Derivatives and Other Off-Balance Sheet Items (OBS)
Regulatory Notice 13-10 announced the SEC’s approval, pursuant to FINRA Rule 4524, of the Derivatives and Other Off-Balance Sheet Items Schedule (OBS) as a supplement to the FOCUS report. At the time of its adoption, the OBS required all firms that carry customer accounts or self-clear or clear transactions for others (collectively, “carrying or clearing firms”) to file with FINRA the OBS within 22 business days of the end of each calendar quarter, unless the carrying or clearing firm meets the de minimis exception set forth in the instructions to the OBS. In February 2016, the SEC approved FINRA’s proposal to amend the instructions to the OBS to expand the application of the OBS to certain non-carrying/non-clearing firms that have significant amounts of off-balance sheet obligations. FINRA announced the SEC’s approval of the expanded application of the OBS, as well as the implementation date for newly affected firms, in Regulatory Notice 16-11.
See the Supplemental Quarterly Schedule to Focus Report for the OBS form and updated related instructions.
Frequently Asked Questions
Read the frequently asked questions for information on filling out each section of the OBS.
June 16, 2016
- Q1. Is a firm required to report on the OBS the market value of underwriting commitments entered into on a “best efforts” basis?
- A1. No. Underwriting commitments entered into on a “best efforts” basis are not required to be reported on the OBS.