Regulatory Notice 10-45

SEC Approval and Effective Date for New Consolidated FINRA Rules Regarding Margin Requirements, Daily Record of Required Margin, and Extension of Time Requests; Effective Date: December 2, 2010

Executive Summary

FINRA's rule change to adopt consolidated rules regarding margin requirements, daily record of required margin and extension of time requests under Regulation T and SEA Rule 15c3-3 for the Consolidated FINRA Rulebook becomes effective December 2, 2010.

 

The new FINRA rules are based on and replace provisions in the NASD and Incorporated NYSE Rules. The new rules also clarify that a firm must take into account the special deductions from net capital set forth in FINRA Rule 4210 (Margin Requirements) in determining its status under FINRA Rule 4120 (Regulatory Notification and Business Curtailment).

 

This Notice also announces the adoption of the Incorporated NYSE Rule 431 Interpretations, subject to certain amendments, as interpretations to FINRA Rule 4210, which also become effective December 2, 2010. The text of the new rules is in Attachment A on our website at www.finra.org/notices/10-45. The FINRA Rule 4210 interpretations are available at www.finra.org/rules/4210interpretations.

 

Questions concerning this Notice should be directed to:

 

  • Rudolph R. Verra, Managing Director, Risk Oversight and Operational Regulation, at (646) 315-8811;
  • Glen Garofalo, Director, Credit Regulation, at (646) 315-8464;
  • Steve Yannolo, Principal Credit Specialist, Credit Regulation, at (646) 315-8621; or
  • Kathryn Moore, Assistant General Counsel, Office of General Counsel, at (202) 974-2974.