Regulatory Notice 16-11

SEC Approves Expanded Application of Supplemental Schedule for Derivatives and Other Off-Balance Sheet Items

Implementation Date: The supplemental schedule disclosing off-balance sheet information as of June 30, 2016, must be filed with FINRA on or before August 2, 2016.

The SEC has approved FINRA’s proposal to amend the instructions to the Derivatives and Other Off-Balance Sheet Items Schedule (OBS) to expand the application of the OBS to certain non-carrying/non-clearing firms that have significant amounts of off-balance sheet obligations. Subject to a de minimis exception, the OBS must be filed by (1) all FINRA member firms that selfclear their proprietary transactions or clear transactions for others or carry customer accounts; and (2) all other FINRA member firms that have, pursuant to Rule 15c3-1 under the Securities Exchange Act of 1934 (SEA), a minimum dollar net capital requirement equal to or greater than $100,000 and at least $10 million in reportable items pursuant to the OBS. Newly filing firms must file with FINRA their initial OBS disclosing off-balance sheet information as of June 30, 2016, on or before August 2, 2016. Carrying or clearing firms that were subject to the OBS’s reporting requirements before the recently approved expansion shall continue to file on a quarterly basis, as required, without interruption.

The OBS and its amended instructions are available at http://www.finra.org/industry/notices/16-11.

Questions concerning this Notice should be directed to:

  • Kris Dailey, Vice President, Risk Oversight & Operational Regulation (ROOR), at (646) 315-8434 or by email;
  • Peter Tennyson, Director, Broker-Dealer Operations and Financial Responsibility (BDOFR), at (646) 315-8403 or by email; or
  • Meredith Cordisco, Assistant General Counsel, Office of General Counsel, at (202) 728-8018 or by email.

Related Documents: 

DateTitleFormat - Size
4/5/2016Supplemental Quarterly Schedule to FOCUS ReportPDF - 398.68 KB