Regulatory Notice 13-39

SEC Approves Amendments to FINRA Rule 2360 (Options) and FINRA Rule 4210 (Margin Requirements) in Connection With Over-the-Counter Options Cleared by the OCC

Effective Date: November 7, 2013

 

Executive Summary

The SEC approved amendments to treat over-the-counter (OTC) options cleared by The Options Clearing Corporation (OCC) as conventional options for purposes of FINRA Rule 2360 (Options) and as listed options for purposes of FINRA Rule 4210 (Margin Requirements). Accordingly, OCC cleared OTC options will be considered conventional options for purposes of position limit and reporting requirements and delivery of certain disclosure documents and will be considered listed options for purposes of margin requirements, including maintenance margin requirements and portfolio margin requirements. The effective date is November 7, 2013.

 

The amended rule text is set forth in Attachment A.

 

Questions concerning this Notice or FINRA Rule 2360 should be directed to:

  • Max Tourtelot, Director, Options Regulation, at (917) 281-3133;
  • James Turnbull, Associate Director, Options Regulation, at (917) 281-3177; or
  • Kathryn Moore, Associate General Counsel, Office of General Counsel, at (202) 728-8200.

 

Questions concerning FINRA Rule 4210 should be directed to:

  • Glen Garofalo, Director, Credit Regulation, at (646) 315-8464;
  • Steve Yannolo, Project Manager, Credit Regulation, at (646) 315-8621; or
  • Patricia Dorn, Project Manager, Credit Regulation, at (646) 315-8559.