Proposed Rule Change to Adopt FINRA Rules 4314 (Securities Loans and Borrowings), 4330 (Customer Protection – Permissible Use of Customers’ Securities) and 4340 (Callable Securities) in the Consolidated FINRA Rulebook

Financial Industry Regulatory Authority, Inc. ("FINRA") is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to adopt financial and operational rules relating to securities loans and borrowings, permissible use of customers' securities, and callable securities as FINRA Rules in the consolidated FINRA rulebook.  Specifically, the proposed rule change would adopt with amendments the following as FINRA Rules:  (1) Incorporated NYSE Rule 296 (Liquidation of Securities Loans and Borrowings) and Supplementary Material paragraphs .10 and .20 regarding requirements applicable to a member that is a party to an agreement for the loan or borrowing of securities as FINRA Rule 4314 (Securities Loans and Borrowings); (2) Incorporated NYSE Rule 402 (Customer Protection – Reserves and Custody of Securities) regarding requirements applicable to a member borrowing or lending a customer's securities that are eligible to be pledged or loaned as FINRA Rule 4330 (Customer Protection – Permissible Use of Customers' Securities); and (3) Incorporated NYSE Rule 402.30 (Securities Callable in Part) regarding requirements applicable to a member that has in its possession or under its control any callable securities as FINRA Rule 4340 (Callable Securities).

TitleFormat - SizeStatus
Text of Proposed Rule ChangePDF - 2.78 MB
Federal Register NoticePDF - 230.8 KB
Extension No. 1PDF - 26.63 KB
Response to CommentsPDF - 310.34 KB
Amendment No. 1 to Proposed Rule ChangePDF - 74.52 KB
Amendment No. 2 to Proposed Rule ChangePDF - 73.27 KB
Approval OrderPDF - 189.73 KB