Are there cross-border transactions and holdings that the TIC system does not capture?
Yes. The TIC reporting system captures cross-border activity from a defined panel of custodians, banks and other depository institutions, securities brokers and dealers, end-investors, security issuers, and nonfinancial institutions. In all cases, there are minimum levels of cross-border activity that must be reached before reporting is required. For example, monthly TIC Form S reporters must have cross-border transactions of at least $50 million. Transactions by or holdings of individuals or institutions that fall below the mandatory reporting levels will not be captured. Additionally, some cross-border activity may meet reporting requirements but be missed in the TIC data, either because the institutions involved have not yet been identified and included in the reporting panel or because of improper reporting by identified panel members. For cross-border securities activity, the complimentary system of monthly transactions reports and periodic surveys can help identify potential gaps
