Distribution Manager is used by a member who has been designated by the filer of a firm-commitment initial public offering (IPO) to report underwriting commitments and retentions on behalf of the syndicate. In addition to the underwriting data required by FINRA Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings), the system also allows firms to provide underwriting data, on a voluntary basis, for equity follow-on offerings that have been filed with FINRA pursuant to FINRA Rule 5110 (Corporate Financing Rule).
After an IPO or follow-on offering has been accepted by the Corporate Financing Department, the firm designated to submit the distribution information will be able to see the Initial Distribution Form (DIR) displayed in Firm Gateway®. In the case of an IPO, the designated member will be required to provide the underwriters, the anticipated effective date, and the commitment and retention information for each underwriter in the DIR form, on or before the offering date. After the submission of the DIR, the system will automatically generate the Final Distribution Form (DFR) in Firm Gateway.
Similarly, for both IPOs and follow-on offerings, the designated member should populate the form with the final list of distribution participants and their underwriting commitment and retention amounts, no later than three business days (T+3) after the offering date.