NEW FOR 2023
Regulatory Obligations and Related Considerations
Regulatory Obligations
Rules 203(b) (Short sales) and 204 (Close-out requirement) of Regulation SHO provide exceptions for bona fide market making activity. The SEC has provided guidance on what constitutes “bona fide market making activities” as well as examples of what does not; member firms must also confirm and be able to
Net Capital
Liquidity Risk Management
Credit Risk Management
Portfolio Margin and Intraday Trading
Segregation of Assets and Customer Protection
Previous:
Regulation SHO – Bona Fide Market Making Exemptions and Reuse of Locates for Intraday Buy-to-Cover Trades
Up:
Financial Management
Next:
Net Capital
The Credit Risk Management, Liquidity Risk Management and Net Capital sections of the 2023 Report on FINRA’s Examination and Risk Monitoring Program (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.
The Credit Risk Management, Liquidity Risk Management and Net Capital sections of the 2023 Report on FINRA’s Examination and Risk Monitoring Program (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.
The Credit Risk Management, Liquidity Risk Management and Net Capital sections of the 2023 Report on FINRA’s Examination and Risk Monitoring Program (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.
The Portfolio Margin and Intraday Trading section of the 2023 Report on FINRA’s Examination and Risk Monitoring Program (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.
Regulatory Obligations and Related Considerations
Regulatory Obligations
Exchange Act Rule 15c3-3 (Customer Protection Rule) imposes requirements on member firms that are designed to protect customer funds and securities. Member firms are obligated to maintain custody of customers’ fully paid and excess margin securities, safeguard customer cash by segregating these assets from the firm’s
Firms have shared the following ways they have used prior FINRA publications, such as Exam Findings Reports, Priorities Letters and Reports on FINRA’s Examination and Risk Monitoring Program to enhance their compliance programs. We encourage firms to consider these practices, if relevant to their business model, and continue to provide feedback on how they use FINRA publications.
Assessment of
In observance of Christmas and New Year’s Day, FINRA’s Market Transparency Reporting Systems will follow the schedule below:
Monday, December 26, 2022 Closed
Monday, January 2, 2023 &
