Regulatory Notice 08-46

Interpretive Guidance on Capital Treatment of Introducing Broker-Dealers’ Clearing Deposits; Effective Dates: Immediately with respect to Interpretation I; January 5, 2009, with respect to Interpretation II

Executive Summary

This Notice provides FINRA member firms with interpretive guidance from the staff of the Securities and Exchange Commission's Division of Trading and Markets regarding clearing deposits:

 

  • Interpretation I, applicable to all clearing agreements and effective immediately, clarifies the net capital treatment of introducing firms' clearing deposits with their clearing firm in the event the clearing agreement is terminated.

  • Interpretation II, effective January 5, 2009, addresses termination penalty clauses in clearing agreements and affects only those member firms whose clearing agreements contain such a clause.

 

We strongly encourage all firms that are a party to a clearing agreement to review this Notice carefully for its impact and any action that may be necessary.

 

Questions regarding this Notice may be directed to:

 

  • Anthony Lucarelli, Director, Risk Oversight & Operational Regulation, at (646) 315-8520;
  • Bernadette Chichetti, Director, Risk Oversight & Operational Regulation, at (646) 315-8428; or
  • Susan DeMando, Associate Vice President, Financial Operations, at (202) 728-8411.