Regulatory Notice 07-60

FINRA Announces Relief Relating to Customer and PAIB Reserve Formula Computations and Required Deposits around the December 2007 Month-End Holidays

Executive Summary

Because the 2007 Christmas and 2008 New Year's Day holidays occur on Tuesdays, many employees of member firms may take off the preceding Mondays. This may impair firms' ability to prepare accurate computations of the amounts required to be reserved pursuant to SEC Rule 15c3-3. As such, FINRA is notifying member firms that staff of the Division of Trading and Markets of the SEC is granting an optional one-day extension to firms for making the deposit of amounts required to be reserved pursuant to SEC Rule 15c3-3. These reserved amounts are based on the Customer and PAIB reserve formula computations prescribed by SEC Rule 15c3-3(e)(3) and computed as of Friday, December 21 and Friday December 28, 2007.1

1 Paragraph (e)(3) of SEC Rule 15c3-3 requires a broker-dealer to prepare the reserve formula computations, necessary to determine the amount required to be deposited as specified in paragraph (e)(1) of SEC Rule 15c3-3, to be made weekly, as of the close of the last business day of the week, and the deposit so computed to be made no later than one hour after the opening of banking business on the second following business day.