Interpretive Letters for Financial and Operational Rules

Auction Rate Securities

 

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 (PDF 50 KB) 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 (PDF 47 KB) 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 (PDF 42 KB)

 

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.