Streamlining Data Requests While Enhancing Oversight

FINRA has unique access to data across markets and our membership. As part of FINRA Forward, we are evolving our procedures and harnessing technology to make better use of this data internally. This FINRA-wide effort has allowed us to reduce the volume and scope of our external data requests to firms, freeing up resources so that both FINRA and our member firms can focus on the most important risks to investors. 

In 2025, total external data requests across FINRA dropped 12%. Fewer, more targeted requests help FINRA become more efficient and effective with our oversight while allowing firms to pay more attention to other priorities, including strengthening their compliance and controls. 

“If we can leverage technology and data to work more efficiently … and that, in turn, reduces the number of requests we make to member firms, then we are ... delivering on our FINRA Forward policies while also becoming better regulators,” Sam Draddy, Senior Vice President of Surveillance and Market Intelligence, noted during a recent episode of the FINRA Unscripted podcast. 

Responding to Industry Feedback on Blotter Requests 

FINRA collects data from member firms to understand their business model and risk profile and to verify that they are complying with the securities laws and our rules. Data also helps us to identify industry trends, and it is critical for surveilling markets to ensure they are safe and transparent. 

One area where we have become more efficient in our use of data involves the trade blotter, which covers a year’s worth of data across all transaction types. Historically, FINRA defaulted to requesting the blotter at the outset of every exam, and firms told us this practice often diverted scarce resources from other compliance responsibilities without yielding an obvious benefit. 

In response to that feedback, in 2025 FINRA adopted a model that uses internal data to determine whether a blotter request is necessary. After back-testing a large sample of past exams, we concluded that in many cases we could rely on internal data or firm-provided alternatives to the large blotter request. Since then, we have reduced our blotter requests by half. Of the remaining requests, a large portion is now more focused on specific timeframes or product types. 

Switching to this more risk-based approach also speeds up exams and reduces the back and forth with the FINRA technology teams who process and analyze the blotter data. Examiners can always request the full blotter, if they feel it is needed. 

“We took a long, hard look at [our requests], and we developed a consistent, data-driven approach to requesting a blotter [on] a risk basis,” J. Koutros, Senior Vice President of Member Supervision Operations, Procedures and Standards, explained.

Reducing 8210 Requests 

Across FINRA, we are assessing situations where it is more appropriate to send member firms an informal versus a formal request for data and information. 8210 requests are formal requests that carry a potential penalizing component if firms either delay their responses or fail to respond. Yet not all situations warrant this formal tool. By not always defaulting to an 8210 request, FINRA can get information sooner and reduce burden on firms. 

“We’ve made a conscious decision to send fewer and less formal requests for data and information without the 8210 imperatives,” Draddy noted. “We’ve also targeted our requests with respect to the information we are asking for, so that firms are not unnecessarily producing data and materials that are not relevant to our investigations.” 

Centralizing Written Supervisory Procedures 

Another priority is creating a centralized library of Written Supervisory Procedures (WSPs) that can be shared across FINRA departments. FINRA may request these lengthy documents, which explain a firm’s protocols and controls, in connection with an exam, enforcement matter, investigation, or new member application. By building the infrastructure to share them internally in a secure manner, our staff will be able to check existing records before requesting updated or additional information from firms. 

Technology as a Game Changer 

Advanced technology is essential for evolving our approach. For example, FINRA is integrating data with analytics and artificial intelligence tools to pinpoint suspicious accounts after a stock-moving news event. This avoids the normal practice of requesting blue sheets—detailed transaction data—which can take up to two weeks to compile. With some types of data available in near real-time, FINRA can analyze market activity faster and more precisely while reducing external requests to firms. 

The numbers tell a compelling story. Blue sheet requests have plummeted to roughly 80,000 in 2025 from 273,000 in 2022—a 70% drop. Firms, meanwhile, have responded positively to the shift. 

“What I’ve heard from their compliance, surveillance, and investigation teams is that spending less time on responding to FINRA requests has allowed them to allocate resources to fulfilling their other responsibilities, which includes [monitoring] the trading at their respective firms and ensuring that their brokers and customers are complying with FINRA rules, firm rules, and the federal securities laws,” Draddy said. “So, it’s basically a win-win for everybody.” 

To learn more about how FINRA is streamlining data requests, listen to this FINRA Unscripted episode.