Guidance

The TRACE Quality of Markets Report Card for Treasuries is a monthly status report for treasuries transactions that a firm reported to the Trade Reporting and Compliance Engine (TRACE). Firms are required to report trades in accordance with established FINRA rules and regulations. Firms should make no inference that the staff of FINRA has or has not determined that the information contained on the TRACE Quality of Markets Report Card does or does not constitute rule violations.

Overview

The following tool identifies key cybersecurity risks currently facing small firms and helps them enhance their customer information protection, and cybersecurity written supervisory programs (WSPs) and related controls, including:

1. How do I submit form filings to CRD?

Background

FINRA examines broker-dealers on a regular cycle basis, with firms posing greater risk receiving an examination more frequently. In connection with each of these examinations, FINRA prepares a report—which is available only to the relevant firm—addressing certain aspects of the firm's compliance with securities rules and regulations.

The Cross-Market Equities Supervision: Auto Execution Manipulation report is a tool designed to provide firms feedback on exceptions that were generated based on the firm’s order entry and trading activity in a given surveillance period. The report covers auto execution manipulation.  This report is produced on a monthly basis.

Summary Report

The table below provides a reference description for all of the elements found for Auto Execution Manipulation exceptions identified during the month.  

1. Where can I access a list describing the exams listed in CRD?

A listing of the exams available in CRD can be found on the Qualification Exams page.

2. How long is an exam window in CRD?

Exam windows are valid for 120 days. Provided that an exam candidate is not subject to a waiting period after a previous failed attempt, the exam window start date will be the day following the submission of the exam enrollment request.

Background

Since we introduced our FINRA360 initiative, FINRA has taken a series of actions to enhance support for small firms, including providing small firms with tools and resources to help them comply with regulations.

A consistent comment that FINRA has heard is a desire on the part of small firms for a tool to allow them to get answers to general questions that did not rise to a level that required involvement by their Regulatory Coordinator.

Questions and Answers on FINRA’s Eligibility Proceedings for Firms Participating in the Securities and Exchange Commission’s (“SEC” or “Commission”) Share Class Selection Disclosure Initiative (“SCSD Initiative”).

The Web CRD Form BD Timeliness Report Card is a monthly analysis of FINRA firms' ability to meet certain filing obligations. In accordance with FINRA rules, firms are required to submit information related to applicant member and/or affiliate(s). This report displays a firm's performance in submitting certain BD amendment filings in the required time frame.

Background

FINRA has been actively monitoring financial technology-related (FinTech) developments in the securities industry. A growing number of FinTech firms have been embracing new technologies, pioneering innovative products and developing new client-oriented financial services business models. Many traditional financial service providers are also rethinking their business models, incorporating these technologies and services. As part of the FINRA360 process, FINRA determined that it needed to enhance resources dedicated to this rapidly developing area of the industry.

1. When are books, records and accounts under the “control” of a member firm, associated person or person subject to FINRA’s jurisdiction?

For purposes of Rule 8210, whether a particular document is within a member firm’s or person’s “control” is determined by the facts and circumstances of each situation. Generally, a document will be considered to be in the control of a member firm or person if the firm or person has the legal right, authority or ability to obtain the document upon demand.¹

The Executing Firm 10 Second Compliance Report Card is a monthly status report for trades that another firm reported on behalf of the market participant. The report contains counts of properly modified late trades, late trades that were not modified, and improperly modified trades.  

FINRA Rule 3170 (Tape Recording of Registered Persons by Certain Firms)—commonly referred to as the “Taping Rule”— requires certain firms to install taping systems to record all telephone conversations between their registered persons and existing and potential customers, review those recordings and file reports with FINRA.

Overview – FINRA’s Funding Portal Rules (FP Rules) apply to firms that register with the U.S. Securities and Exchange Commission (SEC) as funding portals pursuant to the SEC’s Regulation Crowdfunding (Reg CF) and that become FINRA FP members.