Regulatory Notice 14-02

FINRA Requests Comment on Proposed Amendments to FINRA Rule 4210 for Transactions in the TBA Market

Comment Period Expires: February 26, 2014
The comment period has been extended to March 28, 2014.

FINRA is seeking comment on proposed amendments to FINRA Rule 4210 to establish margin requirements for transactions in the To Be Announced (TBA) market. The proposal, designed to reflect the growth of the TBA market and to replace current interpretive materials under Rule 4210 that have become outdated, is informed by the set of best practices adopted by the Treasury Market Practices Group (TMPG) of the Federal Reserve Bank of New York (FRBNY). Consistent with the overarching goal of many regulatory initiatives since the financial crisis, the proposal aims to reduce counterparty credit risk. The proposal would accomplish this in the TBA market by addressing, among other things, maintenance margin and variation (also referred to in the proposed rule language and this Notice as mark to market) margin requirements, risk limit determinations, concentrated exposures, and exemptions for de minimis transfer amounts and for transactions cleared through registered clearing agencies. The proposed rule amendment is available as Attachment A at

Questions regarding this Notice should be directed to:

  • Glen Garofalo, Director, Credit Regulation, at (646) 315-8464;
  • Peter Tennyson, Director, Broker-Dealer Operations and Financial Responsibility, at (646) 315-8403;
  • Adam H. Arkel, Associate General Counsel, Office of General Counsel, at (202) 728-6961.

Related Documents: 

DateTitleFormat - Size
1/27/2014Attachment to Regulatory Notice 14-02PDF - 49.25 KB
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
2/24/2014Coastal SecuritiesPDF - 77.63 KB
3/13/2014Ambassador Financial GroupPDF - 40.24 KB
3/20/2014FirstSouthwestPDF - 37.7 KB
3/21/2014Brean Capital, LLCPDF - 218.12 KB
3/27/2014Investment Company InstitutePDF - 172.84 KB
3/27/2014Brevan Howard Investment Products Ltd.PDF - 2.41 MB
3/27/2014Association of Institutional INVESTORSPDF - 346 KB
3/27/2014Pershing LLCPDF - 85.05 KB
3/28/2014Bond Dealers of AmericaPDF - 413.28 KB
3/28/2014Duncan-Williams, Inc.PDF - 1.64 MB
3/28/2014BB&T SecuritiesPDF - 1.31 MB
3/28/2014Financial Information ForumPDF - 364.73 KB
3/28/2014George K. Baum & CompanyPDF - 3.2 MB
3/28/2014MBAPDF - 216.05 KB
3/28/2014Sandler O'Neill & Partners, L.P.PDF - 877.14 KB
3/28/2014Mischler Financial Group, Inc.PDF - 78.05 KB
3/28/2014G.X. Clarke & Co.PDF - 690.18 KB
3/28/2014Crescent Securities Group, Inc.PDF - 419.72 KB
3/28/2014Credit Suisse SecuritiesPDF - 2.45 MB
3/28/2014SIFMAPDF - 120.03 KB
3/28/2014MountainView Securities, LLCPDF - 179.67 KB
3/28/2014Robert W. Baird & Co.PDF - 111.95 KB
3/28/2014Shearman & Sterling LLPPDF - 1.03 MB
3/28/2014PIMCOPDF - 307.78 KB
3/28/2014SIFMA Asset Management GroupPDF - 95.04 KB
3/31/2014Simmons First Investment Group, Inc.PDF - 66.77 KB
3/31/2014Vining Sparks, IBG, LPPDF - 215.9 KB
4/2/2014MetLifePDF - 63.59 KB
4/7/2014FHLBIPDF - 160.64 KB