Regulatory Notice 18-02

FINRA Requests Comment on Proposed Amendments to FINRA Rule 4521 and New Supplemental Liquidity Schedule

Comment Period Expires: March 8, 2018


FINRA is seeking comment on proposed amendments to FINRA Rule 4521 (Notifications, Questionnaires and Reports) that would require specified member firms to notify FINRA no more than 48 hours after specified events that may signal an adverse change in liquidity risk. FINRA also seeks comment on a proposed new Supplemental Liquidity Schedule (SLS) that member firms with the largest customer and counterparty exposures would file as a supplement to the FOCUS Report. On the new SLS, these firms would report information related to specified financing transactions and other sources or uses of liquidity. The information would include among other things financing term, collateral types and large counterparties.

FINRA is seeking comment on all aspects of the proposed amendments to Rule 4521 and the proposed new SLS (together, referred to as the “proposal”), including the impact of the proposal on market participants. The proposed amendments to Rule 4521 are available as Attachment A. The proposed SLS and instructions to the SLS are available as Attachments B and C, respectively.

Questions regarding this Notice should be directed to:

  • Kris Dailey, Vice President, Risk Oversight & Operational Regulation, at (646) 315-8434;
  • Kathryn E. Mahoney, Director, Financial Operations Policy Group, at (646) 315-8428; or
  • Adam H. Arkel, Associate General Counsel, Office of General Counsel, at (202) 728-6961.
The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments: 
DateCommenterFormat - Size
2/21/2018Vining Sparks IBG, L.P.PDF - 168.62 KB
3/7/2018William Blair & Co., LLCPDF - 86.92 KB
3/8/2018SIFMAPDF - 239.31 KB