1. (a) Income from trading activities and investment activities shall be allocated to New York State if the greater portion of income-producing activity relating to such trading and investment activities occurred within New York State. When determining the income from trading and investment activities, the taxpayer must net the gains with the losses from such activities that are included in the computation of Federal taxable income. A net loss is deemed to be zero.
2. (b) Trading activities include, but are not limited to, foreign exchange transactions, the purchase and sale of options and financial futures and, in appropriate cases, interbank fund transfers.

3. (c) Except as provided in subdivision (d) of this section, to determine where the greater portion of income-producing activity relating to trading activities or investment activities occurred, consideration is given to such factors as:

   1. (1) where the particular policies of the taxpayer regarding the trading or investment activities are established and guidelines set up;
   2. (2) where the day-to-day decisions regarding each transaction relating to the trading or investment activities are made; and

   3. (3) where the equipment and other support activities relating to such trading or investment activities are located.

      The significance to be accorded to each factor depends upon the facts in each case. Consideration shall also be given to where the general policies of the taxpayer regarding the trading or investment activities are established and guidelines set up. However, this shall not be accorded as much significance as any of the factors enumerated in paragraph (1), (2) or (3) of this subdivision.

4. (d) Securities owned by a bank but held by a public official or pledged to secure public funds or trust funds deposited in such bank shall be allocated to New York State if such secured deposit is maintained in New York State. (See section 19-7.3 of this Part for definition of maintained.)

Tax Law, § 1454