Regulatory Notice 08-08

FINRA Temporarily Increases Margin Maintenance Requirements on Auction Rate Securities Backed by Fixed Income Products

Effective Date: March 6, 2008

The purpose of this Notice is to advise FINRA member firms that FINRA is temporarily increasing the maintenance margin requirements for auction rate securities pursuant to NYSE Rule 431(f)(8)(A) and NASD Rule 2520(f)(8)(A). Effective immediately, all auction rate securities that are backed by fixed income products (e.g., municipal bonds, collateralized debt obligations, etc.) will have a 25 percent maintenance requirement.

Questions regarding this Notice may be directed to:

  • Rudolph Verra, Managing Director, Credit 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.