000ZZZZ4 Example 4 DDDD DTCPRT 8/1/2012 N EEE DTCPRT I Eligibility for CBRS 17

18 CBRS User Account Number CBRS Account Name Active Firm Number Active Firm Type CBRS Account Effective Date Exempt Recipient Accounts Search Firm Number Search Firm Type Active/ Inactive 000ZZZZ5 Example 5 FFFF NSCPRT 1/5/2011 Y FFFF NSCPRT A 000ZZZZ5 Example 5 FFFF NSCPRT 8/5/2012 Y YYYY1 CBRACT I 000ZZZZ6 Example 6 ZZZZ6 CBRACT 1/6/2011 N ZZZZ6 CBRACT A 000ZZZZ6 Example 6 ZZZZ6 CBRACT 8/6/2012 N XXXX2 CBRACT I 000ZZZZ7 Example 7 ZZZZ7 CBRACT 1/7/2011 N ZZZZ7 CBRACT A 000ZZZZ7 Example 7 ZZZZ7 CBRACT 8/7/2012 N GGG NSCPRT I 000ZZZZ8 Example 8 HHHHH AGTNBR 1/8/2011 N HHHHH AGTNBR A 000ZZZZ8 Example 8 HHHHH AGTNBR 8/8/2012 N JJJ AGTNBR I 000ZZZZ9 Example 9 LLL NSCPRT 1/9/2011 N LLL NSCPRT A 000ZZZZ9 Example 9 LLL NSCPRT 8/9/2012 N MMM NSCPRT I 000ZZZZ9 Example 9 LLL NSCPRT 8/10/2012 N NNN NSCPRT I Examples 1-3 are CBRS users who do not have a relationship with an inactive Firm Number. They are Active records only with no corresponding inactive records. The expectation is that most CBRS users will only have Active records. Example 4 is a CBRS user who is a DTC participant, DDDD, who has assumed the cost basis responsibility for a retired CBRS user who is a DTC participant, number EEE. DDDD is the active user, and EEE is the inactive user. All CBRS records intended for EEE should be sent to DDDD. Example 5 is a CBRS user who is an NSCC participant, FFFF, who has assumed the cost basis responsibility for a retired user who is a CBRS-only user, YYYY1. FFFF is the active user, and YYYY1 is the inactive user. All CBRS records intended for YYYY1 should be sent to FFFF. Example 6 is a CBRS-only user, ZZZZ6, who has assumed the cost basis responsibility for a retired user who is a CBRS-only user, XXXX2. ZZZZ6 is the active user, and XXXX2 is the inactive user. All CBRS records intended for XXXX2 should be sent to ZZZZ6. Example 7 is a CBRS-only user, ZZZZ7, who has assumed the cost basis responsibility for a retired user who is a NSCC participant, GGG. ZZZZ7 is the active user, and GGG is the inactive user. All CBRS records intended for GGG should be sent to ZZZZ7. Example 8 is a CBRS user who is a Transfer Agent, HHHHH, who has assumed the cost basis responsibil ity for a retired user who is a Transfer Agent, JJJ. HHHHH is the active user, and JJJ is the inactive user. All CBRS records intended for JJJ should be sent to HHHHH. Eligibility for CBRS 18

19 Example 9 is a CBRS user who is an NSCC Participant, LLL, who has assumed the cost basis responsibility for two NSCC participants MMM and NNN. LLL is the active user, and MMM and NNN are the inactive users. All CBRS records intended for MMM or NNN should be sent to LLL. To set up an inactive record: The user who is the active member must instruct DTCC to set up a new inactive record (a.k.a. Alternative Account). The active user must submit the DTCC Alternative Account Instruction using the template provided on the DTCC.com website. By default, an inactive record expires 18 months after it is set up, unless the member specifies an end date. In its instructions to DTCC, an active user can request the inactive record to remain on the Master File for a longer amount of time, if necessary. Note The Account Numbers on the User Master File output have leading zeroes.? If a fund has a Y in the Exempt Recipient Accounts Indicator (meaning the fund does not want to receive basis for retirement accounts), but a firm sends a record with basis for a retirement account to the fund, does CBRS pass system reject the record back to the firm? CBRS does not reject a record in this scenario. CBRS does not have any system edits based on the Exempt Recipient Accounts Indicator. In the case described in this question, CBRS passes the record to the fund.? If I send a CBRS record to an inactive user, what will happen? CBRS system rejects a record sent to a user designated as Inactive on the CBRS User Master File.? What System Reject Reason does CBRS use in this case? On the Transaction Machine Readable Output (MRO), CBRS populates the System Reject Reason field with the value 01 = Invalid Field, and populates the AO Contra Firm Number Status field with the value 2 = Error. The combination of these values indicates that the submitter has populated a field with an invalid value, and the status field indicates which field contains the invalid value (in this case, the Contra Firm Number on the Asset record).? Is it possible for a CBRS only user to be the active user for an inactive NSCC, DTC, or TA number? The CBRS User Master File has been designed to allow an active CBRS only user (type CBRACT) to have corresponding inactive records that are NSCC participants, DTC participants, or Transfer Agents (types NSCPRT, DTCPRT, and AGTNBR, respectively). Please note that the type CBRACT is a receiver on a limited number of Transaction Types, so a CBRS only user may not be able to receive a record sent to it on behalf of the inactive DTC, NSCC, or TA number.? I only know the OCC number of my contra. How do I find the CBRS active user number? Eligibility for CBRS 19

20 The CBRS User Master File has been designed to allow an active CBRS user to have corresponding inactive record user identifiers for their OCC account numbers. Use the Search Firm Type DTCOCC to find the active CBRS user number.? I only know the FED number and short name combination of my contra. How do I find the CBRS active user number? The CBRS User Master File has been designed to allow an active CBRS user to have corresponding inactive record user identifiers for their FED account number and associated short names. Use the Search Firm Type DTCFED to find the active CBRS user number.? I m looking for a CBRS user who was on the CBRS User Master File last week, but is not there today. What happened? How can I send cost basis to this user? If a user is no longer on the CBRS User Master File, it has become ineligible to send and receive records via CBRS. A variety of things could have happened; maybe the firm went out of business, or merged with another firm. If the contra firm or fund is not on the CBRS User Master File, you cannot send CBRS records to them: you need to send cost basis through an alternate, manual method. Receiving and Submitting Firm Numbers Notes If a firm has a DTC Participant Number, NSCC Participant Number, or a Transfer Agent Number, that number is the number to use in the Submitting or Contra Firm Number field in CBRS. If a firm has none of the numbers above, the CBRS User Account Number is the number to use in the Submitting or Contra Firm Number field. Each firm that participates in CBRS is assigned a CBRS User Account Number. As mentioned above, for most users the CBRS User Account Number is not the primary number used to identify the firm in CBRS data input and output. As applicable, the CBRS User Account Number is related to an existing DTC Participant Number, NSCC Participant Number, or Transfer Agent Number based on the logic below. This relationship allows users to identify themselves and other firms using numbers with which they are already familiar. The Contra and Submitting Firm Number must follow the following logic: A user who is a DTC Participant uses its DTC Participant Number A user who is an NSCC Participant uses its NSCC Participant Number A user who is both a DTC Participant and NSCC Participant uses its DTC Participant Number An equity transfer agent/issuer who has a Transfer Agent Number uses this number All other firms use their CBRS User Account Number While the CBRS User Account Number will not often be the number used to identify the firm as a submitter and receiver of CBRS records, users are advised to make a note of their CBRS User Account Number for use in communicating with DTCC about system and billing inquiries.? If a user has a DTC number or Transfer Agent number, can I send records to it using its CBRS number? Eligibility for CBRS 20

21 No. For users who have DTC or Transfer Agent (TA) numbers, you must send basis to the DTC or TA number and the appropriate firm type.? Some transfer agents (TAs) have multiple TA numbers. If I am sending a CBRS record to a TA, does the TA number have to be the specific TA number assigned to that ISIN Security Issue ID (CUSIP)? No. For CBRS records to or from a transfer agent, CBRS does not check that the Submitting or Contra Firm Number is the correct TA number for the CUSIP on the record. While CBRS does not perform an edit between the TA number and the CUSIP number, it does on some occasions populate the TA number in the Contra Firm Number field based on the CUSIP. For Original and Corrected records where a TA is the receiver (Transaction Types 36 = DWAC Withdrawal and 37 = Withdrawal by Transfer (WT)), and Firm Reject and Request records where a TA is the receiver (Transaction Types 26 = DWAC Deposit, 27 = Certificate Deposit, and 28 = DRS Profile/DO), CBRS automatically populates the Contra Firm Number field with the number for the transfer agent who corresponds to the ISIN Security Issue ID (CUSIP) number on the record. If this transfer agent number is eligible for CBRS, CBRS passes the record to the agent (assuming the record passes all other system rules and edits). If the transfer agent number is not eligible for CBRS, CBRS populates the number on the output back to the submitting broker-dealer, so the broker knows where to send the cost basis using some other method.? I work at a broker-dealer, and have had some rejects in CBRS records that I ve sent to a transfer agent (TA) who I know is eligible for CBRS. Why are these rejects happening? Some TAs have multiple TA numbers. There are some cases where not all TA numbers for a given TA are eligible for CBRS. For Example, a TA has three numbers: 12345, 23456, and The TA has made numbers and eligible for CBRS, but not A broker-dealer sends a request record for cost basis on a deposit on CUSIP The broker-dealer populates the ISIN Security Issue ID (CUSIP) field with , which happens to correspond to TA number CBRS automatically populates the Contra Firm Number field with TA number 34567, and then rejects the record because is not eligible for CBRS even though the same TA has two other numbers that are CBRS eligible. Best Practices suggest that TAs should make all their TA numbers eligible for CBRS, to prevent this system reject. Asset Eligibility All assets are eligible for the submission of cost basis information. Both Covered and Noncovered Securities are Eligible CBRS supports the passage of cost basis on both covered and noncovered securities. The Tax Lot Input record includes a Noncovered/Pending Indicator field that the submitter can use to indicate that a lot is noncovered. Eligibility for CBRS 21

22 If the Noncovered/Pending Indicator is left blank, the lot is considered covered. Eligibility for CBRS 22

23 4. APPLICATION INPUT AND OUTPUT Input and Output timing Input: for today s processing date, firms can submit CBRS records between 8 PM ET yesterday (the previous processing day) and 4 PM ET today. o o o Files submitted between 8 PM ET yesterday and 4 PM ET today should have today s date in the header Files with today s header date, submitted between 4 PM and 8 PM today, are processed with tomorrow s processing date Files with tomorrow s header date, submitted between 4 PM and 8 PM today, are rejected by CDTS. Output: for today s processing date, CBRS transaction output and the Daily Deposit File for Transfer Agents is available by 9 PM ET today. The Cost Basis User Master File is available by 11 PM ET today. This schedule applies to input and output through both the automated computer to computer connection, and via DTCC web portal. General Record Layout Information The CBRS record layouts, both input and output, are located in the CBRS Technical Documentation area of the DTCC Learning website. (Registered Learning Center users will need to be logged in to access the file.) The column headings for the record layouts are: Heading Field Name Length Start End Type Opt/Req/Cond Comments Definition The name of the field The length of the field, in bytes The position where the field starts The position where the field ends The type of the field: A/N = Alphanumeric NUM = Numeric Indicator that specifies whether the field is optional, required, or conditionally required: OPT = optional field REQ = required field COND = conditionally required, depending upon values in other fields A brief field description, possibly including format, valid values, conditional requirements, general use rules, and/or best practices Notes on the record layouts: Application Input and Output 23

24 All input fields must contain printable and allowed characters; otherwise CBRS will overlay the input with asterisks, *, and reject the record. The CBRS printable and allowed characters are all lower/upper case letters and numbers, and certain symbols. Alphanumeric fields may contain any character in the EBCDIC computer character set except for unprintable characters such as Low-Value, High-Value, COMP-3 fields, etc. See Appendix B for the list of valid characters for CBRS. Numeric fields may include digits (0-9) only. When a field is required: o If a list of values is provided, the field must contain a value from that list o An alphanumeric field without a specified list of possible values may have any alphanumeric value, except spaces o A numeric field without a specified list of possible values may contain any digit except zero (0) When a field is optional: o An alphanumeric field with a specific list of possible values must have one of those values or blank o An alphanumeric without a specific list of possible values may have any value including spaces o A numeric field without a specific list of possible values may contain numeric digits (0-9) or spaces All dates in the layouts have the format CCYYMMDD (except where otherwise indicated), where: o CC = Century o YY = Year o MM = Month o DD = Day For example, December 31, 2011 is in CBRS format. The Quantity fields support up to four decimal places. Decimals greater than four places in the quantity fields are truncated. Notes The position of the decimal point can float. The record layouts state: "Position of decimal denoted by a ',' (comma). Up to four decimal places will be supported before truncation occurs." The following list shows examples of how the share quantity fields can look on the CBRS output file: , , , ,5678 The Cost fields support up to two decimal places. Decimals greater than two places in the cost fields are truncated. Filler fields Application Input and Output 24

25 Filler fields are required because the filler tells the system the position of the fields in the record. Also, when fields are marked as optional, this means that the value in the field is optional, but the submitter is required to provide spaces in place of the value to keep the position of the other fields in the correct place. The filler at the end of the record is required as well: the filler at the end of the record layout extends the length of the record to the required 1,000 bytes. A submitted record that is more or less than 1,000 bytes in length will be system rejected.? When DTCC removes a field from the CBRS record layouts and turn it into filler, what happens if a submitter populates this field? Once a field has been removed from the record layouts, and turned into a filler field, the CBRS application does not look at this field. The data populated in this field by the submitter is not included in the CBRS output. DTCC recommends that the submitter space out these bytes: a submitter who does not space out these bytes may encounter a problem in the future if the bytes are reused for a different field. Using CBRS for cost basis information in non-us Currency All cost fields in CBRS are denominated in US Dollars only. However, on the Tax Lot level, there are two fields ISO Currency Code and Exchange Rate that allow a submitter to tell the receiver that the submitter held the cost basis on its system in a different currency, and converted the cost basis to US Dollars to transfer it. When transferring basis for a lot purchased in a foreign currency, please note the following: For lots whose acquisition date has been adjusted as the result of a wash sale, the exchange rate should be the rate as of the date in the Original Acquisition Date for Wash Sale Adjustment field. The exchange rate is the rate that the delivering firm captured on the date the security was purchased. The currency that the trade settled in is the currency that the cost basis should be recorded in. The deliverer provides the exchange rate so that the receiver can calculate the gain/loss in the currency separately from the gain/loss in the security. Input General Information Transfer Control Number Users must enter a Transfer Control Number for each CBRS transaction submitted to the system. This Transfer Control Number should be the same as the control number used to identify the asset transfer that triggered the need to pass cost basis. All cost basis output includes this Transfer Control Number for reference. CBRS rejects any cost basis record that does not have a Transfer Control Number. In the Asset Input and Tax Lot Input records, the va lue in the Transfer Control Number field should be left justified. Application Input and Output 25

26 ? If the transfer control number has less than 30 bytes, does the submitter have to follow the transfer contro number with spaces or zeros? CBRS accepts either one.? For some CBRS transaction types, I should use the IMS TID number as the Transfer Control Number. I know this number is available on the DTFPART file, but is there a way to manually look up the IMS TID number? You can look up a DTC transaction s IMS TID number through the ART function in PBS. Begin by selecting a transaction. After you click on the transaction, you see the screen below. The IMS TID is located at the bottom of the Activity Details section of the screen. The IMS TID is not available in PTS. Figure 3. Activity Details For Transaction Type 01 = ACATS, the Transfer Control Number should be populated with the 14-byte ACATS control number from the original transfer. However, the ACATS Control Number that we receive in positions on the Fund/SERV 018 record (an ACATS Transfer) is 20 bytes.? Should I truncate the field down to 14 bytes? How do I know what the ACATS Control Number is? The first fourteen bytes of the ACATS Control Number on the Fund/SERV record are the ACATS Control Number. The last six bytes are the ACATS Asset Sequence Number (which is used to identify that particular mutual fund asset in the ACATS transfer). Notes about populating the Transfer Control Number for Transfer Agent Transactions: For deposit Transaction Type 27 = Certificate Deposit, a Transfer Agent can choose to receive the CBRS Daily Deposit File. The Transfer Control Number is the Reference ID, ARF, or CID number that was submitted on the original deposit. Application Input and Output 26

27 For deposit Transaction Type 26 = DWAC Deposit, use the 26 byte Reference ID that you see on CDWC as the CBRS Transfer Control Number. For Transaction Type 37 = Withdrawal by Transfer (WT), use the first 30 bytes of the 37 byte reference number on the RSATFX file (for FAST) or on the upper right had corner of the Transfer Assignment Control Form (TACF) (for non-fast). For Transaction Type 28 = DRS Profile/DO, use the first 30 characters of the customer account number received via the DRSPRO file. Firm Reject Record A firm sends a firm reject record when, for various reasons, the firm cannot apply the received cost basis to its books. This situation is different from a system reject. A system reject occurs when the CBRS system rejects a record because it does not comply with the system s rules, such as when a date field has a value of 1/35/2012, which is not a valid calendar date. Information flow for a firm reject record: 1. A user receives a CBRS record that it cannot apply to its books. 2. This user submits an asset record, with the value 03 = Firm reject record in the Record Content Indicator field. At this point the receiver of the firm reject record decides whether to respond. CBRS does not require a response to a firm reject. If the receiver of the reject chooses to respond, the information flow continues with step To correct the error, the receiver of the reject responds with an asset record with the value 02 = Corrected asset record in the Record Content Indicator field, and its corresponding tax lots. At least one of these tax lots must also be corrected (value 02 = Corrected tax lot record in the Record Content Indicator field). Firm Number and Type vs. Customer Account Number fields The Submitting Firm Number and Submitting Firm Type should always correspond to the user sending the CBRS record. The Receiving Firm Number and Receiving Firm Type should always correspond to the user receiving the CBRS record. The Deliverer Customer Account Number should always correspond to the user who delivered the asset transfer, and the Receiver Customer Account Number should always correspond to the user who received the asset transfer. Another way to think of it is the Deliverer Customer Account Number corresponds to the user who is delivering the cost basis, and the Receiver Customer Account Number corresponds to the user who is receiving the cost basis. Notes for the transfer of a short position: The Deliverer Customer Account Number is the account from which the short position is being transferred. The Receiver Customer Account Number is the account that is adding the short position to its books and is thus receiving the Proceeds as required by the regulations. Therefore, in this context, the fields deliverer and receiver account numbers correspond to the account delivering and receiving the short position, not the account delivering or receiving the long shares. Application Input and Output 27

28 Examples: This example shows how an original record is sent after the transfer of a long position. Scenario: customer s long position is transferred from Firm A to Firm B. 1. Firm A delivers shares to Firm B. 2. Firm B establishes the customer s long position on its books. 3. Firm A sends cost basis to firm B (Original asset and tax lot(s) records). This example shows how a request record, followed by an original record, are sent after the transfer of a short position. Scenario: customer s short position is transferred from Firm A to Firm B. 1. Firm B delivers shares to Firm A. 2. Firm B establishes the customer s short position on its books. 3. Firm A accepts the shares. 4. Firm B sends Firm A a borrow Request record (a Request asset record with the value of B = Borrowed in the Position Code field). 5. In response to the borrow request record, Firm A should send the proceeds to Firm B (Original asset and tax lot(s) records). There are four types of records that may be sent through CBRS. The following describes how each should be used: Original record used to initially send cost basis to the contra-firm Corrected record used to send corrected basis when previously sent basis is deemed to be incorrect Firm Reject record used in cases where the contra-firm receives basis for which it cannot match to a received asset Request record used to request basis if it was not received on an asset transfer within 15 days or as a borrow request for long shares delivered to cover the transfer of a short position The table below shows how these fields should be filled out for each record type. This table applies to both long and short positions. Record Type Submitting Firm Number Submitting Firm Type Contra Firm Number Contra Firm Type Deliverer Customer Account Number Receiver Customer Account Number Original Firm A Firm A Firm B Firm B Firm A Firm B Corrected Firm A Firm A Firm B Firm B Firm A Firm B Firm Reject Firm B Firm B Firm A Firm A Firm A Firm B Request Firm B Firm B Firm A Firm A Firm A Firm B Application Input and Output 28

29 Contra Firm Number For Original and Corrected records where an Issuer/Equity Transfer Agent (TA) is the receiver (Transaction Types 36 = DWAC Withdrawal and 37 = Withdrawal by Transfer (WT)), and Firm Reject and Request records where a TA is the receiver (Transaction Types 26 = DWAC Deposit, 27 = Certificate Deposit, and 28 = DRS Profile/DO), CBRS automatically populates the Contra Firm Number field with the number for the transfer agent who corresponds to the ISIN Security Issue ID (CUSIP) number on the record. If this transfer agent number is eligible for CBRS, CBRS passes the record to the agent (assuming the record passes all other system rules and edits). If the transfer agent number is not eligible for CBRS, CBRS populates the number on the output back to the submitting broker-dealer, so the broker knows where to send the cost basis using some other method.? If a broker-dealer has received a deposit from a transfer agent, does CBRS automatically solicit the cost basis information from the transfer agent? No, CBRS does not automatically solicit the cost basis information. Instead, when the broker-dealer sends the transfer agent a request asset record for the cost basis on the deposit, CBRS follows the process described above. Contra Firm Type CBRS needs the Submitting and Contra Firm Type fields because of the occasional overlap between DTC, NSCC, and Transfer Agent numbers. In order for firms to use their existing participant numbers, and not a CBRS Account Number, as an identifier in CBRS input and output records, the CBRS application needs the Firm Type to be able to properly identify the submitting and contra users where an overlap exists. Please see the tables below to clarify the relationship between the Contra Firm Type and the various Transaction Types (these rules are in the input record layouts). For the Original and Corrected Records: If the Transaction Type is: Contra Firm Type must be: 01 = ACATS DTCPRT; NSCPRT;CBRACT 02 = Free DTC Deliver Order (non-acats) DTCPRT;NSCPRT;CBRACT 03 = Valued DTC Deliver Order DTCPRT;NSCPRT;CBRACT 04 = Conversion DTCPRT; NSCPRT; CBRACT 05 = Mutual Fund Transfer (non-acats) [change of broker-dealer] DTCPRT; NSCPRT; CBRACT 06 = FED DTCPRT; NSCPRT; CBRACT 07 = Physical Movement Settlement DTCPRT; NSCPRT; CBRACT 08 = OCC Transfer (non-acats) DTCPRT; NSCPRT; CBRACT 09 = Non-Domestic Depository (Foreign) DTCPRT; NSCPRT; CBRACT 10 = Other DTCPRT; NSCPRT; CBRACT Application Input and Output 29

30 If the Transaction Type is: Contra Firm Type must be: 26 = DWAC Deposit DTCPRT 27 = Certificate Deposit DTCPRT 28 = DRS Profile/DO DTCPRT 36 = DWAC Withdrawal AGTNBR 37 = Withdrawal by Transfer (WT) AGTNBR 41 = Direct Presentation AGTNBR; CBRACT; DTCPRT 46 = Fund to Firm Mutual Fund Transfer DTCPRT; NSCPRT 51 = Firm to Fund Mutual Fund Transfer DTCPRT; NSCPRT 56 = Networking Transaction DTCPRT; NSCPRT 57 = Manual Mutual Fund Transfer CBRACT; DTCPRT; NSCPRT 58= AIP DTCPRT;NSCPRT;CBRACT 59= Alternative Investment (Non-AIP) DTCPRT;NSCPRT;CBRACT For the Firm Reject and Request Records If the Transaction Type is: Contra Firm Type must be: 01 = ACATS DTCPRT; NSCPRT;CBRACT 02 = Free DTC Deliver Order (non-acats) DTCPRT;NSCPRT;CBRACT 03 = Valued DTC Deliver Order DTCPRT;NSCPRT;CBRACT 04 = Conversion DTCPRT; NSCPRT; CBRACT 05 = Mutual Fund Transfer (non-acats) [change of broker-dealer] DTCPRT; NSCPRT; CBRACT 06 = FED (non-acats) DTCPRT; NSCPRT; CBRACT 07 = Physical Movement Settlement DTCPRT; NSCPRT; CBRACT 08 = OCC Transfer (non-acats) DTCPRT; NSCPRT; CBRACT 09 = Non-Domestic Depository (Foreign) DTCPRT; NSCPRT; CBRACT 10 = Other DTCPRT; NSCPRT; CBRACT 26 = DWAC Deposit AGTNBR; DTCPRT; NSCPRT; CBRACT 27 = Certificate Deposit AGTNBR; DTCPRT; NSCPRT; CBRACT 28 = DRS Profile/DO AGTNBR; DTCPRT; NSCPRT; CBRACT 36 = DWAC Withdrawal DTCPR; NSCPRT; CBRACT 37 = Withdrawal by Transfer (WT) DTCPRT; NSCPRT; CBRACT 41 = Direct Presentation AGTNBR; CBRACT; DTCPRT Application Input and Output 30

31 If the Transaction Type is: Contra Firm Type must be: 46 = Fund to Firm Mutual Fund Transfer DTCPRT; NSCPRT 51 = Firm to Fund Mutual Fund Transfer DTCPRT; NSCPRT 56 = Networking Transaction DTCPRT; NSCPRT 57 = Manual Mutual Fund Transfer CBRACT; DTCPRT; NSCPRT 58= AIP DTCPRT;NSCPRT;CBRACT 59= Alternative Investment (Non-AIP) DTCPRT;NSCPRT;CBRACT The comments in the record layouts explain the roles of the submitter and contra firms by dividing the transaction types into the following categories: Firm to Firm: 01 = ACATS 02 = Free DTC Deliver Order (Non-ACATS) 03 = Valued DTC Deliver Order 04 = Conversion 05 = Mutual Fund Transfer (Non-ACATS) [change of broker-dealer] 06 = FED (Non-ACATS) 07 = Physical Movement Settlement (Non-ACATS) 08 = OCC Transfer (non-acats) 09 = Non-Domestic Depository (Foreign) 10 = Other Firm & Transfer Agent: o Agent submits/firm receives CBRS original/corrected record: 26 = DWAC Deposit 27 = Certificate Deposit 28 = DRS Profile/DO o Firm submits/agent receives CBRS original/corrected record: 36 = DWAC Withdrawal 37 = Withdrawal by Transfer (WT) o Either Agent submits/firm receives or Firm submits/agent receives CBRS original/corrected record: 41 = Direct Presentation Firm & Fund (In-kind Mutual Fund Transfers): o Fund submits/firm receives CBRS original/corrected record: 46 = Fund to Firm Mutual Fund Transfer [via ACATS Fund/SERV interface; also known as PTF, Position Transfer Fund ACATS transfer type] o Firm submits/fund receives CBRS original/corrected record: 51 = Firm to Fund Mutual Fund Transfer [via ACATS Fund/SERV interface; also known as PTF, Position Transfer Fund ACATS transfer type] Application Input and Output 31

32 o Either fund submits/firm receives or firm submits/fund receives CBRS original/corrected record: 56 = Networking Transaction 58= AIP (Alternative Investment Product) 59=Alternative Investment (Non-AIP)? In the case when an equity transfer agent/issuer is either the submitter or receiver of CBRS records, does the system verify that Submitting or Contra Firm Type and Number is the right transfer agent for that CUSIP, or just verify that the firm is an eligible CBRS User? CBRS checks that the transfer agent is an eligible CBRS user; it does not confirm that the Firm Number is the correct number for the CUSIP in that record. However, CBRS does populate the Contra Firm Number in most cases when a transfer agent is the receiver. Please see the Asset and Tax Lot Input record layouts for the rules for when CBRS populates the Contra Firm Number. Numeric fields? In numeric fields, do I have to zero fill all the bytes before the actual number? For example, in the Total Position Quantity field, if I send an asset record for shares should I send ,53 or can I send spaces instead of zeroes? You can send either one. You can send 45,53 and CBRS adds leading zeroes; or you can send ,53. Asset Category field? Should the value in the Asset Category field be left justified with a space to the right if it is a three letter code? In other words, the field is four bytes long, but for Asset Category EQU, should the EQU be left justified with a space after the value or right justified with a space before the value? The 3-letter value should be left justified, otherwise CBRS rejects the record. So, for EQU, the submitter should populate the Asset Category field with EQU_ where the underscore represents a space. Sum of the tax lot quantities must match the asset quantity As discussed in an earlier section, an Asset record and its corresponding Tax Lot record(s) are a package. The sum of the tax lot quantities must equal the quantity of the corresponding asset record, or CBRS rejects the package. CBRS sums the tax lot quantities and compares this sum to the value in the Total Position Quantity field in the associated asset record. When calculating the total tax lot quantity, CBRS adds the quantity of each long tax lot (value L = Long in the Position Code field), and subtracts the quantity of each short tax lot (value S = Short in the Position Code field). Application Input and Output 32

33 The number in the Total Position Quantity field on the asset record is considered to be positive when the value in the asset record s Position Code field is L = Long. The number in the Total Position Quantity field on the asset record is considered to be negative when the value in the asset record s Position Code field is S = Short. CBRS compares the Total Position Quantity on the asset record to the sum of the values in the Tax Lot Quantity fields for the corresponding tax lot records, and rejects the record if the quantities do not match. Optional fields? If an optional field is not filled in on the asset or tax lot input, what will be in that field on the transaction output? The quantity and price fields will have zeros in them, other fields will be blank. Borrowed Position Code The value Borrowed is only valid for a request record (Record Content Indicator = 04). This is a rare situation that can occur when a short position is delivered outside of a standard ACATS transfer. Figure 4 shows the steps for when a Borrowed value would be used. Figure 4. Information flow with a Borrowed position code Application Input and Output 33

34 In step 4, when the Blue firm sends the proceeds of the short to the Yellow firm, he/she can use either the Tax Lot Current Cost field or the Tax Lot Original Cost field, depending on the type of asset. The Tax Lot Input record layout lists the rules for which cost field should be used for which Asset Category type. ACATS Asset Sequence Number CBRS includes the ACATS Asset Sequence Number on the Asset Input record layout as a result of industry discussions about how to match cost basis to an asset transferred through ACATS which is identified by a User CUSIP. A submitter and receiver may use a different User CUSIP to identify a particular asset, such as a restricted security. The ACATS Asset Sequence Number is another data element to help the receiver match an asset transferred through ACATS to the cost basis received via CBRS. The date 07/26/2012 in the rule in this field is based on the day before this field was added to the CBRS code in the Production environment. The ACATS Asset Sequence Number is not required for ACATS transfers whose Date Transfer was Initiated or Settlement Date of Transfer occurred before the field was available in Production because some CBRS users may not have stored this number in the past.? What happens if I populate the ACATS Asset Sequence Number field for a transfer whose settlement date is before 7/26/2012? If you populate the ACATS Asset Sequence Number for a transfer whose settlement date is before 7/26/2012, CBRS validates that the field is a 6-byte numeric field. If the value in the field passes that validation (and there are no other problems with the record), CBRS passes the record to the receiver. If the value in the field does not pass the validation, CBRS system rejects the record.? What should I populate in the ACATS Asset Sequence Number field for transaction types other than 01 = ACATS? For transaction types other than 01 = ACATS, the submitter should leave this field blank. If you populate this field for a transaction type other than 01 = ACATS, CBRS will space out the field and pass the record. Output General Information Firms receive a variable length Transaction Machine Readable Output (MRO) file via CDTS (Output Product ID # ). A download of CBRS MRO files is available through DTCC web portal. Firms using the DTCC web portal CBRS Inquiry function can download the CBRS transaction output file to Excel (Output Product ID # ). Firms can download a daily end-of-day CBRS transaction output file that will be available on DTCC web portal (Output Product ID # ). The Cost Basis Transaction MRO output record layout is 1,500 bytes, which is 500 bytes longer than the Asset and Tax Lot input record layouts. The output is longer because of a number of fields that CBRS adds to the output after it processes the input. Further details about these additional fields follow below. CBRS sends all accepted cost basis data to eligible recipients. CBRS validates each field to ensure that it meets the established validation rules. CBRS passes the cost basis data to the receiving firms and does not verify the accuracy of the data submitted. Application Input and Output 34

35 The Cost Basis Transaction MRO has three main components. The first component is a set of CBRS systemgenerated output fields. The second component is a set of status fields for the Asset and Tax Lot records received from the input file. The third component is the actual Asset and Tax Lot data fields that contain the cost basis information validated by the CBRS system. CBRS returns the Asset and Tax Lot records to firms in the same sequence it received them: Asset record first, and then all of the associated Tax Lot records. The CBRS output includes both the records that a user submits, and the records that it receives from other users. In the output, users can also see the submitted records that CBRS rejected. Each record in the Cost Basis Transaction MRO file has a System Action field that labels the record as Accepted, Modified, or Rejected.? What are the primary keys for the Transaction MRO file? There is no primary key on the file. The Cost Basis Control Number uniquely identifies a CBRS transfer which consists from 1 to many records (1 Asset record plus zero to many Tax Lot records that correspond to the asset). To create uniqueness in your database you need to add a column, such as a sequence number. The combination of these two columns creates a unique key within the table. If the information is stored in more than one table you need to identify your self-created keys in a manner consistent with your database structure. Distribution Side The Distribution Side field on the MRO file corresponds to whom CBRS is sending the file. For system rejected records, this field has a value of S = Submitting Participant, because only the submitter receives system rejected records. For records successfully processed through CBRS, this field has a value of B = Both Receiving and Submitting Participant, because CBRS sends successfully processed records to both the submitting and receiving firm. The Cost Basis Transaction MRO file also has a Distribution Firm Number and Distribution Firm Type. These fields have the firm number and type for the user receiving the file. Cost Basis Control Number CBRS assigns a Cost Basis Control Number that uniquely identifies each Asset and associated Tax Lot record(s). This number appears only on the Cost Basis Output sent to each firm. The Cost Basis Control Number format is CCYYDDDCBNNNNNNNN (date + CB + eight digit number). CBRS assigns the Cost Basis Control Number to each submitted asset. All Tax Lot records associated with a particular Asset have the same Cost Basis Control Number as that Asset. The only exception is when a firm submits Tax Lot record(s) without a corresponding Asset record. In this case CBRS assigns a separate Cost Basis Control Number to each Tax Lot record, and then rejects it. Also, CBRS assigns a unique Cost Basis Control Number to rejected Cost Basis records (Asset and t heir associated Tax Lot records) for identification purposes. System Rejects CBRS validates each field to ensure that it meets the established validation rules. If a record does not pass these rules, CBRS rejects the record. CBRS returns rejected transactions, both asset and tax lot records, only Application Input and Output 35

36 to the submitting firm. The intended receiver of the cost basis information does not know the submitter attempted to deliver the information if the transaction is system rejected. If CBRS rejects an Asset record, it also rejects all corresponding Tax Lot records. If CBRS rejects one Tax Lot record, it also rejects all of the Tax Lot records and the associated Asset record. CBRS uses two fields to identify the error on a record: the System Action Code field and the System Reject Reason field. For more information, please read the field descriptions below. System Action field The System Action field is in the beginning section of the output record of both the Asset or Tax Lot record. The System Action field indicates if each record on the input file was accepted, rejected, or modified. The values for the field are: 1 = System Accepted - Transaction submitted correctly 2 = System Modified - Transaction submitted correctly and modified by CBRS 3 = System Rejected - Transaction submitted incorrectly Successfully passed records have a value of either 1 = System Accepted or 2 = System Modified in the System Action field. System Modified means CBRS has changed a field in the record. For more detail, see the bullet below on the System Changed value in the Status field. System Reject Reason field The System Reject Reason field specifies the reason that CBRS rejected the record(s). If the System Action code is a 3, the System Reject Reason field indicates the applicable reason. The System Reject Reasons and their explanations are listed below. 01 = Invalid Field one or more fields in the record has violated system rules. 02 = Associated Record is Invalid on an Asset record, this code indicates that one or more of the associated tax lot records has violated system rules; on a Tax Lot record, this code indicates that the associated asset record has violated system rules. 03 = Invalid Length Record the record does not conform to the 1,000 byte length required by the record layout. 04 = Invalid Physical Sequence asset record not present the Tax Lot record does not have an associated Asset record. 05 = Invalid Physical Sequence tax lot record(s) not present the Asset record does not have an accompanying Tax Lot record. 07 = Invalid Accumulated Quantity the sum of the Tax Lot Quantity fields does not equal the Total Position Quantity field on the associated Asset record. Application Input and Output 36

37 09 = No Corrected Tax Lot present for corrected Asset Input an Asset Record with the value 02 = Corrected asset record in the Record Content Indicator field does not have at least one associated Tax Lot record with the value 02 = Corrected tax lot record in its Record Content Indicator field. 10 = Invalid Physical Sequence Tax Lot invalid with Asset Input reject or request an Asset record with either 03 = Firm reject record or 04 = Request record in the Record Content Indicator field has an associated Tax Lot record. Space = Not rejected CBRS has not rejected the record. Note Numbers 06 and 08 are not currently in use. Status Fields On the output, each submitted field has a corresponding status field. This field indicates if the value in the submitted field is valid, system changed, or error. A space is also a possible value for this field: the space occurs if the field is an optional field, the submitter does not populate the field, and the field does not have a default value. CBRS populates the status fields for all records on the Transaction MRO file. For the records where you are the contra party, the status is 0 = Valid, 1 = System Changed, or [space] which indicates that this field was not populated by the submitter. If a submitted field does not pass CBRS system rules, the status for that field is populated with a value of 2 = Error. When you are the contra party, you do not receive a status field which has a value of 2 = Error, because CBRS rejects a record that has an error in it and returns it to the submitter. CBRS does not pass a system rejected record to the contra party.? What if a submitter sends a corrected tax lot with an original asset record what is the system reject reason in this case? The System Reject Reason is 01 = Invalid Field, and the TO Record Content Indicator Status value is 2 = Error. Example of System Changed System Changed appears in a Status field when CBRS changes a submitted value in a field. For example, on the Tax Lot Input record, there is a Certificate Number field. This field is allowed for only two transactions: 27 = Certificate Deposit and 41 = Direct Presentation. If a submitter populates this field for any other transaction type, CBRS replaces the submitted value with spaces and continues to process the record. In this case, the TO Certificate Number Status field has a value of 1 = System Changed. You can refer to the record layouts to see the various occasions where CBRS might modify submitted data. Example of System Rejected When an asset or tax lot record is rejected, CBRS rejects the asset record and all its accompanying tax lots. CBRS treats an asset record and its tax lots as a package: when one piece is rejected, the entire package is rejected. Application Input and Output 37

38 The example below illustrates what the MRO can contain when an asset record is rejected, but the t ax lot record conforms to system rules: In this example, the CBRS package has one asset record and one accompanying tax lot record. The asset record is rejected because the submitting firm populated the Settlement Date of Transfer field with ( is the CBRS format for January 35, 2011). CBRS rejects the record because January 35, 2011 is not a valid calendar date. The tax lot record passes system rules and edits with no errors. On the Cost Basis Transaction MRO file for the asset record, the System Action field has a value of 3 = System Rejected. The System Reject Reason field has a value of 01 = Invalid Field. The AO Settlement Date of Transfer Status has a value of 2 = Error. This combination of fields tells the submitter that the record is rejected, and why. (Other fields on the MRO are populated as well, this example highlights fields related to the reject.) On the Cost Basis Transaction MRO file for the accompanying tax lot record, the System Action field has a value of 3 = System Rejected. The System Reject Reason field has a value of 02 = Associated Record is Invalid. There are no 2 = Error values for the tax lot record Status fields because it passes system rules and edits. This combination of fields tells the submitter that record is rejected because of a problem with the associated record. (Other fields on the MRO are populated as well, this example highlights fields related to the reject.) Output Dropped Records CBRS drops a transaction in the rare occasion when a submitter enters their firm number incorrectly, and CBRS does not recognize the submitter. In this case, CBRS rejects the record because the submitter is invalid. However, CBRS cannot return the record to the submitter because the incorrect submitter number does not match the submitter s actual number, so CBRS does not know where to return the record. LPA Number and LPA Type A Transfer Agent uses its LPA number as the deliverer of the DRS DO, and its Transfer Agent number as the Submitting Firm Number on the CBRS record. Broker-dealers and banks who receive cost basis from a transfer agent for Transaction Type 28 = DRS Profile/DO benefit from having the LPA number on the transaction output because they can use the LPA number to more easily match the DRS Profile/DO asset transfer to the CBRS record for that transfer. On the MRO file, CBRS provides the Limited Participant Account (LPA) number for cost basis passed on Direct Registration System (DRS) Profile/Deliver Order (DO) transactions. There are two fields on the Transaction MRO file, LPA Number and LPA Type. LPA Type is always DTCPRT. The LPA Number is the LPA number that a transfer agent uses to send DRS DO transactions through DTC. CBRS populates these two fields only for original and corrected asset and tax lot records, for Transaction Type 28 = DRS Profile/DO. Otherwise, both fields will contain spaces. In order for CBRS to populate the LPA Number in this field, DTCC s Account Administration department sets up a relationship between a transfer agent s Transfer Agent (TA) number that is currently eligible for CBRS, Application Input and Output 38

39 and it s LPA Number. This functionality applies only to Transfer Agents who are eligible for CBRS and have a Limited Participant Account number. Transfer Agents who would like to opt out of this functionality should contact the Client Account Representative Team at RMsupport@DTCC.com. Application Input and Output 39

40 5. BEST PRACTICES This section contains Best Practices for CBRS as defined by various industry groups. These Best Practices are not enforced by system rules, but instead are guidance to the users of CBRS on how to handle certain situations and populate certain fields. While CBRS cannot enforce these Best Practices with system rules, these guidelines help all CBRS users process the submitted and received data in a consistent way. Resolve issues with the contra party If a firm has received cost basis data from a submitting firm that it cannot apply or did not expect, the firm should contact the contra party directly. Similarly, if a firm does not receive cost basis information that it is expecting, the firm should contact the contra party directly. DTCC is not able to access firm data to respond to inquiries. Firms should both submit and receive records If a firm is a CBRS user, the firm should submit cost basis information, not just receive cost basis information. CBRS users are expected to participate on both sides and for all transaction types. While CBRS users are expected to participate on both sides, some firms may have limitations on which transaction types they can submit. Firms with these limitations are expected to receive all transaction types supported by CBRS, either through an automated computer to computer connection or via DTCC web portal. When should a firm send the CBRS record? Send an Original record on the day after the item settles. If it is not possible to send the CBRS record(s) the day after settlement, send them as soon as possible after settlement. Send a Corrected record within fifteen days of knowing that the record needs to be corrected. Send a Firm Reject record within two business days, except for a certificate deposit. For a certificate deposit, if a firm receives partial shares from the Transfer Agent, wait to send the reject. A receiver of an asset should wait at least fifteen days after the asset has been received before sending a Request record to the deliverer of the asset. Corrected Record From the submitter s point of view, the first time it sends basis, the submitter should send an original record. If the basis on a particular lot changes after the original record is sent, the submitter should send a corrected record. From the receiver s point of view, if a contra party receives corrected basis but has not first received original basis for the lot, it should treat the basis as original and apply the basis appropriately (i.e. a contra party should not firm reject a corrected record that does not have a corresponding original record). Best Practices 40

41 ? Which fields, when changed, should prompt the submitter to send a corrected record? Any field that has been changed should be sent as a correction. If the data element is important enough to be changed, it is important enough to re-send. If you replay the basis on your books, and everything stays the same, do not send a corrected record to the receiver. If you replay the basis on your books and anything is different, send a corrected record to the receiver. Some Scenarios about Corrected Records? Example: A fund sends a CBRS record that is system rejected by CBRS. When the fund resubmits the record, marked as corrected, does CBRS accept the record? In other words does CBRS have any edits in place to check that an original record passed through successfully before a corrected record can be sent? No. CBRS does not confirm that a corrected record has a corresponding preceding original record. In that case, would a firm reject a corrected record back to the fund because it hasn t received an original record? Best Practices suggest that a receiver should not firm reject a corrected record that does not have a corresponding original record(s). A receiver should be prepared to accept either an original or corrected record.? What about this scenario: a fund sends a CBRS record, it passes CBRS edits and is sent to the receivi ng firm, and then the firm responds with a firm reject record. When the fund responds with a corrected record, would the firm accept the corrected record, even though they did not accept the original record? Yes. The receiving firm should accept the corrected record. These Best Practices hold true regardless of what type of CBRS user is the submitter or receiver: these same Best Practices apply to broker-dealers, funds, banks, and equity transfer agents/issuers. Firm Reject and Request Records The scenarios below describe the Best Practices for the different Record Content types. In each example, Firm A has transferred an asset to Firm B, and now needs to pass the cost basis for that transferred asset. Firm A sends an original record to Firm B. Some of the data is incorrect, so Firm B sends a firm reject record to Firm A. Firm A responds with a corrected record. Firm B has not received cost basis from Firm A. Firm B sends a request record to Firm A. Firm A responds with an original record. Firm A sends an original record to Firm C. Firm C is not the correct receiving firm for this record, so it sends a firm reject record to Firm A. Firm A responds by sending an original record to Firm B. Note that in the last example above, while CBRS does not require Firm C to send a Firm Reject, it would be helpful for Firm C to Firm Reject the record so Firm A knows there is a problem. CBRS does not reject the Best Practices 41

42 record if it passes all of the system rules and edits, so the only way Firm A knows there is a problem with the record is if Firm C rejects it. A user can also firm reject corrected records. Let s look at an example, using the same Firm A, Firm B, and Firm C as above: Firm A sends a corrected record to Firm C. Firm C is not the correct receiving firm for this record, so it sends a firm reject record to Firm A. Firm A responds by sending a corrected record to Firm B. A firm reject is not an appropriate response to a firm reject record or a request record. Best Practices recommend that a firm disregard a firm reject or request record that it has received in error.? Can a CBRS user send a corrected record without first sending an original record? CBRS does not reject a corrected record that was not preceded by an original record, but the contra party may not accept the corrected record in this scenario. Best Practices say do not send a corrected record unless you have first sent an original record. The following Best Practices apply to many of the fields in the Firm Reject and Request record content types (full list below): If Record content indicator is 03 = Firm reject record, then the fields below should be populated with the value on the Original asset record or Corrected asset record received. If Record content indicator is 04 = Request record, then the fields below should be populated with the value on the original transfer that triggered the need to pass cost basis. List of fields where these two Best Practices apply: Receiver Customer Account Number Deliverer Customer Account Number ISIN Country Code ISIN Security Issue ID (CUSIP number) ISIN Security Check Digit Put - Call Indicator Option Symbol Option Expiration Date Option Strike Price Integer Option Strike Price Decimal Asset Description Asset Category Total Position Quantity Date Transfer was Initiated Settlement Date of Transfer Position Code Shares to Cover Short Indicator Best Practices 42

43 Do not Request Basis for Lots Received with Unknown Basis A receiving firm should not request basis from a submitting firm if the receiver receives lots that have unknown basis. Here are two examples: Firm A sends cost basis to Firm B on a transfer of 300 shares of XYZ. Firm A sends an asset record for 300 shares, and two tax lots, one for 100 shares and one for 200 shares. The tax lot for 100 shares has a cost amount associated with it, but the 200 share lot has an unknown cost amount. The records pass CBRS processing, so Firm B receives all of this information. o Best Practices say that Firm B should not request information on the 200 share lot that has unknown cost. A firm should use a request record only when it has not received any information at all. Firm A sends an ACATS transfer to Firm B that contains 10 assets. Firm A sends CBRS records to Firm B, but only for 9 assets. o In this case, Firm B should send a request record for the one asset for which it did not receive a CBRS record. Submitting and Receiving Noncovered Accounts and Noncovered Security Types Below are the Best Practices about submitting and receiving data for noncovered accounts and noncovered security types: From the submitter s perspective: 1. If you have cost basis, send it 2. If you do not have cost basis, do not send anything (e.g., do not send a record that says the lot is noncovered and has unknown cost basis) From the contra party s perspective: 1. Do not send a request record for an noncovered account or an noncovered security type 2. If you receive basis for an account that is noncovered, do not reject it 3. If you receive basis for a security that you think is noncovered, do not reject it Covered Fixed Income Assets that were transferred in 2014 The regulations for the transfer of fixed income assets became effective on January 1, However, a CBRS user may receive basis on a fixed income asset in 2014 which the submitter has marked as covered. When a CBRS user receives cost basis for fixed income assets in 2014 which are marked as covered, the receiver needs to determine whether to consider those assets covered. The CBRS Quantity should equal the Original Asset Transfer Quantity, i.e. Avoid Fractional Shares In the previous version of CBRS, some firms sent an asset transfer for a round lot, and then follow up in CBRS with a quantity that includes fractional shares. To avoid this discrepancy, the quantity transferred through Best Practices 43

44 CBRS should equal the quantity of the original asset transfer that triggered the need to pass cost basis. If the original asset transfer did not have fractional shares, neither should the CBRS record.? If there is a corporate action during an ACATS transfer, what happens in CBRS? Scenario: 100 shares of an asset are transferred via ACATS. During the ACATS transfer, there is a stock dividend for 2 shares. In ACATS, the deliverer should send a residual balance of 2 shares. In CBRS, the deliverer should send a CBRS record for 100 shares, and then another CBRS record for 2 shares. This answer follows the best practice that the CBRS quantity should always equal the quantity of the asset transfer. Populating CBRS Records for ACATS Reclaim or Fail Reversal Transactions Follow these steps for populating the Submitting Firm, Contra Firm, Deliverer Customer Account Number, and Receiver Customer Account Number fields for ACATS reclaim (RCL) or fail reversal (FRV) transactions: The Submitting Firm is the firm submitting the CBRS record (and is the delivering firm of the asset in ACATS). The Contra Firm is the firm receiving the CBRS record (and is the receiving firm of the asset in ACATS). The Deliverer Customer Account Number is the account number at the firm delivering assets in the "original" ACATS transfer, and the Receiver Customer Account Number is the account number at the firm receiving assets in the "original" ACATS transfer. Both customer account number fields do not correspond to the "new" Deliverer/Receiver Customer Account Number for the FRV or RCL. For example, Firm 789 submits a TIF for a full transfer to Firm 123. Firm 123 delivers the assets to Firm 789. (For the purpose of this example, the transfer contains only long assets.) Later, Firm 123 submits a fail reversal or a reclaim to Firm 789. Firm 789 sends the asset to 123 in response. The customer account number at Firm 123 is 10203, and the customer account number at Firm 789 is The following table illustrates how CBRS records should be populated for the full transfer and the fail reversal or reclaim. ACATS CBRS Transfer Type TIF Submitter Asset Deliver Asset Receiver Deliverer Customer Account Number Receiver Customer Account Number Record Type Submitting Firm Contra Firm Deliverer Cust. Account Number Receiver Cust. Account Number FUL Original FUL Corrected FUL Firm Reject FUL Request FRV/ RCL FRV/ RCL Original Corrected Best Practices 44

45 ACATS FRV/ RCL CBRS Firm Reject FRV/ RCL Request Sending a CBRS Record for an Asset Held in Multiple Currencies? Do I send multiple asset records for the same security if I hold the security in different currencies? Remember that the quantity of the asset record should correspond to the quantity of the original transfer that triggered the need to pass cost basis. You can indicate at the tax lot level which lots are held in a currency other than US Dollars. Sending Cost Basis for an Invalid Certificate? If a transfer agent receives a deposit for 100 shares consisting of two 50 shares certificates, and only one certificate can be processed at this time (e.g., one of the certificates is invalid), how should cost basis be returned? Best Practices suggest that, since in this case a transfer agent can only re-register 50 shares, it would only pass basis on the 50 shares that are re-registered. Field Specific Best Practices After each field name below: (A) indicates a field on the Asset Input; (T), a field on the Tax Lot Input; and (A/T), a field on both the Asset and Tax Lot Input. Transaction Type (A/T) CBRS users should not firm reject a record based solely on a mismatched Transaction Type. If a user receives a record with a Transaction Type it does not recognize, the user should examine other criteria in the record to match an asset transfer Transaction type 05 = Mutual Fund Transfer (non-acats) [change of broker-dealer] is for broker-to-broker transfers, and requests for this transaction type should not be sent to a fund. Transfer Control Number (A/T) If transaction type is 02 = Free DTC Deliver Order (Non-ACATS), or 03 = Valued DTC Deliver Order; this field should be the IMS Transaction ID number (16 bytes) as specified on the original transaction processed at DTC. If transaction type is 26 = DWAC Deposit, 27 = Certificate Deposit, 28 = DRS Profile/DO, 36 = DWAC Withdrawal, 37 = Withdrawal by Transfer (WT); this field contains a reference ID number whose values and Best Practices 45

46 number of bytes changes depending on the original transaction processed at DTC. The CBRS Transfer Control Number should equal the reference ID for DAMP Deposits at DTC. If transaction type is 41 = Direct Presentation, this field should be 26 characters: Julian Date (3 bytes: DDD) + Participant Number (5 bytes) + Customer Account Number (18 bytes) If transaction type is 46 = Fund to Firm Mutual Fund Transfer or 51 = Firm to Fund Mutual Fund Transfer; this field is the FundSERV control number. Firms should use the Fund/SERV Control # from the ACATS Fund/SERV Statistics File, and add the letters CATS to the front of it, in order to match the number that Funds should provide in this field. If transaction type is 56 = Networking Transaction, then the control number is the Networking control number For all other transaction types, 04 = Conversion, 05 = Mutual Fund Transfer (Non-ACATS), 06 = FED (non- ACATS), 07 = Physical Movement Settlement, 08 = OCC transfer, 09 = Non-Domestic Depository, 10 = Other, 57 = Manual Mutual Fund Transfer; this field is the control number agreed upon by the contraparties involved in the original securities transaction. If Transaction Type is 58=AIP, this field should follow be: D Direct Transfer Indicator (1 byte) +Julian Date (3 bytes: DDD) + Submitting Participant Number (8 bytes) + Receiving Customer Account Number (15 bytes)+ Unique sequential number (3 bytes) If Transaction Type is 59=Alternative Investments (Non-AIP), this field should be D for Direct Transfer Indicator (1 byte) + NSCC Participant Number for the Fund or CBRS Member Number (8 bytes) + Last Digit of Current Year (1 byte)+ Julian Date (3 bytes)+ Unique sequential number (5 bytes). Alternate Control Number (A/T) For Transaction Types 46 = Fund to Firm Mutual Fund Transfer or 51 = Firm to Fund Mutual Fund Transfer, populate this field with the ACATS Control Number. For Transaction Type 58=AIP, populate this field with the AIP SIN Number (NSCC Security Identifier). Asset Description (A/T) Populate this field for all records. Asset Category (A) Take care to populate this field accurately. This value should correspond to the asset category for the transferred security. This is an important field that drives validation rules for the rest of the record. Use the Options asset category for reporting 1256 Options. Best Practices 46

47 Transferring Basis on Rights or Warrants A deliverer should only pass basis for warrants or rights that were purchased for cash. Cost Basis allocated under rule 305 or 307 should not be transferred; instead, it should be re-allocated back to the underlying security. Receiver Customer Account Number (A/T) If a firm does not have a receiver customer account number, Best Practices suggest entering the words not provided in this field. For ACATS items this Best Practice does not apply a submitting firm does have a receiver customer account number for assets transferred through ACATS. Deliverer Customer Account Number (A/T) The submitter should populate this field for Transaction Type 04 = Conversion. Total Position Quantity/Tax Lot Quantity (A/T)? How do I populate the quantity fields for fixed income and options? For example, if I transfer 10 option contracts at 100 shares per contract, should I populate the quantity field with 10 or 100? For an option, the submitter should populate the quantity field with the number of contracts. So, in this example, the submitter should populate the quantity field with 10.? For fixed income, if I transfer 10 bonds with a total face value of 10,000, should I populate the quantity field with 10 or 10,000? For a fixed income asset, the submitter should populate the quantity field with the asset s face value. In this example, the submitter should populate the quantity field with 10,000. Date Transfer was Initiated and Settlement Date of Transfer (A) Best Practices define the Settlement Date of Transfer, in general, as the day the position leaves the submitter s books. For options transferred through ACATS, the submitter should populate the Settlement Date of Transfer with the ACATS settlement date. For options transferred at the Options Clearing Corporation (OCC) outside of ACATS, the submitter should populate the Settlement Date of Transfer with the date the option settled at the OCC. For covered fixed income transferred through the Federal Reserve, the submitter should use the date the transfer settled at the Fed to populate the Settlement Date of Transfer. Best Practices 47

48 While the Date Transfer was Initiated may not be known for the underlying transfer, the Settlement Date of Transfer should be known. One or the other of these dates is required. Best Practices suggest that the Settlement Date of Transfer will be used for most records. Disposition Method Used (A) The field has a limited list of values of potential disposition methods. As it states in the record layouts, the list of values for this field are not exhaustive there are other methods that firms use. The field is also Optional, and not all firms use it. For firms who do use it, the field could provide value-added information for the underlying customer. Best Practices suggest that firms should try to use the field on a best-efforts basis. Shares to Cover Short Indicator (A) This field is used in the following example: A customer moves to Firm A, and requests that Firm A delivers shares to Firm B to cover a short at Firm B. When Firm A sends the cost basis, populating the Shares to Cover Short Indicator with the Y value tells Firm B that the intent is to close out the short. Sometimes in this situation, Firm B establishes a new position, has both a short account and a long position on its books, and awaits customer instructions. This field eliminates this last step. Noncovered/Pending Indicator (T) If field is left blank, the receiver will consider the lot covered if the Position Code is L = Long. If the Position Code is S = Short, the covered status of the position is not determined until the shares are acquired. Examples of when a submitter would use the Noncovered account value or the Pending value: Noncovered account: an Noncovered account can be either an account belonging to an exempt recipient (such as a C Corporation) or an exempt account (such as a retirement account) Pending: an account can be pending because the asset is a part of an Employee Stock Plan, or because the submitter is waiting for cost basis information from a prior firm Certificate in Customer Name: this field should be used to indicate that a certain tax lot is restricted or physical. These shares are always noncovered from the broker-dealer s perspective: the Transfer Agent has responsibility for the cost basis. The broker may have the basis on its books, but if so, it has been provided by the customer. For example, a broker-dealer receives a transfer of 1,000 shares of ABC, 300 restricted shares 700 cash shares. The broker-dealer segregates the restricted shares from the cash shares. When the contra party sends cost basis to the broker-dealer through CBRS, it uses this new indicator to mark the 300 shares as noncovered using the Certificate in Customer name value. When the broker-dealer receives the cost basis, it knows to apply the basis for these 300 shares to the 300 restricted shares in the transfer. Without this indicator, the receiver would not know what basis to apply to the restricted shares. Best Practices 48

49 Please note that the submitter should not use the 01 = Noncovered lot value in this situation. Shares may be noncovered for other reasons. If the shares are noncovered because they are restricted or physical, the submitter needs to use the value Certificate in Customer Name.? What are some examples of when different values in the Noncovered/Pending Indicator would be used? Noncovered lot. A noncovered lot could occur in this scenario: a customer transfers 300 shares of equity XYZ, containing two tax lots, one lot of 100 shares, purchased on 05/29/2009, and one lot of 200 shares purchased on 06/01/2011. The lot of 100 shares was purchased before the IRS regulations came into effect for equities so this lot is uncovered. The lot of 200 shares was purchased after the IRS regulations came into effect for equities, so this lot is covered. When passing cost basis on this customer transfer, the record for the lot of 100 shares would have a value of Noncovered lot in the Noncovered/Pending Indicator. Noncovered account. An example of a Noncovered account is a retirement account. Pending. Pending could occur in this scenario: A customer transfers an asset from Firm A to Firm B. A month later, the same customer transfers an asset from Firm B to Firm C. Firm B is obligated to send cost basis to Firm C, but has not yet received the basis from Firm A. Firm B sends the lots to Firm C, marked as Pending. Firm B sends corrected records to Firm C once it has received the cost basis from Firm A.? Scenario: I send a CBRS transaction to a contra party that includes a lot that is pending (i.e. has a 03 = Pending value in the Noncovered/Pending Indicator) because I am waiting for basis from the prior firm. When I received that basis, and then send it on to the contra party, do I send an original record or a corrected record? In this scenario, you should send a corrected record. Taxes Reported by Issuer/Transfer Agent (T) In some cases the issuer/transfer agent does the 1099-B reporting. This field allows the issuer/transfer agent to tell the broker-dealer that it has already done the 1099-B reporting for a given tax lot, in order to avoid both parties reporting the information.? Does the Taxes Reported by Issuer/Transfer Agent field apply only to the current year s tax reporting? No. There can be circumstances where the reorg event affects multiple years. Gifted or Inherited Indicator (T) The gifted and/or inherited information in CBRS cannot be cross-referenced with the value in the Gift/Donation Indicator in ACATS. The gifted and/or inherited information in CBRS is used to establish the value of the tax lot. The gift indicator in ACATS is used to tell the receiver that the deliverer is sending a transfer where the account titles do not match, and the deliverer or requestor is aware of this discrepancy. It is always recommended to deliver gifted or inherited securities and not request them through ACATS. However, if you do not abide by this rule and request an inherited or gifted security, it is the obligation of the receiver to step up the basis. Best Practices 49

50 ? What is the significance of the 03 = Inherited, then Gifted value in the Gifted or Inherited Indicator on the Tax Lot Input record layout? This value exists because of its impact on the holding period for the lot. Gifted shares have a short term holding period, inherited shares have a long term holding period. If an investor gifts inherited shares, the lot should keep its long term holding period. For example, an investor inherits shares. The same investor then gives these shares to his daughter. In this case, populate the Gifted or Inherited Indicator field with the value 03 = Inherited, the Gifted, in order to inform the receiver of the CBRS record that the lot should keep its long term holding period.? Where on CBRS can I indicate the date of inheritance? The submitter does not enter the date of inheritance, as in the date the shares were inherited. Instead, the submitter should enter the date of death of the decedent in the Acquisition Date of Tax Lot field. Fair Market Value as of Date of Gift (T) The submitter should populate this field if the value is known for a gifted security. For bonds, should be unadjusted for amortization or accretion. Basis adjustments should be made for all other security types. Position Code (T) In this field, transfer agents and mutual funds should default to L = Long position. Position Code for Options (T)? When I am submitting a record to CBRS, how do I differentiate between writing the call and buying the call? You can indicate whether you bought the call or wrote the call using the Position Code field to label the tax lot as either Long or Short. Populating Acquisition Date of Tax Lot field when Date is Unknown (T) How a submitter populates the Acquisition Date of Tax Lot field varies depending on the scenario. Below are the two scenarios: 1. When the acquisition date and the cost basis are both unknown a. Populate the Noncovered/Pending Indicator field with the appropriate value for the lot. Populating this field tells the receiver that the lot is noncovered or pending. b. Do not populate any date or cost fields c. Populate the Zero Basis Indicator with the value 02 = Unknown 2. When the acquisition date is unknown and the cost basis is known Best Practices 50

51 a. Populate the Noncovered/Pending Indicator field with the appropriate value for the lot. Populating this field will tell the receiver that the lot is noncovered or pending. b. Best Practices suggest you can a date of 01/01/1901* ( in CBRS record layout format) to signify an unknown date. *The date 01/01/1901 can mean different things: If the lot is noncovered, 01/01/1901 can mean various dates or unknown date If the lot is covered, 01/01/1901 means various dates c. Populate the cost field(s) as applicable? When can 01/01/1901 mean various? Best practices suggest that IRS regulations allow the grouping of lots (covered lots into one group, noncovered lots into another group) for lots older than five years for mutual funds and shares in a DRP plan. So in this context, when lots are grouped together, the 01/01/1901 date can mean various. Original Acquisition Date for Wash Sale Adjustment (T) The submitter should populate this field if the tax lot is the result of a wash sale. If the Original Acquisition Date for Wash Sale Adjustment is submitted, then the Wash Sale Adjustment Amount must also be populated. Wash Sale Adjustment Amount (T) The Wash Sale Adjustment Amount is commonly referred to as the Disallowance Amount. The Wash Sale Adjustment Amount represents the disallowed loss from a wash sale, which has been added to the Tax Lot Current Cost. In the event that the Wash Sale equals zero for a fixed income security, then the Wash Sale Adjustment Amount field must be populated with zero, blanks are not accepted in this scenario. Neither the Tax Lot Original Cost, nor Tax Lot Current Cost basis of a fixed income security should be adjusted for the disallowed loss resulting from a wash sale. The Wash Sale Adjustment Amount should be applied to the Tax Lot Original Cost, and Tax Lot Current Cost basis for the disallowed amount when assets are not fixed income. Exchange Rate (T) This field should be the spot exchange rate used while converting the Tax Lot Current Cost. The rate is the amount of local currency equal to one dollar. For example, if ISO Currency Code = JPY, the value in this field is for acquisition date 12/01/2009. Tax Lot Original Cost (T) In this field, the submitter should include total original cost for asset backed securities. Best Practices 51

52 In the event of a wash sale for an equity security, the Tax Lot Original Cost should be adjusted for the Wash Sale Adjustment Amount. For covered fixed income securities, do not adjust the Tax Lot Original Cost for corporate actions. The Tax Lot Original Cost should be populated for asset backed securities. If you are not amortizing or accreting a bond, the original cost and current cost for that bond could be the same. Tax Lot Current Cost (T) If Position Code is S = Short and the security is covered by the legislation, this field should equal the gross proceeds of the short position. For lots using average cost, populate this field with the pro-rata average cost. This field includes this Best Practice: For a noncovered average cost mutual fund position with at least one lot with unknown basis, populate this field with the actual current cost for each lot with known basis. This means that the submitter should populate this field with the actual current cost for the lot without consideration for averaging. For example, a submitter has three lots. The submitter should populate the Tax Lot Current cost fields for the lots as follows: Tax lot quantity Tax lot cost Value in the Tax Lot Current Cost field 100 $700 $ $2,000 $2, unknown $0, with a value of 02 = Unknown in the Zero Basis Indicator field The submitter should not average all three lots together, and then populate the Tax Lot Current Cost field for each lot with its corresponding portion of the average. Best Practices indicate that a submitter should send the cost of the individual lot. However, sometimes the average cost is the only value that is known. In that case the submitter should send the average cost value in the Tax Lot Current Cost field. If neither the individual cost of the lot nor the average cost of the lot is known, the submitter should send the lot with unknown cost.? How do I indicate a negative value in the Tax Lot Current Cost field? CBRS does not accept negative numbers. If you are not amortizing or accreting a bond, the original cost and current cost for that bond could be the same. Best Practices 52

53 Adjust the Tax Lot Current Cost field for fixed income securities in the event of wash sales, corporate actions, return of principal, OID, accretion, amortization as of the settlement date of the transfer. Populate the Tax Lot Current Cost field when reporting Section 1256 Options. Zero Basis Indicator (T)? When would a firm use the value 01 = True Zero? A submitter could use the value 01 = True Zero in dealing with rights, or the return of capital. Tax Lot Original Unit Price (T) Populate for a mortgage-backed security, if known. Employee Plan Shares Indicator (T) If this field is populated, a third party not the submitter should provide the cost basis for the tax lot. Fields for Fixed Income Elections (T) The table below describes how a submitter should fill out the five fields related to fixed income elections, if the submitter is following the defaults outlined in the IRS regulations. Note Default refers to the regulations, and not to a CBRS system default. CBRS does not automatically populate any of these fields. Best Practices 53

54 Election Election to Accrue Market Discount using a constant yield *If lot was acquired prior to 1/1/2015 when IRS changed default election this should be reported as N. Election to Include Market Discount in Income currently Election to Amortize Premium Spot Rate election for interest accruals with respect to a covered debt instrument denominated in a currency other than the U.S. dollar. (Y is only a valid value for securities denominated in foreign currency) Default per IRS regulations Y* N Y N Purchase/ Dividend Reinvestment Indicator (T) The IRS default value for the Purchase / Dividend Reinvestment Indicator is P= purchase. Market Discount (T) Market Discount information if applicable, should be included in the cost basis submissions for only CD s, Commercial Paper, Corporates, Foreign Debt, Governments, Mortgage Backed Securities, Municipals and Zeroes. Below is a summary of Best Practices applicable to populating the Market Discount and Accrued Unrealized Market Discount (pg. 60) field. Market Discount Situation Include Market Discount in Income Election Market Discount Reported on the Transfer Statement Current Cost Note: Should not include wash sale adjustments or carryover amount Accrued Unrealized Market Discount Reported on the Transfer Statement Election to include market discount in income currently is not made No Amount should be 0.00 Market Discount is deferred. Current Cost should not include any accretion of Market Discount Report the amount of Market Discount that has accrued from acquisition date through the transfer date. Election to include market discount in income currently is made Yes Amount should reflect the accreted Market Discount from acquisition date to settlement date of transfer. Current Cost should include the amount of accreted Market Discount from acquisition date to the settlement date of transfer Report All accrued market discount has been realized and applied to cost. Best Practices 54

55 Market Discount Situation Include Market Discount in Income Election Market Discount Reported on the Transfer Statement Current Cost Note: Should not include wash sale adjustments or carryover amount Accrued Unrealized Market Discount Reported on the Transfer Statement Election to include market discount in income has been made and subsequently revoked No Report the amount of market discount accrued for the years where the election to include market discount was in force. Current Cost should include the accreted Market Discount from settlement date of acquisition to the date of revocation Report the amount of market discount accrued for years where the election include market discount in income was not in force. Default of debt instrument purchased at a market discount Current Inclusion election is not made No Amount should be 0.00 Current Cost should not include any accretion of Market Discount Report the amount of Market Discount that has accrued from acquisition date through the transfer date. Default of debt instrument purchased at a market discount - Current Inclusion election is made Yes Amount should reflect the accreted Market Discount through the settlement date of the transfer Current cost should reflect the Market Discount amount accreted through the settlement date of the transfer Report All market discount accrued has been realized and applied to cost. Bond Premium (T) Bond Premium information, if applicable, should be included in the cost basis submissions for only CD s, Commercial Paper, Corporates, Foreign Debt, Governments, Mortgage Backed Securities, Municipals and Zeroes. Below is a summary of Best Practices applicable to populating the Bond Premium field. Bond Premium Situation Amortize Bond Premium Election Bond Premium Current Cost Note: Should not include wash sale adjustments or carryover amount Broker Default to Amortize Yes Amount should reflect amortized Bond Premium from acquisition date to the date of the last interest payment (last interest payment date since amortization is only allocable to interest payments) Current Cost adjusted for the amount of amortized Bond Premium from acquisition date to the date of last interest payment (i.e. last interest payment date since amortization is only allocable to interest payments) Client Notification to not amortize No For bonds purchased in the year the election is made or thereafter, this amount should be For bonds purchased in the year the election is made or thereafter, Current Cost should be unadjusted for any Bond Premium Best Practices 55

56 Bond Premium For bonds purchased in a year prior to the election, this amount should be the amount of amortized Bond Premium from the settlement date of acquisition to the date of the notification to not amortize For bonds purchased in a year prior to the election, Current Cost should be adjusted by the amount of amortized premium from the date of acquisition to the date of the notification to not amortize Revocation of notification to not amortize Yes Amount of amortization from the date of revocation to the settlement date of transfer Current Cost adjusted for the amount of Bond Premium amortized from the date of revocation to the settlement date of transfer Default of debt purchased at a Bond Premium with the default to amortize Yes Amount of amortized Bond Premium from settlement date of acquisition to the date of the last interest payment received Cost adjusted for the amount of amortized Bond Premium from date of acquisition to the date of the last interest payment received Acquisition Premium (T) Acquisition Premium information if applicable, should be included in the cost basis submissions for only CD s, Commercial Paper, Corporates, Foreign Debt, Governments, Mortgage Backed Securities, Municipals and Zeroes. Below is a summary of Best Practices applicable to populating the Acquisition Premium field. Acquisition Premium Situation Acquisition Premium Current Cost Note: Should not include wash sale adjustments or carryover amount No Applicable Election Default of debt purchased at an acquisition premium Amount of acquisition premium accreted from the settlement date of acquisition through the settlement date of transfer For OID bonds purchased at par or at a bond premium, this amount should be 0.00 or equal to the amount of accrued OID Amount of acquisition premium accreted from the settlement date of acquisition through the settlement date of transfer Cost adjusted for the amount of acquisition premium accreted from the settlement date of acquisition through the settlement date of transfer For OID bonds purchased at par or at a bond premium, this amount should be 0.00 or equal to the amount of accrued OID Cost adjusted for the amount of acquisition premium accreted from the settlement date of acquisition through the settlement date of transfer Accrued OID (T) Best Practices 56

57 Accrued OID information, if applicable, should be included in the cost basis submissions for only CD s, Commercial Paper, Corporates, Foreign Debt, Governments, Mortgage Backed Securities, Municipals and Zeroes. Below is a summary of Best Practices applicable to populating the Accrued OID field. Accrued Original Issue Discount (OID) Situation Default of debt issued at an Original Issue Discount Complex Debt with Original issue discount payments of NQSI Accrued OID (Cost basis is not adjusted down for Payment in Kind payments) Amount of OID accreted from the settlement date of acquisition through the settlement date of transfer Amount of OID accreted from the settlement date of acquisition through the settlement date of transfer minus either the amount of NQSI or the projected payment, whichever is applicable. Current Cost Note: Should not include wash sale adjustments or carryover amount Original cost basis plus amount of OID accreted from the settlement date of acquisition through the settlement date of transfer. Original cost plus OID minus either the NQSI or projected payment, whichever is applicable. Last Adjustment Date (T) The Last Adjustment Date occurs when the last basis adjustment was made to account for Bond Premium, Acquisition premium, Market Discount or OID. Examples of how the fields would be populated are described below. This is meant to provide further descriptive information and is not meant to be an exhaustive list or include all possible scenarios. Notes You should consider the requirements of each of the defaults and elections, how they may interact, the cost paid by the client and considerations for the potential for an election to be made in a calendar year after the asset is acquired and for the potential that an election may be revoked. The adjustment happens on the last coupon date, not on the settlement date. Examples For OID bonds neither purchased at a bond premium or market discount (i.e. either at an acquisition premium or at the adjusted issue price), the Last Adjustment Date should be the settlement date of the transfer as this is the last date, as of which OID was accreted or amortized, and there is no other type of cost basis adjustments due to premiums or discounts. For bonds purchased at a bond premium (OID or non-oid) o If the lot is not being amortized, the Last Adjustment Date would be the acquisition date of the lot since no amortization has occurred. o If the position is being amortized, the Last Adjustment Date would generally be the date of the last interest payment because that would have been the last date the cost basis was adjusted for the amortization of bond premium.» Acquisition Premium will offset the OID for OID bonds purchased at a bond premium Best Practices 57

58 » Note that if interest is not paid on a scheduled interest payment date (for ex ample, because the bond is in default), any accrued amortized bond premium accrued since the last actual interest payment would generally not be applied to the cost basis. o If an election to amortize bond premium has been revoked, the Last Adjustment Date would be the date of the last interest payment in the year prior to the date of the revocation. This is because elections apply to a full year so a revocation made during the year would apply for the full calendar year. For bonds purchased at a market discount (non-oid) o If market discount is being deferred, the Last Adjustment Date would be the acquisition date of the lot since no accreted market discount has been applied to the cost basis. o If market discount is being included in current income, the Last Adjustment Date would be the settlement date of the transfer since accrued market discount is applied to basis daily and the delivering firm will report market discount through the settlement date of the transfer. o If the election to include accrued market discount in current income is revoked, the Last Adjustment Date would be December 31 of the year prior to the date of the revocation. This is because elections apply to a full year so a revocation made during the year would apply for the full calendar year. For OID bonds purchased at a market discount, the Last Adjustment Date should be the last date as of which the cost basis for that lot was adjusted for a market discount. This is because OID accrues daily and the date the basis was last adjusted for OID is always the settlement date of the transfer. However, the date the bond was last adjusted for the market discount could be different under certain circumstances. o OID bond purchased at a bond premium Last Adjustment Date is the date of the last interest payment, as of which the basis was last adjusted for bond premium (Acquisition premium and OID nets to 0.00 so the relevant date is the last interest payment date used for amortization of bond premium) o OID bond purchased at a market discount - Last Adjustment Date is the last date the cost basis was adjusted for market discount. If market discount is deferred, Last Adjustment Date is the Acquisition Date.» If market discount is included in income currently, the Last Adjustment Date is the settlement date of the transfer since market discount accrues daily.» If the market discount election to include the discount in income currently was revoked, the Last Adjustment Date is December 31 of the year prior to the revocation (since elections always apply to a full calendar year). Carryover Offset (T) The amount of Amortized Bond Premium to be carried over to the date of disposition (The Current Cost basis should NOT be adjusted by this amount). The Carryover Offset amount must be carried over until the disposition of the asset. This occurs in the instance where debt purchased at a Bond premium is not amortized and then in a later year, the client revokes the decision. Best Practices 58

59 For example; if a client elects to not amortize in year 1, then subsequently changes their election to amortize going forward, the year 1 amortization would be placed in the Carryover Offset field. Prior Year Mark to Market (T) The Prior Year Mark to Market field is exclusively used for Section 1256 options. Beginning 1/1/2016, cost basis for Section 1256 options must be submitted on the transfer statements. If the 1256 option was acquired prior to 12/31of the prior year, then report the prior year end fair-market value used in reporting unrealized profit or (loss) on open contracts in box 10 of the 1099-B If the 1256 option was acquired in the same year as the transfer, then submit zero in the Prior Year Mark to Market field. For all assets other than 1256 options, leave this field blank. The CBRS output will show the blank on the output file. For example, a 1256 option was acquired last year and transferred today. The original cost was $10, the year-end value was $12 and the current market value is $15. When reporting the cost basis for the transfer, populate as follows: Tax Lot Original Cost: $ 10 (optional) Tax Lot Current Cost: $ 10 Prior Year Mark to Market: $ 12 Settlement Date (T) Settlement date of the original acquisition for the Tax Lot being transferred. Best Practice: If Settlement Date is unknown, this field should be populated with the date the accrual calculations began. The Settlement Date field is conditionally required for covered fixed income. CBRS will reject the transaction if not populated for covered fixed income. Accrued Unrealized Market Discount (T) The amount of market discount on the fixed income security that has been accrued but not realized. Best Practice: This field should be populated for debt securities purchased at a market discount where the market discount has been deferred. The value should be the amount of the deferred market discount through the settlement date of the transfer. The Accrued Unrealized Market Discount will be an optional field. Best Practices 59

60 Below the Market Discount section (pg. 54) is a summary of scenarios and Best Practices applicable to populating the Accrued Unrealized Market Discount field. Best Practices 60

61 6. FILE INPUT AND OUTPUT VIA COMMON DATA TRANSFER SERVICE (CDTS) General Information The Common Data Transfer Service, or CDTS, is DTCC's proprietary file input and output management system. It enables DTCC and its participants to securely and reliably automate the exchange of files over a network link. Once a secure network connection is configured, minimal set-up is required to automate inbound and outbound file transfers. Two industry standard file transfer protocols are supported, FTP and Connect: Direct (NDM). DTCC operations staff actively monitors these systems and addresses any failed transmissions. Both systems are available in the test and production environments. Input: The transaction input has a CDTS input header and CDTS input trailer. Output: The transaction output has a CDTS output header, and a CBRS application output header, and a CBRS application output trailer. There is no CDTS output trailer. The table below shows the order of the header, transaction records, and trailer in the file: Input CDTS input header CBRS records CDTS input trailer Output CDTS output header CBRS application header CBRS records CBRS application trailer For questions about CDTS, please call the Customer Support Hotline at , option 5, then option 1. File Input CBRS uses only variable length input files. There are no fixed length input files. The CBRS input cut-off time is 4:00 PM ET. The Input SYSID for CBRS input files is for Production. A CDTS input header record is required. It is the first record in any file transmitted. The CDTS input trailer record is also required, and is the last record in any file transmitted. The record layouts for the CDTS input header and trailer records (named Datatrak Header and Trailer in the layout) can be found on the dtcc.com website at: File Input and Output via Common Data Transfer Service (CDTS) 61

62 The asset and tax lot input records are always 1,000 bytes. The transaction output is always 1,500. Why are these records variable? While it may not be apparent in the current record layouts, the records have variable functionality built into them for future expansion. For now, the asset and tax lot input records are always 1,000 bytes long, and the transaction output record is always 1,500 bytes long. In the future, the record layouts can be expanded to as large as 4,000 bytes. We have left this extra room to allow for more fields, in case they become necessary in future versions of the system. This possible expansion gives the records the variable designation. We do not make the records 4,000 bytes today because we do not want to take up disk space that we do not need. NSCC s Automated Customer Account Transfer Service, or ACATS, uses this functionality, so we ll look at ACATS as an example. Here s what the Record Length field looks like in the variable ACATS Asset Input record layout: Field Name Record Length Length Start End Type Opt/Req/Cond Comments NUM REQ Asset Type Record Length Option 497 Mutual Fund 550 Insurance 1700 Foreign 831 All Others 431 These different lengths illustrate the use of a variable record. The length of the record varies based on the type of asset in the record. CBRS is not currently using this functionality, but has the option to use it in the future if the need arises.? Can a firm send multiple files to CBRS during the day? Yes. You can send multiple files each day, through both the computer to computer connection and WebDirect. CBRS combines all the input and processes it at the end of the day, and sends the output in one file.? If my firm does not have any CBRS transactions to submit to DTCC on a given day, can I send an empty file? Yes, you can send an empty file with only a CDTS header. You can also not send any file at all. File Output: Transaction MRO A CBRS application header record is the first record in the CBRS transaction MRO file. See below for the CBRS application header and trailer record layouts. File Input and Output via Common Data Transfer Service (CDTS) 62

63 The Output Product ID for the CBRS Transaction MRO is The record layout for the CDTS output header record (named the Autoroute Header in the layout) can be found on the dtcc.com website at: If my firm does not have any CBRS transaction output for a given day (meaning my firm is not the submitter or receiver of any CBRS records), will I receive a transaction output file? The answer is yes if you are set up to receive an empty file. When you set up your access to CBRS, you can ask to receive an empty CBRS transaction output file in this situation. The file will contain only a CDTS header. File Output: Cost Basis User Master File MRO The Cost Basis User Master File MRO does not have an application header. The file has a CDTS header. The record layout for the CDTS output header record (named the AutoRoute Header in the layout) can be found on the dtcc.com website at: The Output Product ID for the Cost Basis User Master File MRO is Limits on when Output Files and Data are Available Files are stored in DTCC web portal for four business days. DTCC can retransmit files for fourteen calendar days. Data is available for viewing on DTCC web screens, using the Cost Basis Inquiry screen, and downloading to an Excel spreadsheet, for twenty-five business days. After the twenty-five business day window has passed, DTCC will not be able to provide CBRS data to users. Users are responsible for storing their data on a long-term basis. Input and Output Timing Input: for today s processing date, firms can submit CBRS records between 8 PM ET yesterday and 4 PM ET today. o Files submitted between 8 PM ET yesterday and 4 PM ET today should have today s date in the header o Files with today s header date, submitted between 4 PM and 8 PM today, are processed with tomorrow s processing date o Files with tomorrow s header date, submitted between 4 PM and 8 PM today, are rejected by CDTS File Input and Output via Common Data Transfer Service (CDTS) 63

64 Output: for today s processing date, CBRS transaction output and the Daily Deposit File for Transfer Agents is available by 9 PM ET today. The Cost Basis User Master File is available by 11 PM ET today. This schedule applies to input and output through both the automated computer to computer connection, and via DTCC web portal. CBRS Application Output Header A CBRS application header record is the first record in any CBRS MRO file transmitted. The following is the layout of this application header: CBRS APPLICATION OUTPUT HEADER Description Length Start End Type Comments Record Type A/N H Record Length A/N 61 Variable Length AutoRoute Product ID A/N File Description A/N Cost Basis Transaction MRO Distribution Side A/N Last four digits of the distribution firm s CBRS Account ID number Processing Date A/N CCYYMMDD Multi-Cycle Indicator A/N Single Cycle = [space] Multi-Cycle Nbr A/N Zeroes Variable-Length Record Indicator A/N Variable Length = * Future Use A/N Spaces End of Record CBRS Application Output Trailer A CBRS application trailer record is the last record in any CBRS MRO file transmitted. The following is the layout of this application trailer: CBRS APPLICATION OUTPUT TRAILER Description Length Start End Type Comments Record Type A/N T Record Length A/N 70 Variable Length AutoRoute Product ID A/N File Description A/N Cost Basis Transaction MRO File Input and Output via Common Data Transfer Service (CDTS) 64

65 CBRS APPLICATION OUTPUT TRAILER Distribution Side A/N Last four digits of the distribution firm s CBRS Account ID number Processing Date A/N CCYYMMDD Multi-Cycle Indicator A/N Single Cycle = [space] Multi-Cycle Nbr A/N Zeroes Variable-Length Record Indicator A/N Variable Length = * Item Count A/N Transmission count (includes Header and Trailer) Future Use A/N Spaces End of Record File Input and Output via Common Data Transfer Service (CDTS) 65

66 7. CBRS AND DTCC WEB PORTAL DTCC Web Portal Workflow To use CBRS via DTCC web portal, the secure Internet portal, you must follow a series of steps. At the most basic level, these steps are: 1. Create transactions. 2. Submit transactions to a batch. Note: Please be aware that transactions submitted to a batch have not yet been sent to DTCC. 3. Send your batches of transactions to DTCC. 4. Download files. In addition to the steps above, your workflow may involve steps such as editing data, searching or deleting transactions, or uploading a spreadsheet. This guide contains information on these steps, as well as all CBRS functionality available through the DTCC web portal. Logging on to the system 1. To access the screen to log into CBRS over the internet through DTCC web portal, go to: 2. After you have logged in, to use CBRS in the production environment, click on COST Basis under the Available Production Products section: 3. To use CBRS in the testing environment, click on under the Available PSE, PSE2, and PTE Products section: If you have trouble logging on to the system, contact Customer Support, Creating Transactions You can create either an asset or a tax lot record. An asset record can be one of the four possible record content types: original, corrected, firm reject, or request. A tax lot record can be either an original record or a corrected record. A transaction refers to all assets that have the same transfer control number. Some transfer types, such as an ACATS transfer, can have multiple assets per transfer control number. Other transfer types, such as a free deliver order, have one asset per transfer control number. Each asset can include one or more tax lots. CBRS and DTCC Web Portal 66

67 Assets are required for all transactions. Tax lots are required for transactions with a record content type of either original or corrected. When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating or modifying pending transactions that must then be sent to DTCC. For more information, see Sending a Batch to DTCC. You can also create transactions via spreadsheet upload. For more information, see The Spreadsheet Upload Process. 1. On the CBRS home page, under Transaction Inputs, click Cost Basis Input. CBRS and DTCC Web Portal 67

68 The Cost Basis Reporting Service page appears. The Transfer Information section of this page is pictured below. 2. Enter all the information you have regarding the transaction. Note: Required fields are identified with a red asterisk (*). 3. In the Asset Information section, enter information for the first asset for this transaction. CBRS and DTCC Web Portal 68

69 4. Enter information for the first tax lot for this asset. Note: The tax lot input screen automatically appears when, in the Asset Record Content Indicator field, you choose 01 = Original asset record or 02 = Corrected asset record. If you choose 03 = Firm reject record or 04 = Request record, the tax lot input screen will not appear. There are no tax lots associated with the Firm reject or Request record types. 5. If you have more than one tax lot for this asset, click the More Tax Lots radio button and click Submit. The transaction page reappears, with the transaction and the asset information already populated. 6. Enter the additional tax lot information. Repeat steps 5 and 6 for each tax lot associated with this asset. 7. If you have more than one asset for this transaction, finish entering the tax lot information. Then click the More Assets radio button and click Submit. The transaction page reappears, with the transaction information already populated. 8. Enter the additional asset information. 9. Enter the tax lot information as described in steps 4 through 6 for the next asset. 10. Repeat steps 7 through 9 as needed until you have entered all the asset and tax lot information for this transaction. Note: You must finish entering all the asset and tax lot information associated with the transaction before clicking Submit the final time. You cannot add additional asset or tax lot information for a transaction by editing an existing Cost Basis record. For details on adding additional asset or tax lot information to a transaction, see Adding More Assets to a Transaction or Adding More Tax Lots to a Transaction. 11. Click Submit. The "Previous transaction was processed successfully" message appears on the Cost Basis Reporting Service screen. CBRS and DTCC Web Portal 69

70 After you submit the transaction, CBRS adds it to the previously submitted transactions (if any exist). After you are finished entering all transactions, follow the steps to send the batch to DTCC. For more information, see Sending a Batch to DTCC. CBRS processes all the files at the same time at the end of the day. Working with Pending Transactions Adding More Assets to a Transaction If you have already entered a transaction and need to enter another asset, follow the steps shown below. Note: When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating or modifying pending transactions that must then be sent to DTCC. For more information, see Sending a Batch to DTCC. 1. On the CBRS home page, under Transaction Inputs, click Cost Basis Input. CBRS and DTCC Web Portal 70

71 The Cost Basis Reporting Service page appears. 2. Enter the same information you already entered about this transaction. Note: Required fields are identified with a red asterisk (*). 3. Enter information for the additional asset for this transaction. 4. Enter information for the first tax lot for this asset. Note: The tax lot input screen automatically appears when, in the Asset Record Content Indicator field, you choose 01 = Original asset record or 02 = Corrected asset record. If you choose 03 = Firm reject record or 04 = Request record, the tax lot input screen will not appear. There are no tax lots associated with the Firm reject or Request record types. CBRS and DTCC Web Portal 71

72 5. If you have more than one tax lot for this asset, click the More Tax Lots radio button and click Submit. The transaction page reappears, with the transaction and the asset information already populated. 6. Enter the additional tax lot information. Repeat steps 5 and 6 for each tax lot associated with this asset. 7. If you have more than one asset to add to this transaction, finish entering the tax lot information. Then click the More Assets radio button and click Submit. The transaction page reappears, with the transaction information already populated. 8. Enter the additional asset information. 9. Enter the tax lot information as described in steps 4 through 6 for the next asset. 10. Repeat steps 7 through 9 as needed until you have entered all the additional asset and tax lot information for this transaction. Note: You must finish entering all the asset and tax lot information associated with the transaction before clicking Submit the final time. 11. Click Submit. The "Previous transaction was processed successfully" message appears on the Cost Basis Reporting Service page. After you submit the transaction, CBRS adds it to the previously submitted transactions. After you are finished entering all transactions, follow the steps to send the batch to DTCC. For more information, see Sending a Batch to DTCC. CBRS processes all the files at the same time at the end of the day. Adding More Tax Lots to a Transaction If you have already entered a transaction and need to enter another tax lot, follow these steps: 1. On the CBRS home page, under Transaction Inputs, click Cost Basis Input. CBRS and DTCC Web Portal 72

73 The Cost Basis Reporting Service page appears. 2. Enter the same Transfer Information you already entered about this transaction. Note: Required fields are identified with a red asterisk (*). CBRS and DTCC Web Portal 73

74 3. Enter the Asset Information that you already entered for this asset. 4. Enter the additional tax lot information for this asset. Note: The tax lot input screen automatically appears when, in the Asset Record Content Indicator field, you choose 01 = Original asset record or 02 = Corrected asset record. If you choose 03 = Firm reject record or 04 = Request record, the tax lot input screen will not appear. There are no tax lots associated with the Firm reject or Request record types. 5. If you have more than one additional tax lot for this asset, click the More Tax Lots radio button and click Submit. The transaction page reappears, with the transaction and the asset information already populated. 6. Enter the additional tax lot information. Repeat steps 5 and 6 for each tax lot associated with this asset. Note: You must finish entering all the asset and tax lot information associated with the transaction before clicking Submit the final time. 7. Click Submit. The "Previous transaction was processed successfully." message appears on the Cost Basis Reporting Service page. CBRS and DTCC Web Portal 74

75 After you submit the transaction, CBRS adds it to the previously submitted transactions. After you are finished entering all transactions, follow the steps to send the batch to DTCC. For more information, see Sending a Batch to DTCC. CBRS processes all the files at the same time at the end of the day. Listing and Searching Pending Transactions You can display transactions that you have submitted but have not yet sent to DTCC. You can either list all existing transactions, or you can use search criteria to display specific transactions. After displaying a set of transactions, you can view, update, or delete transfer information, assets, and tax lots for those transactions. To list all pending transactions: 1. From the CBRS home page, under Data Review/Send, click Summary. CBRS and DTCC Web Portal 75

76 2. The Summary page appears. 3. Click List. The Transfer List page appears, displaying all current pending transactions. CBRS and DTCC Web Portal 76

77 To search pending transactions: 1. From the CBRS home page, under Data Review/Send, click Summary. The Summary page appears. 2. Click Search. CBRS and DTCC Web Portal 77

78 The Cost Basis Search page appears. 3. Using the fields provided, type and select your search criteria. 4. Click either Search button. The Transfer List page appears, displaying the transactions that match your selection criteria. Notes: To view, update, and delete transfer information for transactions displayed on the Transfer List page click the corresponding link in the Item Number column. For more information, see Viewing and Updating Transfer Information. To view, update, and delete asset and tax lot information for transactions displayed on the Transfer List page click the corresponding link in the Number Of Assets column. For more information, see Viewing and Updating Assets and Viewing and Updating Tax Lots. CBRS and DTCC Web Portal 78

79 Deleting Transactions You can delete transactions from the Transfer List page or the Transfer Information Update page. Deleting transactions from the Transfer List 1. Display the transactions you want to work with. You can use the search function to search for specific pending transactions or the list function to list all pending transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. For more information, see Listing and Searching Pending Transactions. The Cost Basis Search page appears. 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. CBRS and DTCC Web Portal 79

80 3. Click the check box next to one or more transactions. To select all transactions, click the Select All checkbox. 4. Click Delete. Note: When you click Delete, the transfer information and all associated assets and tax lots are deleted. Deleting transactions from the Transfer Information Update page 1. Display the transactions you want to work with. You can use the search function to search for specific pending transactions or the list function to list all pending transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. For more information, see Listing and Searching Pending Transactions. 2. The Cost Basis Search page appears. 3. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. CBRS and DTCC Web Portal 80

81 4. Click the Item Number link for the transaction you want delete. 5. The Cost Basis Transfer Information Update page appears. 6. Click either Delete button. Note: When you click Delete, the transfer information and all associated assets and tax lots are deleted. Editing Transfer Information, Asset Records, and Tax Lot Records Viewing and Updating Transfer Information You can view and update the transfer information for transactions you have submitted but have not yet sent to DTCC. Notes: When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating or modifying pending transactions that must then be sent to DTCC. For more information, see Sending a Batch to DTCC. 1. Display the transaction you want to work with. You can use the list function to list all pending transactions, or you can use the search function to search for specific pending transactions. For more information, see Listing and Searching Pending CBRS and DTCC Web Portal 81

82 Transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. The Cost Basis Search page appears. 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. 3. Click the Item Number link for the transaction you want to work with. 4. The Cost Basis Transfer Information Update page appears. CBRS and DTCC Web Portal 82

83 5. To update the transfer information, modify the appropriate information displayed and click Submit. Note: You cannot modify the following fields on the Transfer Information Update page:» Submitting Firm» Contra Firm Type» Asset Record Content Indicator» Transaction Type Viewing and Updating Assets For transactions that you have submitted but have not yet sent to DTCC, you can view and update the assets assigned to those transactions. Notes: When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating or modifying pending transactions that must then be sent to DTCC. For more information, see Sending a Batch to DTCC. 1. Display the transaction you want to work with. You can use the list function to list all pending transactions, or you can use the search function to search for specific pending transactions. For more information, see Listing and Searching Pending Transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. The Cost Basis Search page appears. CBRS and DTCC Web Portal 83

84 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. 3. Click the link in the Number Of Assets column for the transaction you want to work with. The Assets List page appears. 4. On the Assets List page, click the Asset Number for the asset that you want to modify. The Cost Basis Asset page appears. CBRS and DTCC Web Portal 84

85 5. Modify the asset details as needed, and click Submit. Deleting Assets You can delete assets via the Assets List page or via the Update Asset page. Notes When you delete an asset, any tax lots associated with that asset are also deleted. You cannot delete the last asset for a transaction. When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating or modifying pending transactions that you must then send to DTCC. For more information, see Sending a Batch to DTCC. To delete assets via the Assets List page: 1. Display the transaction you want to work with. You can use the list function to list all pending transactions, or you can use the search function to search for specific pending transactions. For more information, see Listing and Searching Pending Transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. CBRS and DTCC Web Portal 85

86 The Cost Basis Search page appears. 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. 3. Click the link in the Number Of Assets column for the transaction you want to work with. The Assets List page appears. CBRS and DTCC Web Portal 86

87 4. Click the check box next to one or more assets. To select all assets, click the Select All checkbox. 5. Click Delete. To delete assets from the Update Asset page: 1. Display the transaction you want to work with. You can use the list function to list all pending transactions, or you can use the search function to search for specific pending transactions. For more information, see Listing and Searching Pending Transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. The Cost Basis Search page appears. CBRS and DTCC Web Portal 87

88 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. 3. Click the link in the Number Of Assets column for the transaction you want to work with. The Assets List page appears. 4. Click the link in the Asset Number column for the transaction you want to work with. The Cost Basis Asset page appears. CBRS and DTCC Web Portal 88

89 5. Click Delete. Note: When you click Delete, the transfer information and all associated assets and tax lots are deleted. Viewing and Updating Tax Lots For transactions that you have submitted but have not yet sent to DTCC, you can view and update the tax lots assigned to assets for those transactions. Notes: When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating or modifying pending transactions that must then be sent to DTCC. For more information, see Sending a Batch to DTCC. 1. Display the transaction you want to work with. You can use the list function to list all pending transactions, or you can use the search function to search for specific pending transactions. For more information, see Listing and Searching Pending Transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. CBRS and DTCC Web Portal 89

90 The Cost Basis Search page appears. 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. 3. Click the link in the Number Of Assets column for the transaction you want to work with. The Assets List page appears. 4. On the Assets List page, click the link in the Number of Tax Lots column for the asset that you want to modify. The Tax Lot List page appears. CBRS and DTCC Web Portal 90

91 5. Click the link in the Tax Lot Number column for the tax lot that you want to work with. The Cost Basis Tax Lot page appears. 6. Modify the tax lot details as needed, and click Submit. Deleting Tax Lots For transactions that you have created but have not yet sent to DTCC, you can delete the tax lots assigned to assets for those transactions. You can delete tax lots via the Tax Lot List page or via the Cost Basis Tax Lot page. You cannot delete the last tax lot for a transaction. Notes: When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating or modifying pending transactions that must then be sent to DTCC. For more information, see Sending a Batch to DTCC. To delete tax lots via the Tax Lot List page: CBRS and DTCC Web Portal 91

92 1. Display the transaction you want to work with. You can use the list function to list all pending transactions, or you can use the search function to search for specific pending transactions. For more information, see Listing and Searching Pending Transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. The Cost Basis Search page appears. 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. 3. Click the link in the Number Of Assets column for the transaction you want to work with. The Assets List page appears. CBRS and DTCC Web Portal 92

93 4. On the Assets List page, click the link in the Number of Tax Lots column for the asset that you want to modify. The Tax Lot List page appears. 5. Click the checkbox next to one or more tax lots. To select all tax lots, click the Select All checkbox. 6. Click Delete. To delete tax lots via the Cost Basis Tax Lot page: 1. Display the transaction you want to work with. You can use the list function to list all pending transactions, or you can use the search function to search for specific pending transactions. For more information, see Listing and Searching Pending Transactions. If you choose List, skip to step 3. If you use Search, continue on to the next step. CBRS and DTCC Web Portal 93

94 The Cost Basis Search page appears. 2. Using the fields provided, type and select your search criteria and then click either Search button. The Transfer List page appears. 3. Click the link in the Number Of Assets column for the transaction you want to work with. The Assets List page appears. CBRS and DTCC Web Portal 94

95 4. On the Assets List page, click the link in the Number of Tax Lots column for the asset that you want to modify. The Tax Lot List page appears. 5. Click the link in the Tax Lot Number column for the tax lot that you want to work with. The Cost Basis Tax Lot page appears. CBRS and DTCC Web Portal 95

96 6. Click Delete. Working With Batches Sending a Batch to DTCC When you submit transactions in CBRS (after creating new transactions or modifying existing transactions), you are creating pending transactions that must then be sent to DTCC. You can send your pending transactions to DTCC as a single batch. CBRS and DTCC Web Portal 96

97 1. On the CBRS home page, under Data Review/Send, click Send. The Send page appears. 2. Click the check box in the Select column next to the product that you want to send. Note: To display a list of transactions in a batch, click the Cost Basis link in the Product column. 3. Click Submit. 4. Wait for the message informing you that the batch was sent to Datatrak. CBRS and DTCC Web Portal 97

98 If you do not receive this message, resend the batch. For more information, see Resending a Batch. Viewing a Sent Batch You can view the transfer information, asset, and tax lot details for transactions you have sent to DTCC. 1. On the CBRS home page, under Data Review/Send, click Sent Batches. CBRS and DTCC Web Portal 98

99 The Sent Batches page appears. 2. Click the link in the Batch Number column for the batch you want to view. The Sent Batch page appears with a list of products that were sent in that batch. 3. Click a product to view (in this case, Cost Basis). The Cost Basis List page appears, displaying the basic information about the transactions. 4. Click the link in the Item Number column for the Cost Basis Transfer Information page that you want to view. or Click the link in the Number Of Assets column for the Cost Basis Search List Assets page that you want to view. Verifying That Your File Was Sent Successfully (Using the Confirms Utility) After sending data to DTCC, you can use the Confirms utility to verify that the file was sent successfully. 1. After sending your data, make a note of the batch number displayed on the page. For more information on sending batches, see Sending a Batch to DTCC and Uploading the Spreadsheet. CBRS and DTCC Web Portal 99

100 2. Return to the portal page (that is, the page that displays the production products that are available to you). 3. Under Available Production Products, click Utilities. The File and Report Utilities page appears. 4. Click Confirms. You should see a link displaying the batch you have submitted. This tells you your batch was submitted. CBRS and DTCC Web Portal 100

101 5. To see if your batch was accepted, click the link. The Confirm Display page appears, providing details about your data submission. CBRS displays either ACCEPTED or REJECTED in the lower-left corner. Resending a Batch 1. On the CBRS home page, under Data Review/Send, click Sent Batches. CBRS and DTCC Web Portal 101

102 The Sent Batches page appears. 2. Find the correct batch number to resend. 3. Click the appropriate check box in the Re-Send column. 4. Click Re-send. The Sent Batches page appears with a "Batch Number: xxxxxxxxx was resent" message. Uploading Records to CBRS As an alternative to using the Transaction Input pages of the CBRS web interface (see Creating Transactions), you can submit your cost basis records to CBRS by: 1) entering your asset and tax lot records into an MS Excel spreadsheet, and then 2) uploading that spreadsheet to CBRS via the DTCC web portal. Notes Your spreadsheet cannot exceed 1000 rows. CBRS supports MS Excel 2007 or later (.xlsx). Spreadsheets created with earlier versions may not work. CBRS and DTCC Web Portal 102

103 Overview of the Upload process Start by downloading the most recent version of the spreadsheet template. For more information, see Start With the Most Recent Spreadsheet Template. 1. Enter your new assets and tax lots. CBRS and DTCC Web Portal 103

104 For more details, see Preparing the Upload Spreadsheet and Example Spreadsheets. 2. Save the spreadsheet as an Excel Workbook file. 3. On the CBRS Upload page, submit the upload spreadsheet you have created. For more information, see Uploading the Spreadsheet. CBRS and DTCC Web Portal 104

105 4. If the system rejects your spreadsheet, investigate and correct the errors, and submit the spreadsheet again. For more information, see Reviewing and Correcting Upload Errors. 5. If the system accepts your spreadsheet, the Batch Confirm page appears. For the purpose of future inquiries, make a note of the batch number assigned to your upload. For more information, see Verifying That Your File Was Sent Successfully (Using the Confirms Utility). CBRS and DTCC Web Portal 105

106 Start With the Most Recent Spreadsheet Template To prepare spreadsheets for upload, make sure you have the latest version of the spreadsheet template. 1. From the Cost Basis Reporting Service home page, under CBRS Upload, click CBRS Upload Tool. The CBRS Upload page appears. 2. In the Spreadsheet Template section, click the Click to download Spreadsheet Template link. Your computer's response depends on which browser software you are using and how that browser is configured. In the most typical setup, you are prompted to either open or save the file. 3. To open the file, click Open. 4. To save the file, click Save. CBRS and DTCC Web Portal 106

107 5. After you have downloaded and saved the spreadsheet template (see Start With the Most Recent Spreadsheet Template), you are ready to create new spreadsheets containing new asset and tax lot records. For earlier versions of MS Excel Notes CBRS supports MS Excel 2007 or later (.xlsx). Spreadsheets created with earlier versions may not work. If you are using a pre-2007 version of MS Excel to create your spreadsheet, you may see a message regarding MS Excel versio ns when you open the template. If you see this message, click OK to continue opening the template. When you save your spreadsheet, save it in compatibility mode (Click Save As, then choose the compatibility mode option). Spreadsheet Template column headers After you open the spreadsheet template, you will notice that it is color-coded. The table below shows what each color signifies. Headings for asset record fields have a blue background. CBRS and DTCC Web Portal 107

108 Headings for required asset record fields have a blue background with red text. Headings for tax lot record fields have a beige background. To display hints for a column, move your mouse over any column heading with a red triangle in the upper-right corner. CBRS and DTCC Web Portal 108

109 The Spreadsheet at a Glance Here are the key points you need to understand when setting up your spreadsheet: Enter asset details on the left side of the spreadsheet, under the blue column headings. Enter tax lot details on the right side of the spreadsheet, under the beige column headings. Enter an asset and the first tax lot for an asset on the same row. CBRS and DTCC Web Portal 109

110 Use the rows below an asset to add any additional tax lots for that asset. CBRS and DTCC Web Portal 110

111 Add additional assets and tax lots as needed. Tips: Do not insert rows above row 3 (the column headings). Do not modify the order of the columns. Do not modify the format of the columns. Your spreadsheet can have a maximum of 1000 rows. Use the drop-down menus where available. For date fields, the required format is MM/DD/YYYY. For example, enter January 3, 2011, as "01/03/2011" (without the quotes). For participant ID fields, leading zeros are not required. For example, you can enter as simply 123. Not all fields are required. Some fields are conditional; that is, data from one field may influence whether another field is required. Please consult the CBRS Record Layouts and the CBRS User Guide on the DTCC Learning website for more information about required and conditional fields. CBRS and DTCC Web Portal 111

112 Adding an Asset with One Tax Lot In this case, you'll enter both the asset and tax lot details on the first row. The asset information appears under the blue headings on the left half of the spreadsheet; the tax lot information appears under the beige headings on the right half of the spreadsheet. 1. In the CBRS Record Type column of the first row, use the drop-down menu to select A (for Asset). 2. Type all of the applicable asset information in the asset columns, identified by the column headings with a blue background. 3. In the same row, scroll to the right and under the beige column headings, type the tax lot details. Adding an Asset with Multiple Tax Lots When you are entering an asset with more than one tax lot, you will enter the additional tax lot information below the first tax lot. 1. Type the first asset and tax lot in the first row. See Adding an Asset with One Tax Lot above for more details. CBRS and DTCC Web Portal 112

113 2. For each additional tax lot, do the following: a. In the CBRS Record Type column, use the drop-down menu to select T (for additional tax lots). Note: Please note that the asset fields in this row now appear in blue. Because the asset fields for the additional tax lots are the same as the original asset, you should not retype this information. b. Scroll to the right side of the spreadsheet, and under the beige columns, type the information for the next tax lot. c. Repeat steps a and b for each additional tax lot. CBRS and DTCC Web Portal 113

114 Adding Multiple Asset Records You may have a number of assets to upload, some with just one tax lot, some with multiple tax lots. 1. Type the first asset and tax lot in the first row. See Adding an Asset with One Tax Lot above for more details. 2. For each additional asset, do the following: a. In the CBRS Record Type column, use the drop-down menu to select A (for Asset). b. Type all of the asset information in the asset columns, identified by the column headings with a blue background. c. In the same row, scroll to the right side of the spreadsheet, and under the beige column headings, type the information for the first tax lot. 3. For each additional tax lot within a specific asset, do the following: a. In the CBRS Record Type column, use the drop-down menu to select T (for additional Tax lots). Note: Please note that the asset fields in this row now appear in blue. Because the asset fields for the additional tax lots are the same as the original asset, you should not retype this information. b. Scroll to the right side of the spreadsheet, and under the beige columns, type the information for the next tax lot. c. Repeat these steps for each additional tax lot. CBRS and DTCC Web Portal 114

115 Adding an Asset without a Tax Lot (Firm Reject and Request Records Only) If you are submitting firm reject or request records, you can add an asset record on the spreadsheet without a tax lot. For more details, see the CBRS User Guide and Record Layouts. 1. Enter the first asset record and tax lot in the first available row: a. In the CBRS Record Type column, use the drop-down menu to select A (for Asset). b. Type all of the asset information in the asset columns, identified by the column headings with a blue background. Example Spreadsheets The examples below demonstrate completed spreadsheets for various scenarios. Example One: An Asset With One Tax Lot The asset information and tax lot information all appear on the same row. The blue headings indicate asset fields; the beige headings indicate tax lot fields. CBRS and DTCC Web Portal 115

116 This is the left side of the spreadsheet, with one asset entered: This is the right side of the same spreadsheet, with the one tax lot entered: CBRS and DTCC Web Portal 116

117 Example Two: An Asset With Multiple Tax Lots The asset and the first tax lot appear on one row, followed by the additional tax lots on subsequent rows. For the additional tax lots, the asset fields are filled with blue, indicating this information is the same as the first asset record and should not be retyped. This is the left side of the spreadsheet, with one asset entered and multiple tax lots added: Below is the right side of the same spreadsheet, showing the tax lot details added under the beige column headings. Note that the first tax lot appears on the same row as the asset; each additional tax lot appears on the rows below. CBRS and DTCC Web Portal 117

118 Example Three: Multiple Asset Records Each new asset includes one tax lot record on the same row. Additional tax lot records appear on subsequent rows. Here is the asset side of a spreadsheet with multiple assets: CBRS and DTCC Web Portal 118

119 Here is the tax lot side of a spreadsheet with multiple assets: CBRS and DTCC Web Portal 119

120 Uploading the Spreadsheet After you have prepared your spreadsheet (see Preparing the Upload Spreadsheet), you can upload it via the CBRS web interface. CBRS processes the records you upload at the end of the day. 2. From the Cost Basis Reporting Service home page, under CBRS Upload, click CBRS Upload Tool. The CBRS Upload page appears. 3. Click Browse. 4. Locate the spreadsheet on your computer and select it. 5. Click Submit. CBRS and DTCC Web Portal 120

121 CBRS validates your spreadsheet for the following: 1) File type (must be.xls or.xlsx) 2) Number of rows (must be less than 1000) 3) CBRS Record Type (must be A, for asset, or T, for tax lot) 4) Submitting Firm Number and Submitting Firm Type (must match your firm) If all of the records on your spreadsheet do not pass the validation described above, CBRS rejects your spreadsheet and displays a rejection error message. If the system accepts your spreadsheet, the Batch Confirm page appears. For the purpose of future inquiries, make a note of the batch number assigned to your upload. CBRS and DTCC Web Portal 121

122 When your records reach CBRS, it performs additional validations and produces output to you at the end of the day. Note: After CBRS produces this output, you can use the Cost Basis Inquiry feature that evening or the next business day to view your records. You can also use this feature to research any errors that may have resulted from the validations performed at the end of the day. After you successfully submit your spreadsheet, you cannot view your records until the end-of-day processing has been completed. For more information, see Reviewing and Correcting Upload Errors. Displaying Records Uploaded via Spreadsheet After end-of-day processing, CBRS produces its transaction output to various files, such as the Transaction End of Day (EOD) Download file. You can use this file to see the records you submitted, as well as the records you received. You can also use the Cost Basis Inquiry search function to verify that the records you submit via spreadsheet upload have made it to the CBRS database. For example, you can create a search using "System Rejected" or "System Accepted" as selection criteria, as shown in the image below. For detailed instructions on how to search your records on the CBRS database, see Searching CBRS Transactions. CBRS and DTCC Web Portal 122

123 Notes When you submit CBRS transactions via spreadsheet upload, those records go directly to the CBRS mainframe database. You cannot view or modify these records in pending status as you can with transactions that you enter via manual data entry on the Cost Basis Input page. Modifying Uploaded Information To modify details for any records that you have already uploaded, simply resubmit those records on a new spreadsheet. You cannot use the Transaction Input pages of CBRS web interface to edit the records you have uploaded via spreadsheet. For more details, see Preparing the Upload Spreadsheet. Note Because these records have already been submitted to the CBRS mainframe database, you should resubmit your records using the code for corrected records ("02") in the Record Content Indicator column. Verifying That Your File Was Sent Successfully (Using the Confirms Utility) After sending data to DTCC, you can use the Confirms utility to verify that the file was sent successfully. 1. After sending your data, make a note of the batch number displayed on the page. For more information on sending batches, see: Sending a Batch to DTCC and Uploading the Spreadsheet. 2. Return to the portal page (that is, the page that displays the production products that are available to you). CBRS and DTCC Web Portal 123

124 3. Under Available Production Products, click Utilities. The File and Report Utilities page appears. 4. Click Confirms. You should see a link displaying the batch you have submitted. This tells you your batch was submitted. 5. To see if your batch was accepted, click the link. The Confirm Display page appears, providing details about your data submission. CBRS and DTCC Web Portal 124

125 CBRS displays either ACCEPTED or REJECTED in the lower-left corner. Reviewing and Correcting Spreadsheet Errors Errors You Will See Immediately Upon Submission When you upload transactions via spreadsheet, CBRS immediately checks for the following: 1) File type (must be.xls or.xlsx) 2) Number of rows (must be less than 1000) 3) CBRS Record Type (must be A, for asset, or T, for tax lot) 4) Submitting Firm Number and Submitting Firm Type (must match your firm) When the errors shown above are found, CBRS displays an error message on the web interface. To correct the errors, modify the information as needed on your spreadsheet and repeat the upload process. Note Because these records have not yet been submitted to the CBRS mainframe database, you should resubmit your records using the code for original records ("01") in the Record Content Indicator column. CBRS and DTCC Web Portal 125

126 Errors You Will See After End-of-Day Processing For transactions on spreadsheets that pass the initial validation, CBRS performs additional validations at the end of the day. During end-of-day processing, CBRS checks for badly formatted data, incorrect or missing data, etc. To see any errors generated by end-of-day processing, you can look at the Transaction End of Day (EOD) download file. You can use this file to see the records you submitted as well as the records you received. You can also use the Cost Basis Inquiry search to display errors generated by end-of-day processing. For example, to display all of your transactions that were system rejected, you can create a search that specifies a System Status of "System Rejected" (see the image below). When you display the CBRS Asset Detail or the CBRS Tax Lot Detail pages, CBRS provides details about the error condition that you need to correct. CBRS and DTCC Web Portal 126

127 Here is an example of the CBRS Asset Detail page for an asset record with errors: Here is an example of the CBRS Tax Lot Detail page for a tax lot record with errors: For more information on how to use the Cost Basis Inquiry, see Searching CBRS Transactions. To correct the errors, upload a spreadsheet containing the corrected records. You can upload only the transactions you want to correct, or you can upload all of your transactions. Note Because these records have already been submitted to CBRS, you should resubmit your records using the code for corrected records ("02") in the Record Content Indicator column. CBRS and DTCC Web Portal 127

128 Searching CBRS Transactions You can search the Cost Basis Reporting System database in two ways: Quick Search: Specify a CBRS control number Advanced Search: Enter a combination of search criteria You can display only those transactions for which your firm is either the submitter or receiver. The transactions that match your search criteria appear on the bottom half of the page. When a transac tion has more than one asset, CBRS displays each asset on a separate row. After displaying your search results, you can display details for specific assets and for the tax lots associated with those assets. Cost Basis Inquiry screens, including the download function, may not be available when the application is processing records. This processing occurs four times per day, at approximately 9:15 AM, 11:15 AM, 1:15 PM, and 4:15 PM eastern time. At these times you may not be able to use the inquiry or inquiry download functions. The screens automatically become available again when processing is complete. If you encounter an error at approximately these times, please wait and try your inquiry again at a later time. Quick Search 1. On the CBRS home page, under Transaction Inquiry, click Cost Basis Transaction Inquiry. The Cost Basis Transaction Inquiry page appears. CBRS and DTCC Web Portal 128

129 2. In the Quick Search section, type the CBRS Control Number. 3. Click Search. The Cost Basis Transaction Inquiry page updates to display your search results, one row for each asset found for the transaction(s) that match your search criteria. 4. To download data associated with the transaction displayed, click the selection box(es) for specific assets and then click Download Selected Items. Your data will become available for download via the Data Files page. For more information, see Viewing Cost Basis Files. 5. To view the data associated with a displayed transaction, click the CBRS Control Number link next to that transaction. CBRS and DTCC Web Portal 129

130 The CBRS Asset page appears. 6. From the CBRS asset page, you can view either the detailed asset record or the associated tax lot(s). To view the detailed asset record, click Asset Details. To view the associated tax lot(s), click a link in the Tax Lot Sequence Number column. When you click Asset Details, the CBRS Asset Detail page appears. To export this data to Excel, click Export to Excel. When you click a link in the Tax Lot Sequence Number column, the CBRS Tax Lot Detail page appears. To export this data to Excel, click Export to Excel. CBRS and DTCC Web Portal 130

131 Advanced Search 1. On the CBRS home page, under Transaction Inquiry, click Cost Basis Transaction Inquiry. The Cost Basis Transaction Inquiry page appears. CBRS and DTCC Web Portal 131

132 2. Using the fields provided in the Advanced Search section, enter your search selection criteria. 3. Click Search. CBRS displays your search results in the lower portion of the page. CBRS displays one row for each asset found for the transactions that match your search criteria. CBRS and DTCC Web Portal 132

133 5. To download data associated with the transaction displayed, click the selection box(es) for specific assets and then click Download Selected Items. Your data will become available for download via the Data Files page. It takes approximately 15 to 60 minutes to create the file, depending on the amount of data in the request. For more information, see Downloading Cost Basis Files. Displaying Asset and Tax Lot Details 1. Complete either a quick search or an advanced search. See above for details. Note that CBRS displays one row for each asset found for the transactions that match your search criteria. 2. On the Cost Basis Transaction Inquiry page, in the search results section, in the row for the asset that you are interested in, click the CBRS Control Number. The CBRS Asset page appears. The CBRS Asset page displays information for the asset you chose, along with a list of tax lots submitted for that asset. 3. To download data associated with the tax lots displayed, click the selection box(es) for specific tax lots and then click Download Selected Items. Your data will become available for download via the Data Files page. It takes approximately 15 to 60 minutes to create the file, depending on the amount of data in the request. For more information, see Downloading Cost Basis Files. 4. From the CBRS Asset page, you can display additional asset details or tax lot details:» To display additional asset details, click Asset Details. The CBRS Asset Detail page appears, displaying additional asset details, including the edit status for each field. Note: To open an Excel spreadsheet displaying the information on the Asset Details page, click Export to Excel.» To display tax lot details, in the Tax Lot List section, click the link in the Tax Lot Sequence Number column for the tax lot that you are interested in. The CBRS Tax Lot Detail page appears, displaying additional tax lot details, including the edit status for each field. CBRS and DTCC Web Portal 133

134 Note: To open an Excel spreadsheet displaying the information on the CBRS Tax Lot Detail page, click Export to Excel. Searching for a CBRS User Searching for an Active CBRS Account 1. On the CBRS home page, under Data Inquiry, click Cost Basis User Inquiry. The Cost Basis User Inquiry page appears. 2. You must type the Firm Number and select the Firm Type. CBRS and DTCC Web Portal 134

135 3. Click Search. The Cost Basis User Inquiry page updates to display your search results. The results display the Active Firm that matches your search criteria. Searching for an Inactive CBRS Account 1. On the CBRS home page, under Data Inquiry, click Cost Basis User Inquiry. If the Firm Number is not known, then populate the Firm Number with the Inactive account number known and select the appropriate Firm Type. 2. If the inactive account is a FED number and short name combination being used to find the active CBRS Account number, then populated the Account number with the Fed number and select one of the associated Fed Short Names from the pull down menu. CBRS and DTCC Web Portal 135

136 3. The results returned will display the CBRS Account number. Downloading Cost Basis Files You can view and download reports. You can also download data sets that you have requested via the Cost Basis Inquiry page. For more information, see Searching CBRS Transactions. Note If your firm subscribes to AutoRoute products for direct delivery of machine readable output (MRO) files, then you cannot take the Web MRO. CBRS and DTCC Web Portal 136

137 1. On the CBRS home page, under CBRS Output, click Cost Basis Output Files. The Data Files page appears. 2. In the drop-down menu provided, select the firm number and firm type. 3. Click Submit. CBRS and DTCC Web Portal 137

138 CBRS displays the following reports, depending on which files you have subscribed to receive:» Transaction Request DTCC web portal Download: Firms can use the transaction inquiry function to search and view specific transactions using various criteria, such as ISIN, transfer control number, or Transaction Type. They can then download these requested transactions to Excel. This file contains these specifically requested transactions in Excel format.» Transaction End of Day (EOD) Download: This file contains all transactions for the current processing day in Excel format. It contains the same information provided in the Transaction Machine Readable Output (MRO) report for that day.» Cost Basis User Master File DTCC web portal Download: This file provides a listing of the firms that are active users of CBRS in tilde-delimited format for converting to Excel.» Daily Deposit File for Equity Transfer Agents: For equity transfer agents only. This file contains the deposits for that Transfer Agent for that day, so they know for which deposits they can expect to send cost basis. The file is available through DTCC web portal or on the mainframe for retrieval via the Data Transmission Facility (DTF) function DPCBRS.» Daily Reorg Deposit File for Equity Transfer Agents: For equity transfer agents only. This file contains the reorg deposits for that transfer agent for that day, so they know for which reorg deposits they can expect to send cost basis. The file is available through DTCC web portal or on the mainframe for retrieval via the Data Transmission Facility (DTF) function DRCBRS. Note: The Transaction Request Download file contains the data you downloaded using the quick search or advanced search functions (see Searching CBRS Transactions). After you request the download, it takes approximately 15 to 60 minutes to create the file, depending on the amount of data in the request. 4. Click the File Name of the file or report that you want to download. Internet Explorer prompts you to either open or save the file. CBRS and DTCC Web Portal 138

139 5. Click Save. The Internet Explorer Save As dialog window appears. Use the navigation tools to select a location on your system for the file. 6. In the Save As window, perform these steps: a. Using the navigation tools provided, choose a location on your system to store the file. For example, you can choose to save the file on your desktop. b. In the File name field, you can leave the existing file name or enter a new one. c. In the Save as type field, leave the type set to ".mro." CBRS and DTCC Web Portal 139

140 d. Click Save. 7. To open the file in MS Excel, follow these steps: a. Launch MS Excel. b. Under the Office button, click Open, and then navigate to the location on your system where you have saved the file. Note: In the Open window, in the Files of type: field, select "All Files(*.*)." CBRS and DTCC Web Portal 140

141 c. After locating your file, select it and then click Open. 8. The MS Excel Text Import Wizard - Step 1 of 3 window appears. 9. To finish importing the file, follow these steps: a. In the Original data type section, choose Delimited and click Next. CBRS and DTCC Web Portal 141

142 The MS Excel Text Import Wizard - Step 2 of 3 window appears. b. In the Delimiters section, de-select Tab, then select Other, and type a ~ (tilde) in the space provided. c. Click Finish. The downloaded file opens in MS Excel. If you wish, save and name the file on your system. Size Limit for Transaction Download Files CBRS will produce the Transaction Request and Transaction EOD (end of day) Download files only when the number of records (combined asset and tax lot records both received and submitted) per file is less than 3,000. If a file exceeds this size, CBRS will not create it. Note Firms that expect to exceed this maximum need to be able to take in the Transaction Machine Readable Output (MRO) file (AutoRoute # in Production and # in Test). Time Frames for Files and Data Availability Files are stored in DTCC web portal for four days. Data is available for viewing on DTCC web screens, using the Cost Basis Inquiry screen, and downloading to an Excel spreadsheet, for twenty-five business days. After the twenty-five business day window has passed, DTCC will not be able to provide CBRS data to users. Users are responsible for storing their data on a long-term basis. CBRS and DTCC Web Portal 142

143 DTCC Web Portal Data Entry on Weekends and Holidays Data entered on a weekend or holiday is processed by CBRS on the next valid processing date. For example, a user submits CBRS records via DTCC web portal on Memorial Day, Monday, May 28. CBRS holds these submitted records, and processes them on Tuesday, May 29. The records submitted on Monday are a part of the output produced on Tuesday. CBRS and DTCC Web Portal 143

144 8. JOINING THE SERVICE All financial intermediaries are eligible to apply to use CBRS, including firms who are not currently members of any DTCC subsidiary. Instructions on how to open a CBRS Account, and the necessary forms, are available on DTCC s website at: The forms required to become an eligible user of CBRS depends on a firm s existing relationship with DTCC. The instructions specify the forms that are required in each situation (DTC Participant, DTC Limited Participant utilizing the Direct Registration Service, NSCC Participant, or no relationship to any DTCC subsidiary).? What date should I put as the effective date in the Service Add letter? The effective date in the Service Add letter is the date your firm will be ready to use CBRS in the production environment. This is not the date when your firm will start testing. After you complete the new account process, you will hear back from DTCC that you are eligible to use CBRS. As soon as you are eligible and have set up your access to the system, you can start testing. You can test any time up to when you start in Production, and also past that date as well. There is no end date for testing. As of the effective date, the user will be on the CBRS Master File in Production. Counterparties expect that if you are on that Master File, at a minimum you are able to accept the records sent to you.? I am a Transfer Agent and would like to make my LPA number eligible for CBRS. How do I do that? You need to follow the CBRS New Account process to make the LPA number eligible for CBRS, even if you have one or more Transfer Agent numbers that are already eligible for CBRS. Please see the CBRS User Documentation webpage for the New Account Instructions and forms: Multiple Output File Set-up If your company has both a broker-dealer side and a mutual fund company side, with different participant numbers, you can receive separate output files for the different numbers. The standard set-up is to receive one file, but if you prefer to receive two files please contact your relationship manager and DTCC will adjust the set - up accordingly. CBRS Billing Fees for CBRS records are charged per Asset record. There is no charge for Tax Lot records. Because CBRS is a service offering of DTCC Solutions LLC, the CBRS invoice is issued separately from an NSCC or DTC invoice. System users receive one invoice per CBRS account. If a firm has multiple CBRS accounts, it receives multiple CBRS invoices; for example, if a firm has three CBRS accounts, it receives three CBRS invoices. Joining the Service 144

145 DTCC distributed CBRS invoices on the 7 th business day of the month. Invoices are available via and through DTCC s online billing system. Please contact your Relationship Manager for questions about your CBRS bill.? How do I pay for CBRS? A company that has a settlement account uses its settlement account to pay the balance on its CBRS invoice. A company that does not have a settlement account pays by wire: wire instructions are on the invoice. Joining the Service 145

146 9. USER TESTING Users must complete the CBRS new account forms to become eligible for the service in both testing and production. To be an eligible CBRS user, a firm needs to complete all the required CBRS new account forms and return them to DTCC. The CBRS new account instructions and forms are located at the following link: DTC Participants can expect to receive their new CBRS account in approximately three to five business days after DTCC has received the forms. All other firms are subject to additional compliance screening which extends the amount of time to establish a new account. In these cases, DTCC s Account Administration group will contact each firm as it moves through the approval process. Once a user establishes its CBRS account and connectivity to the system (either via computer to computer connection, DTCC web portal, or both), there are multiple resources available to test data input and output to CBRS.? How do I know which CBRS users are eligible to test? The version of the CBRS master file (whose technical name is the Cost Basis User Master File ) that is available in the test environment lists all CBRS users who are eligible to test. The master file has a column named CBRS Account Start Date. This date corresponds to the date the CBRS user is eligible to use the service in the production environment. All CBRS users who are on the master file in the testing environment are eligible to test. Testing Data Input A user can test data input by using three different counterparties: itself; test accounts, or a testing partner. To test with itself, a firm uses its Firm Account Number from the Cost Basis User Master File (or CBRS User Account Number if it does not have a Firm Account Number) as both the Submitting Firm Number and Type and Receiving Firm Number and Type in the CBRS input record layouts (both Asset and Tax Lot records). Some Transaction Types have requirements for Submitting Firm Type and Contra Firm Type, so if you test with yourself, you will only be able to test the Transaction Types that permit your Firm Type. To test with a test account, a firm uses its Firm Account Number from the Cost Basis User Master File (or CBRS User Account Number if it does not have a Firm Account Number) as the Submitting Firm Number and a test account number as the Receiving Firm Number in the CBRS input record layouts (both Asset and Tax Lot records). The CBRS test accounts are: DTC Participant: DTCPRT DTC Participant: DTCPRT User Testing 146

147 NSCC Participant: NSCPRT NSCC Participant: NSCPRT Transfer Agent: AGTNBR The test Transfer Agent account has two CUSIPs associated with it: 99999X037 and 99999Z024 To test with a testing partner, a user can locate a partner on the list of eligible CBRS users on the Cost Basis User Master File. Once a user has found a testing partner, it uses its Firm Account Number from the Cost Basis User Master File (or CBRS User Account Number if it does not have a Firm Account Number) as the Submitting Firm Number, and uses the testing partner s Firm Account Number (or CBRS User Account Number if it does not have a Firm Account Number) as the Contra Firm Number in the CBRS input record layouts (both Asset and Tax Lot records). Firms can test the following DTC transactions in the testing environment (the U region ): Deposits Branch Deposits DWAC (to test a DWAC, a broker-dealer should coordinate the test with a transfer agent, so the agent can approve the test transactions) It is not possible to test DRS or Withdrawal by Transfer (NWT1 or RWT1) transactions in the U region. Testing Data Output CBRS transaction output and the Daily Deposit File for Transfer Agents are available by 9 PM ET. The Cost Basis User Master File is available by 11 PM ET. On the CBRS transaction output, a firm receives the records it submitted, and the records it received from a testing partner, if applicable. 1 Details about testing the Daily Deposit File for Transfer Agents When a Transfer Agent joins CBRS, it can request to receive the Daily Deposit File for Transfer Agents through DTF, by having signed on to the DPCBRS function using their M or N sign-on. Transfer agents will also be able to download this file through DTCC web portal. DTCC will create two different versions of the Daily Deposit File in the testing environment. On Mondays, the contents of the file will be the data submitted to Production on the previous Friday. On Tuesday through Friday, the contents of the file will be the deposit transactions submitted through the testing environment over the course of the previous week, if any. Please note that in order for a deposit to appear on the file on Tuesday 1 There is one situation when a firm does not receive a submitted record on the transaction output file. CBRS drops a transaction on the rare occasion when a submitter enters their firm number incorrectly, and CBRS does not recognize the submitter. In this case, CBRS rejects the record because the submitter is invalid. However, CBRS cannot return the record to the submitter because the incorrect submitter number does not match the submitter s actual number, so CBRS does not know where to return the record. User Testing 147

148 through Friday, a DTC participant must enter a deposit through the testing environment. A transfer agent should arrange to have a DTC participant testing partner enter deposits into the testing environment for a CUSIP or CUSIPs specific to that agent. The following table illustrates the timing of the contents of the Daily Deposit file for test ing: For Production Data Monday Tuesday Wednesday Thursday Friday Week 1 DTC Participants enter deposits into Production DTC Participants enter deposits into Production DTC Participants enter deposits into Production DTC Participants enter deposits into Production DTC Participants enter deposits into Production Week 2 Deposits from the previous Friday (not the other four days in Week 1) are in the file No production data in file No production data in file No production data in file No production data in file For Test Data Monday Tuesday Wednesday Thursday Friday Week 1 DTC Participants enter transactions into Test DTC Participants enter transactions into Test DTC Participants enter transactions into Test DTC Participants enter transactions into Test DTC Participants enter transactions into Test Week 2 No test data in file File contains test data from all five days in Week 1 File contains test data from all five days in Week 1 File contains test data from all five days in Week 1 File contains test data from all five days in Week 1 Canned Transaction Output File Four versions of a canned transaction output file are available in the testing environment. A canned file contains static data that firms can use for testing. The canned output file serves as a sample of what CBRS transaction output looks like. The four versions correspond to the kind of firm receiving the file: there is one file for a broker-dealer, one for a transfer agent, one for a bank, and one for a mutual fund company. The contents of the different versions, such as the Transaction Types, vary based on the kind of receiver. When requesting the canned file, please indicate the number that corresponds to your user type: for a bank for a broker-dealer for a mutual fund for a transfer agent User Testing 148

149 10. APPENDIX A: LIST AND DESCRIPTION OF FILE IDENTIFICATION NUMBERS CBRS Input SYS ID Numbers The input SYS ID numbers for CBRS are # for Production, and # for the Participant Services Environment (PSE) for testing. List of CBRS Output File Identification Numbers The table below contains a list of the various CBRS and CBRS-related files, and their file identification numbers, a/k/a product numbers. File Test Number Production Number Transaction Machine Readable Output (MRO) Transaction Request Download Transaction End of Day (EOD) Download Cost Basis User Master File Machine Readable Output (MRO) Cost Basis User Master File WebDirect Download Daily Deposit File for Transfer Agents WebDirect Download Daily Reorg Deposit File for Transfer Agents WebDirect Download N/A The canned file for testing has different numbers depending on what type of user is receiving the file. When requesting the canned file, please indicate the number that corresponds to your user type: for a bank for a broker-dealer for a mutual fund for a transfer agent Description of the CBRS Output Files Transaction Machine Readable Output (MRO). For computer to computer connection users. This file contains all CBRS transaction output for the firm for the current processing date. (While this file is intended for computer to computer connection users, it is also available for DTCC web portal users to download using the CBRS Output Files function.) Appendix A: List and Description of File Identification Numbers 149

150 Transaction Request DTCC web portal Download. For DTCC web portal users. Firms can use the transaction inquiry function to search and view specific transactions using various criteria, such as ISIN, Transfer Control Number, or Transaction Type. They can then download these requested transactions to Excel. This file contains these specifically requested transactions in Excel format. Transaction End of Day (EOD) Download. For DTCC web portal users. This file contains all transactions for the current processing day in Excel format. It contains the same information provided in Transaction Machine Readable Output (MRO) for that day. Cost Basis User Master File Machine Readable Output (MRO). For computer to computer connection users. This file provides a listing of the firms that are active users of CBRS in MRO format. (While this file is intended for computer to computer connection users, it is also available for DTCC web portal users to download using the CBRS Output Files function.) Cost Basis User Master File DTCC web portal Download. For DTCC web portal users. This file provides a listing of the firms that are active users of CBRS in tilde-delimited format for converting to Excel. Daily Deposit File for Equity Transfer Agents. For Equity Transfer Agents only. This file contains the deposits for that Transfer Agent for that day, so they know for which deposits they can expect to send cost basis. The file is available through DTCC web portal, or on the mainframe for retrieval via Data Transmission Facility (DTF) function DPCBRS. Daily Reorg Deposit File for Equity Transfer Agents. For Equity Transfer Agents only. This file contains the reorg deposits for that Transfer Agent for that day, so they know for which reorg deposits they can expect to send cost basis. The file is available through DTCC web portal, or on the mainframe for retrieval via Data Transmission Facility (DTF) function DRCBRS. Appendix A: List and Description of File Identification Numbers 150

151 11. APPENDIX B: LIST OF VALID CHARACTERS FOR CBRS 'A', 'B', 'C', 'D', 'E', 'F', 'G', 'H', 'I', 'J', 'K', 'L', 'M', 'N', 'O', 'P', 'Q', 'R', 'S', 'T', 'U', 'V', 'W', 'X', 'Y', 'Z', 'a', 'b', 'c', 'd', 'e', 'f', 'g', 'h', 'i', 'j', 'k', 'l', 'm', 'n', 'o', 'p', 'q', 'r', 's', 't', 'u', 'v', 'w', 'x', 'y', 'z', '1', '2', '3', '4', '5', '6', '7', '8', '9', '0', '!', '#', '$', '%', '&', '*', '(', ')', '-', '_', '+', '=', '~', '{', '}', ' ', '\', ':', ';', '"', '<', '>', ',', '.', '?', '/', ' ', "'", '`'. Appendix B: List of Valid Characters for CBRS 151

152 12. DISCLAIMER AND COPYRIGHT NOTICE Copyright 2018 by The Depository Trust & Clearing Corporation ( DTCC ). All rights reserved. The primary purpose of this User Guide is to familiarize members with the Cost Basis Reporting Service product offered by DTCC. This guide is not intended to serve as a legal document. No statement in this guide should be construed as a legally binding rule or regulation, or as creating an obligation on the part of DTCC or any person. In additio n, any time schedules or time requirements set forth herein are subject to change without notice. This service is governed by applicable Rules, Procedures, and Service Guides for the Cost Basis Reporting Service, which contains the full terms, conditions, and limitations applicable to this service. This work (including, without limitation, all text, images, logos, compilation and design) is proprietary and protected by copyright, and is for the exclusive use of users authorized by DTCC. If his work is received from DTCC in any electronic medium, authorized users of this work are granted a limited, non-exclusive, non-transferable, non-sublicensable and freely revocable license to make reproductions and transmissions necessary for downloading and storage of this work on the users' computers and to print one or more paper copies from the electronic version for their own use. Other than to this limited extent, no part of this work (including any paper copies thereof or print versions thereof) may be printed, copied, altered, modified, posted, reproduced, displayed, published, sold, licensed, used or distributed (including by transmission) in any form or by any means, or stored in any information storage and retrieval system, without DTCC's prior written permission. All product or service names are the property of their respective owners. Doc Info: January 24, 2018 Publication Code: CBRS## Service: Cost Basis Reporting Service (CBRS) Title: CBRS User Guide Disclaimer and Copyright Notice 152

153 FOR MORE INFORMATION DTCC Learning at: or visit us on the web at: