Guidance

Short sales by options professionals established during the course of bona fide market making activities are exempt from the affirmative determination requirements, regardless of whether the short sales constitute a permitted offset under Regulation T.

Requirements under NASD Rule 3030 (formerly Article III, Section 43) for investment seminar activities conducted by dually registered persons that charge fees from participants.

Clarification of NASD Notice to Members 94-44 to situations in which a dually registered person maintains discretionary trading authority, determines portfolio changes, and prepares trade instructions for customer accounts and charges the accounts an asset-based fee.

Whether a proposed standby purchase agreement entered into between affiliate of a member and an issuer in connection with a public offering of the issuer's common stock could constitute an option.

Cash rebates issued to pension plan customers with respect to secondary market transactions in outstanding securities (under former Article III, Section 24, now Rule 2740 and IM-2740).

Background

FINRA examines broker-dealers on a regular cycle basis, with firms posing greater risk receiving an examination more frequently. In connection with each of these examinations, FINRA prepares a report—which is available only to the relevant firm—addressing certain aspects of the firm's compliance with securities rules and regulations.

A motion to dismiss is a request made by a party to the arbitrator(s) to remove some or all claims raised by another party filing a claim. Rule 12504 of the Code of Arbitration Procedure for Customer Disputes and Rule 13504 of the Code of Arbitration Procedure for Industry Disputes (collectively, the Codes) establish procedures that govern motions to dismiss.

For any public offering that is required to be filed pursuant to FINRA Rule 5110(a)(2), FINRA Rule 5110(a)(3)(A) describes that the required documents and information must be filed by participating members with FINRA no later than three business days after any documents are filed with or submitted to the SEC, including confidential filings or submissions, or any state securities commission or other similar U.S.

The TRACE Markup/Markdown Analysis Report is a monthly report designed to assist firms in their supervision activities by providing transparency into a portion of FINRA's surveillance program of corporate and agency fixed income transactions customer pricing.  

The TRACE Markup/Markdown Analysis Report is built upon logic developed to pair purchase and sale transactions reported to TRACE.  

Background

Since we introduced our FINRA360 initiative, FINRA has taken a series of actions to enhance support for small firms, including providing small firms with tools and resources to help them comply with regulations.

A consistent comment that FINRA has heard is a desire on the part of small firms for a tool to allow them to get answers to general questions that did not rise to a level that required involvement by their Regulatory Coordinator.

1. How do I entitle someone to access an eFOCUS report?
2. Where are eFOCUS filings located in the redesigned FINRA Gateway?
3. How do I transmit an eFOCUS filing to my clearing firm?
4. When are my eFOCUS filings due?
5. Where can I see previously filed eFOCUS reports?
6. How do I amend a submitted eFOCUS report?
7. How do I print an eFOCUS report?

The table below provides a reference description for all of the elements found for ATS Cross Manipulation exceptions identified during the month.