Regulatory Notice 10-28

New System for Processing Regulation T and SEA Rule 15c3-3 Extension of Time Requests; Effective Dates: August 23, 2010 (Phase I); November 8, 2010 (Phase II)

Executive Summary

Beginning August 23, 2010, FINRA will introduce, in phases, a new Regulatory Extension (REX) system that replaces FINRA's existing Reg T system to collect Regulation T and SEA Rule 15c3-3 extension of time requests. The new REX system offers enhanced functionality that will:

 

  • give firms the ability to amend or update submitted extension requests;
  • offer firms a wider variety of search fields for reviewing their submitted extension requests;
  • introduce text fields that firms can use to input their own, internal identifiers for each extension request; and
  • offer firms that submit extension requests via batch submission a daily report of submissions.

 

Also effective August 23, 2010, clearing firms must submit their monthly reporting of correspondent firms' extensions to transaction ratio by completing an online form accessible via the FINRA Firm Gateway through the new REX system. FINRA has revised the layout of the form, but it is otherwise unchanged.

 

This Notice also details new and modified data elements for the REX system.

 

Questions concerning 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
  • Vincent Rotolo, Senior Credit Specialist, Credit Regulation, at (646) 315-8576.