Regulatory Notice 10-03

FINRA Requests Comments on Proposed Consolidated FINRA Rules Governing Securities Loans and Borrowings, Permissible Use of Customers' Securities and Callable Securities

Comment Period Expired: March 8, 2010

As part of the process of developing a new, consolidated rulebook (the Consolidated FINRA Rulebook), FINRA is requesting comment on three proposed FINRA rules. Proposed FINRA Rule 4314 (Securities Loans and Borrowings) sets forth the requirements applicable to a member firm that is a party to an agreement for the loan or borrowing of securities. Proposed FINRA Rule 4330 (Customer Protection—Permissible Use of Customers' Securities) sets forth the requirements applicable to a member firm's borrowing or lending of a customer's margin securities that are eligible to be pledged or loaned. Proposed FINRA Rule 4340 (Callable Securities) sets forth the obligations applicable to any callable securities a member firm has in its possession or control.

The text of the proposed rules is set forth in Attachment A.

Questions regarding this Notice should be directed to:

  • Kris Dailey, Vice President, Risk Oversight & Operational Regulation, at (646) 315-8434; or
  • Yui Chan, Managing Director, Risk Oversight & Operational Regulation, at (646) 315-8426.
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
1/20/2010Plexus Consulting LLCPDF - 50.54 KB
3/8/2010SIFMAPDF - 104.09 KB
3/8/2010ACIPDF - 474.71 KB
3/8/2010Fidelity InvestmentsPDF - 262.47 KB