Interpretations to the SEC's Financial and Operational Rules

To assist firms in complying with SEC Rules regarding financial and operational matters, FINRA has published and will periodically update certain interpretations provided by the staff of the SEC's Division of Trading and Markets.

  • Regulatory Notice 23-21
    FINRA Reminds Member Firms of Net Capital, Recordkeeping and Financial Reporting Requirements in Connection with Revenue Recognition Practices
    12/22/2023
  • Information Notice 11/1/23
    2024 and First Quarter of 2025 Report Filing Due Dates
    11/01/2023
  • Regulatory Notice 23-15
    Regulation T and SEA Rule 15c3-3 Extension of Time Requests Under a T+1 Settlement Cycle
    09/05/2023
  • Regulatory Notice 23-11
    FINRA Seeks Comment on Concept Proposal for a Liquidity Risk Management Rule
    06/12/2023
  • Regulatory Notice 23-04
    FINRA Issues Guidance in Connection With Failures of Silicon Valley Bank and Signature Bank
    03/14/2023
  • Information Notice - 11/11/22
    2023 and First Quarter of 2024 Report Filing Due Dates
    11/11/2022
  • Regulatory Notice 22-03
    FINRA Adopts Amendments to Clarify the Application of FINRA Rules to Security-Based Swaps
    01/20/2022
  • Regulatory Notice 21-45
    FINRA Announces Update of the Interpretations of Financial and Operational Rules
    12/28/2021
  • Regulatory Notice 21-31
    FINRA Establishes New Supplemental Liquidity Schedule (SLS)
    09/03/2021
  • Regulatory Notice 21-29
    FINRA Reminds Firms of their Supervisory Obligations Related to Outsourcing to Third-Party Vendors
    08/13/2021
  • Regulatory Notice 21-27
    FINRA Announces Update of the Interpretations of Financial and Operational Rules
    07/22/2021
  • Regulatory Notice 21-25
    FINRA Continues to Encourage Firms to Notify FINRA if They Engage in Activities Related to Digital Assets
    07/08/2021
  • Regulatory Notice 21-24
    FINRA Announces Updates to the Interpretations of FINRA’s Margin Rule Regarding Minimum Equity
    07/06/2021
  • Regulatory Notice 21-19
    FINRA Requests Comment on Short Interest Position Reporting Enhancements and Other Changes Related to Short Sale Reporting
    06/04/2021
  • Regulatory Notice 21-13
    FINRA Announces Updates to the Interpretations of FINRA’s Margin Rule for Day Trading
    03/24/2021
  • Regulatory Notice 21-12
    FINRA Reminds Member Firms of Their Obligations Regarding Customer Order Handling, Margin Requirements and Effective Liquidity Management Practices During Extreme Market Conditions
    03/18/2021
  • Regulatory Notice 21-11
    FINRA Requests Comment on Proposed Amendments to the Margin Rule Regarding When Issued and Other Extended Settlement Transactions
    03/14/2021
  • Regulatory Notice 21-05
    SEC Grants FINRA Request for 30-Day Filing Extension for Smaller Broker-Dealers
    02/18/2021
  • Regulatory Notice 20-36
    FINRA Requests Comment on a Concept Proposal Regarding the Application of FINRA Rules to Security-Based Swaps
    10/15/2020
  • Regulatory Notice 20-23
    FINRA Encourages Firms to Notify FINRA if They Engage in Activities Related to Digital Assets
    07/09/2020
  • Regulatory Notice 20-22
    FINRA Announces Updates to the Interpretations of FINRA’s Margin Rule Regarding Control and Restricted Securities and Consolidation of Accounts
    07/02/2020
  • Regulatory Notice 20-08
    Pandemic-Related Business Continuity Planning, Guidance and Regulatory Relief
    03/09/2020
  • Regulatory Notice 20-06
    FINRA Announces Update of the Interpretations of Financial and Operational Rules
    02/25/2020
  • Regulatory Notice 19-24
    FINRA Encourages Firms to Notify FINRA if They Engage in Activities Related to Digital Assets
    07/18/2019
  • Regulatory Notice 19-11
    FINRA Announces Update of the Interpretations of Financial and Operational Rules
    04/09/2019
  • Regulatory Notice 19-08
    Guidance on FOCUS Reporting for Operating Leases
    03/19/2019
  • Regulatory Notice 19-05
    FINRA Extends Effective Date of Margin Requirements for Covered Agency Transactions
    02/12/2019
  • Regulatory Notice 19-02
    FINRA Updates Supplemental Statement of Income
    01/08/2019
  • Regulatory Notice 18-42
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    12/18/2018
  • Regulatory Notice 18-39
    Unexpected Close of Securities Markets
    12/03/2018
  • Regulatory Notice 18-38
    Amendments to the SEC's Financial Reporting Requirements—eFOCUS System Updates and Annual Audit Requirements
    11/05/2018
  • Regulatory Notice 18-31
    SEC Staff Issues Guidance on Third-Party Recordkeeping Services
    09/14/2018
  • Regulatory Notice 18-30
    Enhancements to the REX System and Updates to Data and Other Requirements Applicable to Requests for Extensions of Time Under Regulation T and SEA Rule 15c3-3
    09/13/2018
  • Regulatory Notice 18-20
    FINRA Encourages Firms to Notify FINRA if They Engage in Activities Related to Digital Assets
    07/06/2018
  • Regulatory Notice 18-18
    FINRA Extends Effective Date of Margin Requirements for Covered Agency Transactions
    05/03/2018
  • Regulatory Notice 18-10
    FINRA Requests Comment on the Effectiveness and Efficiency of Its Carrying Agreements Rule
    03/23/2018
  • Regulatory Notice 18-07
    Extension of Time Requests Relating to FINRA Rule 4210
    02/14/2018
  • Regulatory Notice 18-03
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    01/10/2018
  • Regulatory Notice 18-02
    FINRA Requests Comment on Proposed Amendments to FINRA Rule 4521 and New Supplemental Liquidity Schedule
    01/08/2018
  • Regulatory Notice 17-28
    FINRA Makes Available Frequently Asked Questions and Guidance and Extends Effective Date of Margin Requirements for Covered Agency Transactions: New Effective Date: June 25, 2018
    09/29/2017
  • Regulatory Notice 17-27
    Guidance to Members Affected by Hurricane Harvey
    08/30/2017
  • Regulatory Notice 17-19
    SEC Approves Amendments to FINRA Rules to Conform to the Shortened Standard Settlement Cycle for Most Broker-Dealer Transactions From Three Business Days (T+3) to Two Business Days After the Trade Date (T+2)
    05/11/2017
  • Regulatory Notice 17-12
    Regulation T and SEA Rule 15c3-3 Extension of Time Requests Under a T+2 Settlement Cycle
    04/07/2017
  • Regulatory Notice 17-07
    Updated SEC No-Action Guidance and Instructions on Electronic Filing of Broker-Dealer Annual Reports
    02/10/2017
  • Regulatory Notice 16-31
    (Margin Requirements) to Establish Margin Requirements for Covered Agency Transactions
    08/12/2016
  • Regulatory Notice 16-13
    Revised SEC No-Action Guidance Expanding the Definition of "Ready Market" for Certain Foreign Equity Securities
    04/20/2016
  • Regulatory Notice 16-11
    Application of Supplemental Schedule for Derivatives and Other Off-Balance Sheet Items
    04/05/2016
  • Regulatory Notice 16-09
    FINRA Requests Comment on Proposed Amendments to FINRA Rules to Support the Industry Initiative to Shorten the Settlement Cycle for Securities in the U.S. Secondary Market From T+3 to T+2
    03/04/2016
  • Regulatory Notice 16-05
    SEC No-Action Guidance on Electronic Filing of Broker-Dealer Annual Reports
    01/26/2016
  • Regulatory Notice 15-33
    Guidance on Liquidity Risk Management Practices
    09/15/2015
  • Regulatory Notice 15-27
    Guidance Relating to Firm Short Positions and Fails-to-Receive in Municipal Securities
    07/30/2015
  • Regulatory Notice 15-25
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    06/29/2015
  • Regulatory Notice 15-23
    FINRA Provides Limited Relief Regarding Requirement to Promptly Transmit Funds in Connection With Sales of Securities on a Subscription-Way Basis for the Purpose of Completing Suitability Reviews Under Identified Conditions
    06/19/2015
  • Regulatory Notice 14-43
    SEC Approves Supplemental Inventory Schedule
    10/23/2014
  • Regulatory Notice 14-39
    New Template Available on FINRA Firm Gateway for Compliance With SEA Rule 17a-5(f)(2) (Statement Regarding Independent Public Accountant)
    10/08/2014
  • Regulatory Notice 14-38
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    10/06/2014
  • Regulatory Notice 14-25
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    06/23/2014
  • Regulatory Notice 14-13
    Extension of Time Requests Relating to New SEA Rule 15c3-3(d)(4)
    03/25/2014
  • Regulatory Notice 14-12
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    03/24/2014
  • Regulatory Notice 14-06
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    02/07/2014
  • Regulatory Notice 14-05
    SEC Approves Consolidated FINRA Rules 4314 (Securities Loans and Borrowings), 4330 (Customer Protection — Permissible Use of Customers' Securities) and 4340 (Callable Securities)
    02/03/2014
  • Regulatory Notice 14-02
    FINRA Requests Comment on Proposed Amendments to FINRA Rule 4210 for Transactions in the TBA Market
    01/27/2014
  • Regulatory Notice 13-44
    FINRA Announces Updates of the Interpretations of Financial and Operational Rules
    12/23/2013
  • Regulatory Notice 13-41
    eFOCUS System Updates Applicable to Joint Broker-Dealers/Futures Commission Merchants
    12/19/2013
  • Regulatory Notice - 13-10
    SEC Approves Supplemental Schedule for Derivatives and Other Off-Balance Sheet Items*
    03/04/2013
  • Regulatory Notice 13-05
    FINRA Requests Comment on a Proposed Supplemental Schedule for Inventory Positions
    01/24/2013
  • Regulatory Notice 12-58
    SEC No-Action Guidance Expanding the Definition of "Ready Market" for Certain Foreign Equity Securities
    12/27/2012
  • Regulatory Notice 12-54
    Reporting Relief Relating to Customer and PAIB Reserve Formula Computations and Required Deposits Around the December 2012 Month-End Holidays
    12/07/2012
  • Regulatory Notice 12-23
    FINRA Requests Comment on Proposed Supplementary Schedule for Derivatives and Other Off-Balance Sheet Items
    05/04/2012
  • Regulatory Notice 12-11
    SEC Approves New FINRA Rule 4524 Requiring the Filing of Supplemental FOCUS Information and a Supplementary Schedule to the Statement of Income (Loss) Page of the FOCUS Report
    02/28/2012
  • Regulatory Notice 11-48
    FINRA Requests Comment on a Proposed New Rule Requiring Carrying/Clearing Member Firms to Maintain and Keep Current Certain Records in a Central Location
    10/21/2011
  • Regulatory Notice 11-46
    FINRA to Require Electronic Submission of Annual Audit Reports
    10/03/2011
  • Regulatory Notice 11-38
    Application of the SEC's Financial Responsibility Rules in Response to the Downgrade of U. S. Long Term Credit Rating by Standard & Poor's
    08/08/2011
  • Regulatory Notice 11-33
    SEC Approves Operations Professional Registration Category and Consolidated FINRA Continuing Education Rule
    07/22/2011
  • Regulatory Notice 11-26
    SEC Approves Consolidated Financial Responsibility and Related Operational Rules
    05/27/2011
  • Regulatory Notice 11-21
    SEC Approves Consolidated FINRA Rule Governing Fidelity Bonds
    05/05/2011
  • Regulatory Notice 11-14
    FINRA Requests Comment on Proposed New FINRA Rule 3190 to Clarify the Scope of a Firm's Obligations and Supervisory Responsibilities for Functions or Activities Outsourced to a Third-Party Service Provider
    03/29/2011
  • Regulatory Notice 10-61
    SEC Approves New FINRA Rule 4160 Relating to the Verification of Assets at a Non-Member Financial Institution
    12/03/2010
  • Regulatory Notice 10-57
    Funding and Liquidity Risk Management Practices
    11/01/2010
  • Regulatory Notice 10-46
    Supplemental FOCUS Filing Requirement Applicable to Certain Joint Broker-Dealers/Futures Commission Merchants
    10/04/2010
  • Regulatory Notice 10-44
    New Alert-Reporting Criterion for Leverage in FOCUS Reports
    09/22/2010
  • Regulatory Notice 10-33
    FINRA Requests Comment on Proposed Rule Requiring the Filing of Supplemental FOCUS Information and Proposed Supplementary Schedule to the Statement of Income (Loss) Page of FOCUS Report Parts II and IIA
    07/19/2010
  • Regulatory Notice 10-21
    SEC Approval and Effective Date for New Consolidated FINRA Rules and the Repeal of Certain NASD and Incorporated NYSE Rules
    04/15/2010
  • Regulatory Notice 10-19
    FINRA Reminds Firms of Responsibilities When Providing Customers with Consolidated Financial Account Reports
    04/08/2010
  • Regulatory Notice 10-18
    FINRA Issues Guidance on Master and Sub-Account Arrangements
    04/06/2010
  • Regulatory Notice 10-15
    FINRA Requirements for Subordinations
    03/30/2010
  • Regulatory Notice 10-12
    Guidance on FAS 167 for FOCUS Reporting
    02/19/2010
  • Regulatory Notice 10-03
    FINRA Requests Comments on Proposed Consolidated FINRA Rules Governing Securities Loans and Borrowings, Permissible Use of Customers' Securities and Callable Securities
    01/05/2010
  • Regulatory Notice 09-71
    SEC Approves Consolidated FINRA Rules Governing Financial Responsibility
    12/07/2009
  • Regulatory Notice 09-44
    FINRA Requests Comment on Proposed Consolidated FINRA Rule Governing Fidelity Bonds
    07/31/2009
  • Regulatory Notice 09-38
    Guidance on the Net Capital and Reserve Formula Treatment of Senior Unsecured Debt Securities Issued Under the Debt Guarantee Program Component of the FDIC's Temporary Liquidity Guarantee Program
    07/15/2009
  • Regulatory Notice 09-03
    FINRA Requests Comment on Proposed Consolidated FINRA Rules Governing Financial Responsibility and Operational Requirements
    01/06/2009
  • Regulatory Notice 08-65
    FINRA Grants Additional,Temporary Relief from the Net Capital, Reserve Formula, Non-purpose Loan, & Maintenance Margin Requirements Applicable to Credit Extended on Auction Rate Securities to Broker-Dealers That Agree to Buy Back Auction Rate Securities
    11/04/2008
  • Regulatory Notice 08-66
    FINRA Addresses Firms’ Retail Foreign Currency Exchange Activities
    11/04/2008
  • Regulatory Notice 08-60
    FINRA Announces Temporary Margin Maintenance, Net Capital and Reserve Formula Requirements Related to Money Market Mutual Funds Effective Date: October 21, 2008
    10/21/2008
  • Regulatory Notice 08-56
    FINRA Announces the Publication of Consolidated Interpretations of SEC Rules Governing Financial Responsibility, Customer Protection and Books and Records
    10/15/2008
  • Regulatory Notice 08-46
    Interpretive Guidance on Capital Treatment of Introducing Broker-Dealers' Clearing Deposits
    09/05/2008
  • Regulatory Notice 08-38
    FINRA Provides Clarification on SEC Guidance Regarding Emergency Orders Concerning Short Selling
    07/23/2008
  • Regulatory Notice 08-23
    Proposed Consolidated FINRA Rules Governing Financial Responsibility
    05/14/2008
  • Regulatory Notice 08-08
    FINRA Temporarily Increases Margin Maintenance Requirements on Auction Rate Securities Backed by Fixed Income Products
    03/05/2008
  • Regulatory Notice 07-60
    FINRA Announces Relief Relating to Customer and PAIB Reserve Formula Computations and Required Deposits around the December 2007 Month-End Holidays
    12/11/2007
  • Regulatory Notice 07-58
    FINRA Solicits Comments on Proposed Guidance Regarding International Prime Brokerage Practices
    11/26/2007

November 9, 2011

SEA Rule 15c3-1 Net Capital Treatment of Proprietary Assets Held with MF Global Inc.

On October 31, 2011, MF Global Inc. (MFGI) became subject to a liquidation proceeding under the Securities Investor Protection Act of 1970. As a result of the liquidation proceeding and reports of missing customer assets at MFGI, cash and securities assets held by MFGI on behalf of member firms may not be available for withdrawal for an extended period of time, rendering the assets illiquid and unavailable for normal broker-dealer business operations.

FINRA staff has discussed the net capital treatment of the assets with the staff of the SEC's Division of Trading and Markets and has been advised that effective immediately, member firms that have proprietary cash and/or securities held with MFGI pursuant to a proprietary account of an introducing broker-dealer (PAIB) agreement are required to apply a charge to their tentative net capital equal to 50 percent of the cash and securities. Dually registered broker-dealer/Futures Commission Merchant (FCM) members (BD/FCMs) must follow the regulatory guidance issued by the Joint Audit Committee via Regulatory Update #11-02 issued on November 4, 2011, for FCMs. As such, effective immediately, BD/FCMs must reflect customer segregated, secured 30.7 and commodities related proprietary trading balances held at MFGI at 60 percent of account balances (net liquidating value plus securities on deposit) for net capital purposes.

In addition, effective immediately, any other receivables from MFGI that are not included in the PAIB computation but that would ordinarily be an allowable asset for 30 days (e.g., commissions receivable) and any receivable from an affiliate of MFGI must be treated as a non-allowable asset.

Please note that the net capital treatment of proprietary assets held by MFGI, as discussed above, is subject to further change. Any questions regarding the foregoing should be directed to your firm's Regulatory Coordinator.

September 18, 2008

Additional, Temporary Relief from the Net Capital, Reserve Formula, Non-purpose Loan, and Maintenance Margin Requirements Applicable to Credit Extended on Auction Rate Securities to Broker-Dealers That Agree to Buy Back Auction Rate Securities

FINRA granted additional, temporary relief from the net capital, reserve formula, non-purpose loan, and maintenance margin requirements applicable to credit extended on auction rate securities to broker-dealers who have agreed to implement buyback programs for auction rate securities. See interpretive letter and Regulatory Notice 08-65.

April 11, 2008

Temporary Relief from the Requirements of FINRA and SEC Rules Regarding the Net Capital Charges Applicable to Credit Extended on Non-Marginable ARPS

FINRA released an interpretive letter on temporary relief from the requirements of FINRA and SEC Rules regarding the net capital charges applicable to credit extended on non-marginable Auction Rate Preferred Securities. The letter is in response to recent developments in the market for such securities.

April 24, 2008

Temporary Relief from the Requirements of FINRA and SEC Rules Regarding the Net Capital Charges Applicable to Credit Extended on Non-Marginable ARPS

Update to the April 11, 2008, Interpretive Letter: Auction Rate Preferred Securities

Update to the temporary relief from the requirements of FINRA and SEC Rules regarding the net capital charges applicable to credit extended on non-marginable ARPS. This update modifies the requirement to obtain secured bank loans for credit extended to customers collateralized by ARPS.