SEC No-Action Guidance Expanding the Definition of "Ready Market" for Certain Foreign Equity Securities

FINRA issued a notice informing members that the staff of the Division of Trading and Markets of the Securities and Exchange Commission has issued a no-action letter setting forth conditions under which broker-dealers may treat certain foreign equity securities as having a "ready market" under Exchange Act Rule 15c3-1(c)(11)(i) and subject to the haircuts under Exchange Act Rule 15c3-1(c)(2)(vi)(J) (the no-action letter). This letter also serves to expand the number of foreign securities eligible as foreign margin stock under Regulation T.

We had published an item about the no-action letter previously. See prior news story.

See: Regulatory Notice 12-58 (links externally to FINRA website).