GlossaryGuide

Cash balances: 1) held by U.S. residents in brokerage and margin accounts with foreign residents; and 2) held by foreign residents in brokerage and margin accounts at U.S.-resident entities. Brokerage balances should be reported gross and include funds that may be freely withdrawn or held to support positions in futures, securities or other financial instruments.

The following are examples that generate cash balances in brokerage balances:

1. Cash proceeds from selling securities short.
2. Cash margin or collateral placed to support open positions in futures (initial, maintenance and margin) or options on exchanges, over-the-counter derivatives, and excess cash margin or collateral retained from previous settlements of positions.
3. Cash margin lent to foreign residents for their purchases of securities.
4. Cash interest and dividends on securities that have been pledged as collateral with foreign residents. Brokerage balances held at foreign entities should be reported on the BC (if they are the reporter’s own dollar claims), on the BQ-1 (if they are U.S. dollar-denominated customer claims of a reporter), or on the BQ-2 (if they are foreign currency- denominated claims). Liabilities to foreign residents from brokerage balances should be reported on the BL-1 (if they are the reporter’s own dollar liabilities) and on the BQ-2 (if they are foreign currency denominated liabilities).