Extension Reason Codes
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Summary
Regulation T - (Purchases)
| Reason | Reason Code | Reason | Reason Code | Reason | Reason Code |
|---|---|---|---|---|---|
| Contacting Customer | 001 | Check in the Mail | 002 | Authorization to Transfer Funds | 003 |
| Awaiting Collateral | 004 | Pending Receipt of Securities Sold to Offset Purchase | 005 | Legal Documents | 006 |
| Unacceptable Check | 007 | Foreign Security Sold Under Foreign Settlement | 008 | Customer is Ill | 009 |
| COD-DK Foreign Customer | 012 | COD-DK Domestic Customer | 014 | COD-Fail 35 days (applies to domestic & foreign) | 015 |
| Natural Disaster | 016 | Customer Account in Transfer | 017 | Death in Family | 018 |
| Awaiting Appointment of Executor | 019 | Exceptional Circumstance | 021 |
SEA Rule 15c3-3 (Sales and Security Deficits)
FINRA Rule 4210 Extension of Time
| Reason | Reason Code | Reason | Reason Code | Reason | Reason Code |
|---|---|---|---|---|---|
| Mark to Market – Covered Agency Transaction | 060 | Collateral Valuation – Covered Agency Transaction | 061 | Non-US Holiday – Covered Agency Transaction | 062 |
| Natural Disaster – Covered Agency Transaction | 063 | Other – Covered Agency Transaction | 067 | Strategy-based Deficiency | 068 |
| Portfolio Margin Deficiency | 069 |
Details
Regulation T - (Purchases)
| Reason | Contacting Customer |
| Reason Code | 001 |
| Reason Description | Contacting Customer to determine why payment was not yet received. Specific effort must be made to reach the customer to use this reason code. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | No |
| Limit Per Code | 1 |
| Code Limits Description | Final on Reason Extension of Time Request |
| Reason | Check in the Mail |
| Reason Code | 002 |
| Reason Description | Customer was contacted and advised the member firm the check is in the mail. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | Authorization to Transfer Funds |
| Reason Code | 003 |
| Reason Description | Customer was contacted and advised the member firm that an authorization to transfer funds from another account is in the mail. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | Awaiting Collateral |
| Reason Code | 004 |
| Reason Description | Customer was contacted and advised additional collateral is in the mail. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | Pending Receipt of Securities Sold to Offset Purchase |
| Reason Code | 005 |
| Reason Description | Awaiting receipt of securities sold in another account to release funds sufficient to offset purchase requirement in this account. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | Legal Documents |
| Reason Code | 006 |
| Reason Description | Awaiting legal documents or clearance of securities sold from legal transfer. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Unacceptable Check |
| Reason Code | 007 |
| Reason Description | Unacceptable or improperly drawn check received from customer and returned for correction or new check. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | Foreign Security Sold Under Foreign Settlement |
| Reason Code | 008 |
| Reason Description | Foreign Security sold in a foreign securities market based on foreign settlement procedures. Available only for foreign securities transactions in a foreign securities market with a settlement date of three business days through and including the 34th calendar day after trade date. |
| When to submit first extension | For Reg T extension requests under code 008: 1. If the settlement date is less than or equal to T+2 business days, the request shall be made on T+3 business day, or; 2. If the settlement date is greater than or equal to T+3 business days, the request shall be made on the earlier of one business day after the date on which settlement is required to occur by the rules of the foreign securities market or T+35 calendar days. |
| Maximum Days Allowed | 7 Bus. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | Customer is Ill |
| Reason Code | 009 |
| Reason Description | Customer has been unexpectedly hospitalized or taken seriously ill and is incapable of issuing check. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | COD-DK Foreign Customer |
| Reason Code | 012 |
| Reason Description | Delivery DK'd by bank for no instructions. Customer's address outside the U.S or Canada. To be used when DK occurs prior to the 35th calendar day from trade date. Note, when a DK'd transaction occurs on the 35th calendar day from trade date, use code 015. Only one extension is permitted on this DK'd transaction. |
| When to submit first extension | • For Reg T extension requests other than New Issue Securities under codes 012, 014, or 015, the request shall be made no later than T+35 calendar days. • For Reg T extension requests on New Issue Securities under codes 012, 014, or 015, the request shall be made promptly after the securities have been made available and no later than T+35 calendar days. |
| Maximum Days Allowed | 7 Cal. |
| Count Toward 5 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | COD-DK Domestic Customer |
| Reason Code | 014 |
| Reason Description | Delivery DK'd by bank for no instructions. Customer address in U.S. or Canada. To be used when DK occurs prior to the 35th calendar day from trade date. Note, when a DK'd transaction occurs on the 35th calendar day from trade date, use code 015. Only one extension is permitted on this DK'd transaction. |
| When to submit first extension | • For Reg T extension requests other than New Issue Securities under codes 012, 014, or 015, the request shall be made no later than T+35 calendar days. • For Reg T extension requests on New Issue Securities under codes 012, 014, or 015, the request shall be made promptly after the securities have been made available and no later than T+35 calendar days. |
| Maximum Days Allowed | 2 Bus. |
| Count Toward 5 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2* |
| Code Limits Description | Final on Second Extension of Time Request* See note on T+1 below. |
| Reason | COD-Fail 35 days (applies to domestic & foreign) |
| Reason Code | 015 |
| Reason Description | Broker unable to make delivery. Securities in transfer or fail to receive, 35 day item. To be used only when applying firm is unable to make delivery against payment due to fail or similar situation and the transaction(s) involved has reached the 35th calendar day after trade date. Also, to be used when a DK'd transaction occurs on the 35th calendar day from trade date or prior to the expiration of any subsequent extension. Only one extension is permitted on this DK'd transaction. |
| When to submit first extension | • For Reg T extension requests other than New Issue Securities under codes 012, 014, or 015, the request shall be made no later than T+35 calendar days. • For Reg T extension requests on New Issue Securities under codes 012, 014, or 015, the request shall be made promptly after the securities have been made available and no later than T+35 calendar days. |
| Maximum Days Allowed | 14 Cal. |
| Count Toward 5 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Natural Disaster |
| Reason Code | 016 |
| Reason Description | Natural Disasters, Acts of God or other abnormal conditions. (Reason may only be used when FINRA staff authorizes it and then solely for the time period and condition specified by staff.) |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 14 Cal. |
| Count Toward 5 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firm needs FINRA approval prior to submitting such request |
| Reason | Customer Account in Transfer |
| Reason Code | 017 |
| Reason Description | Customer account coming from another broker and FINRA Rule 11870 (Customer Account Transfer Contracts) being complied with. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 14 Cal. |
| Count Toward 5 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Death in Family |
| Reason Code | 018 |
| Reason Description | Death in customer's immediate family |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 14 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Transaction |
| Reason | Awaiting Appointment of Executor |
| Reason Code | 019 |
| Reason Description | Awaiting Appointment of executor or administrator of deceased customer's account. |
| When to submit first extension | • Regular way settlement on T+3 business days or • New Issues, on SD+3 business days |
| Maximum Days Allowed | 14 Cal. |
| Count Toward 5 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Exceptional Circumstance |
| Reason Code | 021 |
| Reason Description | Any other exceptional circumstance not covered by designated codes. |
| When to submit first extension | Exception code should only be used if no other code is applicable or if limit in other codes have been exhausted |
| Maximum Days Allowed | 14 Cal. |
| Count Toward 5 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is required. |
Notes:
In the case of extensions that count towards limit, 5 for Reg T and 9 for 15c3-3(n), they are counted on a rolling 12-month period. The counting of extensions applies to an account owner without regard to the member firm filing the extension. If a request for an extension exceeds the limit for that code, it will automatically be denied.
*Due to the change in the settlement cycle to T+1 on May 28, 2024, FINRA will allow a single follow-on extension for Reason Code 14 (DK) extensions. FINRA will continue to monitor the need for the additional extension for this Reason Code and may revert to a single extension in the future.
SEA Rule 15c3-3 (Sales and Security Deficits)
| Reason | Security in Transfer |
| Reason Code | 040 |
| Reason Description | Security has been placed in transfer by a bank for the customer in order to obtain certificate(s) for the amount of shares sold. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Death of Seller |
| Reason Code | 041 |
| Reason Description | Customer died on or after trade date. Awaiting appointment of executor or administrator of deceased customer's account. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Can't Buy-in |
| Reason Code | 042 |
| Reason Description | Broker failed in attempt to buy-in because security is in short supply. Broker has an open order to buy-in and trying to complete transaction. Requires that an open order be maintained until the buy-in of the position is accomplished or otherwise resolved. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 5 |
| Code Limits Description | Final on Fifth Extension of Time Request |
| Reason | Dividend Sold Before Payable Date |
| Reason Code | 043 |
| Reason Description | Security Dividend Sold Before Payable Date or short position created in customer account due to dividend received directly upon which broker has a claim. Request should be made on the (10) business day after settlement date, as the payable date is deemed to be trade date. If a dividend claim is processed against an account after payable date, then the date the charge is made to the account will be trade date and an extension request, if necessary, would be due (10) business days after settlement date. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second |
| Reason | In Foreign Depository |
| Reason Code | 044 |
| Reason Description | Security is held in a foreign depository where settlement procedures or delivery terms are incompatible with the rule. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Security Exchange or Merger |
| Reason Code | 045 |
| Reason Description | Security is in for exchange as a result of merger, consolidation, transfer of assets, exchange offer, recapitalization or other similar transaction or conversion. Reason established to cover situations where an exchange of securities or similar event is being undertaken by customer or delivering agent to accomplish receipt of the security sold. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Postal Strike or Christmas Mail |
| Reason Code | 046 |
| Reason Description | Certificate delayed in mail during Christmas season or due to a postal strike. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is also required. |
| Reason | Customer Account in Transfer |
| Reason Code | 047 |
| Reason Description | Customer account coming from another broker and FINRA Rule 11870 (Customer Account Transfer Contracts) being complied with. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Customer hospitalized |
| Reason Code | 048 |
| Reason Description | Customer has been unexpectedly hospitalized or taken seriously ill and is incapable of delivering security. (Illness or hospitalization of customer should be of a nature that makes it impossible for client to deliver security. Condition must occur after the transaction was made. If condition existed prior to trade date, then reason may not be used.) |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Yes |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Lost Certificate |
| Reason Code | 049 |
| Reason Description | Broker lost and is replacing, or customer lost and has already commenced proceedings for replacement. If customer lost, broker must obtain proof customer is replacing by obtaining copy of any required bond or other appropriate proof. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 30 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | No |
| Limit Per Code | 5 |
| Code Limits Description | Final on Fifth Extension of Time Request |
| Reason | Exceptional Circumstance |
| Reason Code | 050 |
| Reason Description | Any other exceptional circumstances not covered by designated codes. |
| When to submit first extension | Exception code should only be used if no other code is applicable or if limit in other codes have been exhausted |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is also required. |
| Reason | Natural Disaster |
| Reason Code | 051 |
| Reason Description | Natural Disasters, Acts of God, or other abnormal conditions. (Reason may only be used when FINRA staff authorizes it and then solely for the time period and condition specified by staff.) |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is also required. |
| Reason | Foreign Security Sold Under Foreign Settlement |
| Reason Code | 052 |
| Reason Description | Foreign Security sold in a foreign securities market based on foreign settlement procedures. Available only for sale of foreign securities in a foreign market and the security has not been received within (10) business days after settlement date as established by the foreign market. |
| When to submit first extension | On the 10th business day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Security in Transfer |
| Reason Code | 070 |
| Reason Description | Security already in Transfer by the delivering party. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Security in Mail |
| Reason Code | 071 |
| Reason Description | Security already in mail from the delivering party. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date |
| Maximum Days Allowed | 7 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | Yes |
| Limit Per Code | 1 |
| Code Limits Description | Final on Reason |
| Reason | Buy-in Issued |
| Reason Code | 072 |
| Reason Description | Buy-in notice has been issued, but additional time needed before execution of the buy-in. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Unable to Buy-in |
| Reason Code | 073 |
| Reason Description | Buy-in notice issued but unable to buy-in due to no market or security in short supply. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date (d)(4) — by the close of business on the second business day after the 30th calendar day of the paragraph (d)(4) deficit. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Security at Foreign Depository |
| Reason Code | 074 |
| Reason Description | Security held at foreign depository and delivering party has already advised foreign depository to transfer or issue certificate to you. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Merger, Exchange or Reorganization |
| Reason Code | 075 |
| Reason Description | Security involved in merger, exchange or reorganization and the issuer has not completed re-registration to delivering party. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Mutual Fund Certificate |
| Reason Code | 076 |
| Reason Description | Security is a mutual fund and issuer has not issued certificate to delivering party. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Halted Trading or Buy-in Privilege |
| Reason Code | 077 |
| Reason Description | A self-regulatory organization has halted trading in the security or prohibited the execution of buy-in notices. |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date (d)(4) — by the close of business on the second business day after the 30th calendar day of the paragraph (d)(4) deficit. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | No |
| Limit Per Code | 5 |
| Code Limits Description | Final on Fifth Extension of Time Request |
| Reason | Lost Certificate |
| Reason Code | 078 |
| Reason Description | Delivering party has filed the necessary documents with the issuer to replace a lost certificate |
| When to submit first extension | (d)(2) — on 30th calendar day after settlement date (d)(3) — on 45th calendar day after settlement date (h) — on 45th calendar day after settlement date |
| Maximum Days Allowed | 30 Cal. |
Count Toward 9 Limit | Firm to Firm |
| Final on Transaction | No |
| Limit Per Code | 5 |
| Code Limits Description | Final on Fifth Extension of Time Request |
| Reason | Exceptional Circumstance |
| Reason Code | 080 |
| Reason Description | Any other exceptional circumstances not covered by designated codes. (Use of this code requires prior approval.) |
| When to submit first extension | Exception code should only be used if no other code is applicable or if limit in other codes have been exhausted |
| Maximum Days Allowed | 14 Cal. |
Count Toward 9 Limit | |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is also required. Generally FINRA will not accept code 80 extension for Municipal Securities or Certificates of Deposits. |
Notes:
In the case of extensions that count towards limit, 5 for Reg T and 9 for 15c3-3(n), they are counted on a rolling 12-month period. The counting of extensions applies to an account owner without regard to the member firm filing the extension. If a request for an extension exceeds the limit for that code, it will automatically be denied.
FINRA will not grant any exceptional reason code extensions for 15c3-3 (d)(4) when a firm has a deficit in a Municipal Security or Certificate of Deposit (CD)
FINRA Rule 4210 Extension of Time
| Reason | Mark to Market – Covered Agency Transaction |
| Reason Code | 060 |
| Reason Description | Mark to Market Disputes on Covered Agency Transactions (FINRA Rule 4210(e)(2)(H)(ii)d.3.) |
| When to submit first extension | The request must be made on the date the excess mark to market loss or deficiency, as applicable, occurs + 5 (threshold exceeded) or + 6 (all other) business days. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 5 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Collateral Valuation – Covered Agency Transaction |
| Reason Code | 061 |
| Reason Description | Collateral Valuation Disputes on Covered Agency Transactions (FINRA Rule 4210(e)(2)(H)(ii)d.3.) |
| When to submit first extension | The request must be made on the date the excess mark to market loss or deficiency, as applicable, occurs + 5 (threshold exceeded) or + 6 (all other) business days. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 5 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Non-US Holiday – Covered Agency Transaction |
| Reason Code | 062 |
| Reason Description | Non-US Holiday on Covered Agency Transactions (FINRA Rule 4210(e)(2)(H)(ii)d.3.) |
| When to submit first extension | The request must be made on the date the excess mark to market loss or deficiency, as applicable, occurs + 5 (threshold exceeded) or + 6 (all other) business days. |
| Maximum Days Allowed | 7 Cal. |
Count Toward 5 Limit | No |
| Final on Transaction | Yes |
| Limit Per Code | 2 |
| Code Limits Description | Final on Second Extension of Time Request |
| Reason | Natural Disaster – Covered Agency Transaction |
| Reason Code | 063 |
| Reason Description | Natural Disasters, Acts of God, or other abnormal conditions. (Reason may only be used when FINRA staff authorizes it and then solely for the time period and condition specified by staff.) (FINRA Rule 4210(e)(2)(H)(ii)d.3.) |
| When to submit first extension | The request must be made on the date the excess mark to market loss or deficiency, as applicable, occurs + 5 (threshold exceeded) or + 6 (all other) business days. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 5 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is also required. |
| Reason | Other – Covered Agency Transaction |
| Reason Code | 067 |
| Reason Description | Unspecified or finalized for other reason for Covered Agency Transactions (FINRA Rule 4210(e)(2)(H)(ii)d.3.) |
| When to submit first extension | The request must be made on the date the excess mark to market loss or deficiency, as applicable, occurs + 5 (threshold exceeded) or + 6 (all other) business days. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 5 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Third extension of time requests requires additional facts and circumstances explaining the reason for the request prior to FINRA Approval |
| Reason | Strategy-based Deficiency |
| Reason Code | 068 |
| Reason Description | Maintenance Margin Deficiency (Interpretation FINRA Rule 4210(f)(6)/02) |
| When to submit first extension | The request must be made on the date the margin or mark to market deficiency, as applicable, occurs + 15 business days. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 5 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is also required. |
| Reason | Portfolio Margin Deficiency |
| Reason Code | 069 |
| Reason Description | Maintenance Margin Deficiency (FINRA Rule 4210(g)(10)(D)) |
| When to submit first extension | The request must be made on the date the portfolio margin deficiency occurs + 3 business days. |
| Maximum Days Allowed | 14 Cal. |
Count Toward 5 Limit | No |
| Final on Transaction | No |
| Limit Per Code | None |
| Code Limits Description | Member Firms need FINRA approval prior to submitting such request, detailed commentary is also required. |
Notes:
If the Final on Deficiency is "Yes" then the counterparty is limited to the number of extensions shown in the "Limit Per Code" column and additional filings with a different reason code is not permitted.