December 28, 2021

FINRA Updates Operational Interpretations to Align with SEA Amendments

FINRA revised and redesignated its Interpretations of the SEA Financial and Operating Rules to make them consistent with recent SEC amendments.

In the regulatory notice, FINRA revised and redesignated financial responsibility and operational rules related to: (i) net capital requirements, (ii) custody, (iii) OTC derivative dealer risk management, (iv) security-based swap transactions and margin, and (v) broker-dealer reporting requirements. FINRA also revised its interpretations relating to recordkeeping requirements under SEA Rule 17a-3(b)(2)/01 (Exchange Market Maker’s Using Clearance Account as Books and Records) and SEA Rule 17a-4(i)/01 (Exchange Market Maker’s Using Clearance Account as Books and Records).

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