Regulatory Notice 08-41

FINRA Announces Amendments to Make Permanent the Portfolio Margin Pilot Program; Effective Date: August 1, 2008

Executive Summary

Effective August 1, 2008, the portfolio margin pilot program set forth in NASD Rule 2520(g) and Incorporated NYSE Rule 431(g) became permanent. In addition, effective August 1, 2008, NASD Rule 2520(g) and Incorporated NYSE Rule 431(g) were amended to codify certain FINRA interpretations related to concentrated equity positions and day trading.

NASD Rule 2520(g) and Incorporated NYSE Rule 431(g), as amended, are set forth in Attachment A of this Notice.

Questions regarding this Notice should be directed to: 

• Rudolph Verra, Managing Director, Risk Oversight and Operational Regulation, at (646) 315-8811;
• Glen Garofalo, Director, Credit Regulation, at (646) 315-8464; or
• Steve Yannolo, Principal Credit Specialist, Credit Regulation, at (646) 315-8621.